Orthopaedists See Savings, Teamwork in New Speciality IPA

Arkansas’ first specialty-based Independent Physician Association was formed earlier this year by a group of orthopaedists. A year in planning, the Arkansas Orthopaedic Network was unveiled in August.

The group, now numbering 59 doctors from throughout the state, was originated by Dr. Edward H. “Ted” Saer III, Dr. Thomas Frazier and Dr. C. Lowry Barnes, all of Little Rock. The physicians, all board-certified orthopaedists, represent both general surgeons and subspecialists.

Besides group contracting for managed care contracts, the other benefits of forming the IPA, according to Barnes, were quality assurance and utilization review and savings from group purchasing.

“We used a consultant out of California, Dr. Tom Grogan, who is an orthopaedic surgeon,” Barnes says. “He helped us with organizational issues at the beginning, stressing the importance of doing the IPA, getting the thing established.”

Though managed care might be viewed as the spark toward physicians forming an IPA, Barnes says that not the case in Arkansas right now. “This is simply a way to have more of us working together, learning together.”

The benefits to bulk purchasing have already shown up in the doctors’ malpractice insurance, he says. By buying as a group rather than a series of individual policies, the AON physicians have realized significant savings.

“We saved about 25 percent on our malpractice insurance the first year,” Barnes says. “That’s pretty nice savings. Also, some of the X-ray equipment and stuff like that is less expensive.”

Barnes says the group is at its limit of members now. The AON has a central office in Little Rock on McKinley Street, near Sears and Columbia Doctors Hospital. “We have a full credential process so we are doing things according to the [National Commission of Quality Assurance] guidelines. [The office is] also our contact for [insurance] contracts. We’re just getting cranked up on that now.”

Barnes says the network will work with most of the state’s major hospitals.

“We see ourselves as providing geographic coverage as well as full orthopaedic coverage both from a general approach and subspecialty approach. We think we provide a good product, good service at an appropriate price.”

The IPA idea apparently already has caught the fancy of other specialists.

“There have been four other specialties call me already to ask me about how to go about setting one up in the state in their own specialty — neurology, psychiatry, neurosurgery, etc.,” Barnes says.