The chronicle of the failure of Texas IPA Genesis Physicians Practice Association (see September, page 2) makes the case for some generalizations that apply to all such ventures. Physicians always seem to think that other lines of work (like the insurance business) are easier to operate than their own.
Chairman Ralph Turner, M.D., blames the third-party administrators who "just didn't pay" the claims. But noticing when necessary work isn't being done is the responsibility of management (call it supervision), and the buck for that stops at the chairman's desk.
IPAs fail for two reasons: management incompetence and contracting below cost. GPPA's failure sounds like a classic example.
Jeffrey Denning Practice Performance Group Long Beach, Calif.