Government
N.C. physician-hospital group settles antitrust charges
NEWS IN BRIEF — Posted Sept. 13, 2004
A North Carolina physician-hospital organization and 10 of its physicians in August reached a settlement with the Federal Trade Commission. The agreement resolves accusations that the group improperly had used the messenger model for contracting with payers in a way that fixed prices and increased consumers' health care costs.
Piedmont Health Alliance is one of more than a dozen physician groups that have settled price-fixing allegations since 2000. Federal antitrust laws prohibit independent physicians from collectively bargaining. The government alleged that Piedmont's 450 physician members signed agreements binding them to participate in all contracts that Piedmont entered into with insurers and other third-party payers and agreed to accept only Piedmont-negotiated prices.
Under the settlement, Piedmont and the 10 named physicians, who were voting members of the organization's board, cannot facilitate agreements among doctors in the area and cannot negotiate with payers on any physician's behalf. The settlement is not an admission of guilt.
"We have been dealing with the FTC for more than two years, and it was important to put this issue behind us," Piedmont CEO Sharon J. Alvis said in a statement.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/09/13/gvbf0913.htm.
