Government
New Mexico group settles price-fixing charges
NEWS IN BRIEF — Posted June 28, 2004
A New Mexico IPA in June settled Federal Trade Commission charges that it was involved in price-fixing. Southeastern New Mexico Physicians IPA, based in Roswell, signed a consent order that includes a provision that prohibits employees from negotiating any agreements on behalf of IPA physicians, according to the FTC.
The consent order also bars physicians from making agreements to negotiate with payers on any other doctor's behalf. Physicians also cannot discuss terms of an agreement or agree together whether they will deal individually with any payer.
In its original complaint, the FTC alleged that the 68 physicians who comprise the IPA decided not to deal individually with payers and instead sent two employees to negotiate price and other contract terms with health plans.
The FTC alleged that the employees brought the contracts to the IPA's managed care contract committee and board of directors. If they approved the contract, the general membership then voted on whether the IPA should accept the contract, according to the FTC. The commission alleged that the arrangement amounted to collective bargaining, something independent physicians are not allowed to do under federal law.
By settling the charges, the IPA did not admit that it broke the law or did anything wrong. The FTC voted to accept the proposed consent agreement. The public is able to comment on it through July 6. After that, the commission will decide whether to make the agreement final.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/06/28/gvbf0628.htm.
