Independent Physician Organizations Essay

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Are Independent Physician Organizations beneficial to the "healthcare crisis"? Independent Physician Organizations: They are a group of private physicians joining together in an association to contract with a managed care organization. (“Healthcare….risk”). Although they were initially formed for physicians to group up together to talk with health insurers, but the most successful ones developed the capability to take the financial risk for the cost of their patients care and to be rewarded in return. Through 1990s many of them failed as they were unable to handle the risk, and rest vanished as risk bearing ability became less common (“Independent…”2017) The Guiding Principles for Independent Physician Organizations • They should be able to bring up a health care delivery system …show more content…

Optimally functioning Independent Physician Organizations offer benefits like the following:  Financial incentives of physicians are properly aligned  The practice administration and management are efficient  Political influence in the medical and provider community  Support from the peers  Facilities are Optimized  The ability to negotiate satisfactory agreements with other entities such as radiology, laboratory, and hospital systems is enhanced.  The local financial and care management control in managed care are autonomous.  The services like expanded hours, urgent care, and outreach services for prevention, telephone triage, and follow-up expertise are improved. The risks of Independent Physician Organizations include the following:  The risk of significant losses / bankruptcy is higher along with the Underfunded capitation revenue.  A decrease in the payments made by the payer.  The physician would have conflicts of interest between financial gain and optimal care for the patient.  Collective bargaining by the physicians from Federal Trade Commission and Department of Justice are

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