Profession

Georgia physicians sue over rental network practices

NEWS IN BRIEF — Posted Sept. 22, 2008

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The Medical Assn. of Georgia in August joined two physician plaintiffs in a class-action lawsuit targeting a pair of health plans over their use of rental networks.

Doctors alleged Private Healthcare Systems Inc., a PPO, unlawfully sold, rented or leased access to its physician network to Capella Group Inc. and other discount health programs that did not directly contract with doctors for their medical services. Doctors said they did not agree to such practices under their contracts and the health plans unfairly profited from the rental networks, according to the complaint filed in U.S. District Court for the Southern District of Georgia.

Private Healthcare Systems, acquired by New York-based MultiPlan Inc., declined to comment on the litigation. Capella Group, part of Access Plans USA in Irving, Texas, could not be reached for comment.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2008/09/22/prbf0922.htm.

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