Government

Illinois physician group settles FTC price-fixing charges

NEWS IN BRIEF — Posted May 2, 2005

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A Chicago-area physician group has agreed not to bargain collectively on behalf of its members as a result of a settlement of price-fixing charges announced in April by the U.S. Federal Trade Commission. A consent order prohibits Evanston Northwestern Healthcare from negotiating with insurers on behalf of independent physicians affiliated with the organization. The order does not prohibit the group from participating in a "qualified risk-sharing joint arrangement" or a "qualified clinically integrated joint arrangement."

Such arrangements must satisfy conditions of interdependence, risk-sharing and efficiency gains. Evanston Northwestern Healthcare did not admit to any wrongdoing.

The settlement does not affect the FTC's complaint alleging that Evanston Northwestern's acquisition of Highland Park (Ill.) Hospital was illegal and anticompetitive. A trial on those issues is pending.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2005/05/02/gvbf0502.htm.

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