Houston doctors' group settles antitrust charges

The case is one of several in which the government has alleged physician abuse of a tool aimed at easing contract negotiations.

By Tanya Albert, AMNews staff. Jan. 12, 2004.

Another physician group has settled federal antitrust charges that arose from its use of the messenger model of dealing with health plans.

The case against Memorial Hermann Health Network Providers, Houston, is one of about a half dozen that the Federal Trade Commission has settled since the beginning of 2002. Settlements, which together involve tens of thousands of doctors, have occurred in Texas, California, Colorado, Maine, Missouri and elsewhere.

Memorial Hermann officials said the consent agreement with the FTC offers guidance on how to follow a confusing area of law.

"We are all getting some much-needed clarification [on an issue] that has frustrated physician networks for many years," MHHNP President Jim F. Waldron, MD, said in a statement.

The group, a nonprofit corporation with about 3,000 physicians, late last year agreed to stop exchanging information among physicians about any one doctor's willingness to deal with a health plan or other payer, or about the terms on which the physician is willing to deal with the payer. In addition, the group agreed not to enter any agreement between doctors to refuse to deal with a payer based on price or other significant competitive terms.

The consent agreement settles FTC charges that the group violated antitrust laws by fixing prices in contract negotiation with managed care companies. The group's actions increased costs for consumers, employers and health plans, the commission alleged. The consent agreement is not an admission of wrongdoing, and it does not involve sanctions or fines.