A new group in Houston, Texas, wants to help private practice doctors cut their costs. Announced on December 13, 2018, Doctors IPA gives physicians, dentists and other doctors preferred rates on services for their practices and homes. The launch comes as the cost of running a medical practice keeps going up.
Doctors IPA is an independent provider association. Its members get discounts on health insurance, property and casualty coverage and payroll processing. Mortgages, loans, life and disability insurance, annuities and credit card processing are also on the list. The group plans to add new providers every year, so the list will grow.
The association was set up by doctors for doctors. Because it pools its whole network, it can negotiate sizable discounts for members. According to the group, the average member can save $2,000 a year on payroll. Malpractice, home and auto insurance can bring savings of more than $5,000. Card processing fees can fall by $2,500 a year. Some members, it says, have saved more than $96,000 a year on taxes and property and casualty insurance.
Membership costs $1,500 a year. The idea is that doctors save on what they buy, so they can spend more of their attention on patients.
How the discounts work
Vendors are chosen for their reputation and quality of service. They also must be willing to give members the deepest possible discounts. All of them have agreed to treat the association as if it were an organization with more than 5,000 employees. As a result, members get pricing that, according to the group, only the top 5% of U.S. organizations can reach.
The group lists these ranges.
- 8% to 30% off fully funded or level-funded health, dental and vision insurance for each practice;
- 15% to 25% off personal policies such as homeowners, auto, collectibles, second homes, boats and aircraft;
- savings on business policies, including malpractice, property and casualty, business interruption, workers’ comp and cyber security;
- savings of up to 40%, plus mortgages and other loans below market rates through lending partners.
Members can also use a voluntary employees’ beneficiary association (VEBA) and other benefit programs. Then they can pay for annuities and life and disability premiums with triple-tax-free dollars. The group says this saves members tens of thousands of dollars in taxes each year. It also helps them put money aside for retirement.
The group was founded by Satish Iduru, MD, a gastroenterologist in private practice in Houston, before its public launch.
