Re: Health Care

From: DoctorJoe@aol.com
Tue Jul 28 11:05:34 2009


In a message dated 7/28/09 8:11:24 AM, evsono@pipeline.com writes:

> With the 1970's Supreme Court decision Goldfarb v Va State Bar,
> physicians basically lost the ability to bargain collectively.
>

Actually, what Goldfarb did was to get the Court to opine that Congress did not intend any sweeping "learned profession" exclusion from the Sherman Act. The case was about lawyers, not doctors.

The lawyers running a title examination scam wanted to say they weren't violating the anti-trust laws because they were a "learned profession," not part of "commerce." The Court said title exam work is a service, and the exchange of such a service for money is "commerce" in the common usage of that term.

So the upshot is, "learned professions" can be prosecuted under the anti-trust laws for price-fixing and other anti-competitive activities. Here, it wasn't just an informal (or even formal) association of title attorneys. The schedule and its enforcement mechanism constituted price fixing since the record showed that the schedule, rather than being purely advisory, operated as a fixed, rigid price floor. The fee schedule was enforced through the prospect of professional discipline by the State Bar, by reason of attorneys' desire to comply with announced professional norms, and by the assurance that other lawyers would not compete by underbidding. In other words, the State Bar was "in on it" via the disciplinary process.

Goldfarb v. Virginia State Bar, 421 U.S. 773 (1975).

I wonder how many MEDICAL boards are "in on it?" I'm absolutely sure a lot of "disruptive physician" cases are simply anti-competitive actions masked in administrative/quality assurance trappings. Et tu, Richard?

Joe P.

bcd=JulyExcfooterNO62)





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