Government
South Carolina physician group settles price-fixing charges
NEWS IN BRIEF — Posted March 21, 2005
A South Carolina physician-hospital organization earlier this month settled Federal Trade Commission charges that it was fixing prices on behalf of its member doctors.
Preferred Health Services, which consists of more than 100 doctors and Oconee Memorial Hospital, based in Seneca, S.C., signed a consent order prohibiting it from negotiating collectively for its members, according to the FTC. The commission alleged that Preferred Health had acted as a "contracting representative" for its member physicians, who make up about 70% of the independently practicing physicians in the region.
The consent order prohibits the organization from doing any negotiating on behalf of physicians and helping doctors exchange information about how to deal with certain insurers. The order does not prohibit the organization from arranging "legitimate joint contracting arrangements among competing physicians."
Preferred Health Services did not admit to any wrongdoing.
The public can comment on the settlement until March 30. The FTC then will vote on whether to make it final.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2005/03/21/gvbf0321.htm.
