Current law permits a hospital, health system, or medical school to organize and become a member of a medical foundation, which can practice medicine through its employees or agents who are physicians, chiropractors, optometrists, or podiatrists (collectively, providers). Current law prohibits a medical foundation from operating as a for-profit entity.

P.A. 16-95 authorizes independent practice associations (IPAs) and certain “other business entities” to organize and join for-profit or nonprofit medical foundations. IPAs are organizations (1) that have only independent providers as owners or members or that are owned by a tax-exempt, state-wide professional medical membership association and controlled by independent providers and (2) that provide services to and on behalf of its members or owners. Only Connecticut-licensed physicians may own, control, or be a member in an IPA.