What is the primary function of Independent Practice Associates (IPA)?

The primary function of Independent Practice Associates (IPA) is to organize physicians for contracting with Managed Care Organizations (MCOs). This means that IPAs play a crucial role in negotiating payment rates and developing relationships between independent physicians and health plans. By grouping physicians together, IPAs can leverage their collective bargaining power to secure favorable contract terms with MCOs, thereby helping to ensure that physicians can provide care while also being adequately compensated for their services.

The other options, while related to healthcare operations, do not accurately capture the core mission of IPAs. For instance, owning and operating hospitals is more aligned with health systems or hospital management organizations. Employing staff physicians is typically the function of Health Maintenance Organizations (HMOs), which integrate both insurance coverage and care delivery under one umbrella. Lastly, providing health insurance directly is the role of health insurance companies rather than IPAs, which primarily facilitate access and negotiations between providers and payers. Thus, the correct choice emphasizes the IPA's essential function in fostering collaboration between independent practitioners and MCOs.