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News in brief - June 30, 2003


Pa. house acts on malpractice award cap - Texas physician group settles FTC charges

Pa. house acts on malpractice award cap

Pennsylvania lawmakers in June took the initial step toward enacting a cap on noneconomic damage awards in medical malpractice cases. The Pennsylvania House voted 119-76 for a bill that would let voters decide if they want to make a change in the constitution that would allow caps.

The measure has to pass the House and Senate in two consecutive sessions and then pass a public vote. The House action was the first vote in that process. Pennsylvania is one of 18 states the American Medical Association identifies as being in a medical liability crisis.

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Texas physician group settles FTC charges

Southwest Physician Associates, a nonprofit corporation that represents about 1,000 physicians in the Dallas-Fort Worth area, in June settled Federal Trade Commission charges that its collective bargaining produced decreased competition and increased prices.

The FTC alleged that instead of acting as a messenger for the physicians, the corporation often negotiated on price and other competitive items.

A proposed consent order prohibits SPA from exchanging or facilitating information about a physician's willingness to deal with a third-party payer, or the terms or conditions under which the doctor is willing to deal with the payer. A consent agreement is not an admission of wrongdoing. More information can be found online (www.ftc.gov/opa/2003/06/sourthwestphys.htm).

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Copyright 2003 American Medical Association. All rights reserved.
 
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