A partnership, corporation, association, or other legal entity which has entered into an arrangement for provision of their services with persons who are licensed to practice medicine, osteopathy, dentistry, or with other health manpower (a majority of whom are licensed to practice medicine or osteopathy), which arrangement provides: that such persons provide their professional services in accordance with a compensation arrangement established by the entity; and to the extent feasible (i) that such persons use such additional professional personnel, allied health professions personnel, and other health personnel as are available and appropriate for the effective and efficient delivery of the services, (ii) for the sharing by such persons of medical and other records, equipment, and professional, technical and administrative staff, and (iii) for the arrangement and encouragement of the continuing education of such persons in the field of clinical medicine and related areas. The term originated and is defined in the Health Maintenance Organization Act of 1973, section 1302(5) of the PHS Act. IPAs are one source of professional services for HMOs and are modeled after medical foundations.
A type of health care provider organization composed of physicians, in which the physicians maintain their own practices but agree to furnish services to patients who have signed up for a prepayment plan in which the physician services are supplied by the IPA. An IPA is not a health maintenance organization (HMO), a health care organization (HCO), or a preferred provider organization (PPO).