In July of 1994 I wrote an article for
Sacramento Medicine entitled " Survival in
Private Practice." This was basically the
beginning of a new approach in the practice
of medicine. The name of the organization
in the article was called Quality Practice
Alliance. The word Traditional has been
substituted for Quality in order to project
an image of the medical practice style
involved. It was hoped that the Traditional
Practice Alliance (TPA) would stem the
erosion of private practice in Sacramento.
As TPA became formalized, our two
primary goals were to preserve both quality
medicine and independent private practice.
The structure that allows us to achieve
this, is that of a nonprofit medical care
foundation. It is staffed only by volunteers,
thus keeping our overhead negligible. In
essence we are an independent, physician
driven, professional standards review organization.
There is no fiduciary control over the individual
offices.
With such a simplistic structure, the
makeup of the provider panel became
critical. We did not wish to be percieved as
an "Old Boys' Club", or as those fools who
did not move fast enough to get the
lucrative HMO contracts. Thus our version
of a provider profile was formed.
Our members must be board certified and
have a good malpractice and utilization
history. They must believe in hands on
medicine, where direct patient care is their
primary concern. Members must be
engaged in the private and independent
practice of medicine, not subject to the
direction or control of any other persons
or entity. Finally, our members must be
committed to reasonable cost containment.
It should be apparent from the tone of this
article, that TPA does not believe that a
physician can service both private pay
patients and capitated HMO contracts. The
two practice types cannot be melded. Each
of us must choose the form that fits our
goals. TPA can be a vehicle to help
providers wishing to limit their exposure to
discounted HMOs.
The manner in which this is accomplished
is through networking. The physician
panel works in several ways. It provides us
with an established referral system and a
built in patient base. With every new
qualified physician, we all increase our
penetration into the market. Because these
referrals are from independent offices, they
are rich in PPOs and indemnity plans.
Another way we are expanding is through
joint marketing efforts with insurance plans
that believe in our practice tenets. This will
provide our patients with alternatives to
discount HMOs. If we are to preserve our
patient base, we must aid people in their
insurance choices.
TPA has endorsed LifeGuard Insurance as
an affordable, not-for-profit carrier that
truly believes in quality patient care. They
are consistently rated among the highest of
California's thirty HMOs. LifeGuard is
committed to preserving the patient-
physician relationship and a modified fee-
for-service reimbursement schedule.
The principle of networking is being
applied to other areas as well. All aspects
of medical practice have been impacted by
discount HMOs. By selecting and
interacting with only quality organizations,
we will help preserve some of the original
infrastructure that has made our medical
system the best in the world. Not
everything should be driven down to the
lowest common denominator because of the
bidding practices of some for-profit-
HMOs.
If one doubts that an organization could
grow merely through networking, peer
review and internal marketing, they need
only look at TPA. Since mid-1994 we
have grown from seven board members to
forty-two providers. We have helped
remove some of the frustration our patients
have experienced in finding independent
practices. We have had a positive financial
impact on several offices. We have
networked with other organizations (such as
LifeGuard, Unilab and the Independent
Mental Health Practice Alliance) to service
and preserve our patient base.
Currently, in Sacramento there is a
paradigm shift away from IPAs towards
other integrated systems. The IPAs of the
past add too much cost to be tolerated in a
maturing market place. TPA adds no cost
while providing many of the same
functions. However, one of the main
differences is that we aid physicians in
preserving their independence and
standards of medical care.
