Type of managed care organization (MCO) in which a program administrator contracts with a number of physicians who agree to provide treatment to members (subscribers) in their own offices. This is a group association that has no common facilities and is open-panel because a physician’s practice is not limited to IPA patients. Physicians are not employees of the MCO and are not paid salaries. They receive reimbursement on a capitation or fee-for-service basis; also referred to as a medical capitation plan . Also known as individual practice organization (IPO) .