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Healthcare Financial News - FTC Charges Physician Groups with Price Fixing

Healthcare Financial News


Monday, August 28, 2006
FTC Charges Physician Groups with Price Fixing

The Federal Trade Commission has alleged that two Kansas City independent practice associations (New Century Health Quality Alliance, Inc., and Prime Care of Northeast Kansas, LLC) and 18 physician practices engaged in anticompetitive conduct by refusing to deal with healthcare plans, except on collectively agreed-upon terms, including price. According to the FTC’s complaint, the 127 primary care physicians who are members of the IPAs agreed to refuse to deal, and refused to deal, with health plans regarding fee-for-service contracts with individual physician practices. They also acted together to increase their bargaining power with payers and attempted to force payers to accept the terms agreed upon through the IPAs on behalf of their combined membership. The FTC’s complaint charged that their actions unreasonably restrained competition. In settling the FTC’s charges, they will refrain from engaging in such anticompetitive conduct in the future. The commission is accepting public comment on the consent order for 30 days, after which it will decide whether to make it final.

posted on 8/28/2006 8:34:26 AM (CST)  Permalink