Certified Medical Administrative Assistants (CMAA) Practice Exam 2025 - Free CMAA Practice Questions and Study Guide

The correct answer is the independent practice association (IPA). IPAs are networks of independent physicians or provider groups that contract with managed care organizations, such as Health Maintenance Organizations (HMOs) or Preferred Provider Organizations (PPOs). This structure allows individual practitioners or smaller groups to maintain their own office space and independence while still being part of a larger network that offers services to members of the managed care plans.

By being affiliated with an IPA, providers can benefit from shared resources, negotiate better payment rates, and ensure a steady stream of patients through the managed care networks. This model is advantageous for both the providers and the health plans, as it combines independent practice with collective bargaining power.

In contrast, other choices like group practices often involve providers working in a shared facility and pooling their resources, rather than maintaining independent office spaces. A hospital network usually refers to a system of hospitals that collaborate or share resources, which does not pertain to individual provider contracts. Meanwhile, a preferred provider organization (PPO) is a type of managed care plan that creates a network of preferred providers but does not specifically indicate the structure of independent practices maintaining their own offices.