--
Richard Chudacoff, MD
Chudacoff Obstetrics & Gynecology, PLLC
15200 Southwest Freeway, #270
Sugar Land, TX 77478
Tel: 281-277-3900
Fax: 281-277-3901
rchudacoff@mylinuxisp.com
Richard.Chudacoff@obgyn.net
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-----Original Message-----
From: ob-gyn-l@obgyn.net [mailto:ob-gyn-l@obgyn.net]On Behalf Of art
fougner, md
Sent: Friday, September 22, 2000 10:18 AM
To: Multiple recipients of list OB-GYN-L
Subject: GEN: a level playing field?
this from today's Reuters -
Alaska physicians settle price-fixing charges with the FTC
Last Updated: 2000-09-21 16:01 EDT (Reuters Health)
WESTPORT, CT (Reuters Health) - A group of Alaska physicians has settled
charges with the Federal Trade Commission (FTC) that it fixed prices and
refused to deal with payers who would not agree to the group's
collective demands.
The FTC also charged the 86 member physicians of the Alaska Healthcare
Network (AHN) with acting in concert to prevent other health plans from
penetrating the Fairbanks market. For patients, the scheme resulted in
fewer physician options and higher prices, the FTC said.
"AHN and its members engaged in a conspiracy to set prices and hamper
the entry of managed care plans into the Fairbanks market, resulting in
higher prices and limited choices for physician services," Richard G.
Parker, director of the FTC's Bureau of Competition, said in a press
release announcing the settlement.
According to the FTC's complaint, the AHN described itself to members as
a vehicle allowing them to band together to bargain as a group with
payers. When it was formed in 1996, a wide range of health plans were
seeking contracts with Fairbanks physicians.
AHN negotiated with at least seven payers using a fee schedule based on
members' current prices, the complaint notes. With one exception, all
of the talks ended with no resolution, it says. Furthermore, the FTC
asserts that the network refused to transmit contract offers to its
members unless it was satisfied with the negotiation and that members
were advised to deal with payers only through AHN to get the best prices
and terms.
Under terms of the proposed settlement announced on Wednesday, AHN
physicians would be prohibited from acting in concert to refuse to deal
with plans or to restrict other physicians' ability to negotiate with a
health plan. The order does not prevent AHN from entering "legitimate"
joint ventures permitted under federal antitrust guidelines, such as
risk-sharing or clinically integrated arrangements.
The FTC voted 5-0 in favor of the proposed settlement, with two
commissioners issuing a separate statement on a portion of the proposed
remedy. The commissioners oppose a proposed cap on the number of
physicians who would be permitted to participate in a legal joint
venture.
-Westport Newsroom 203 319 2700
any comments?
art
--
art fougner, md
A series of 1000 cases begins with but a single anecdote.
