Study hits physician collective bargaining

The FTC and Justice Dept. report also calls for reconsideration of certificate-of-need programs and re-examination of subsidies in health care markets.

By Tanya Albert, AMNews staff. Aug. 9, 2004.

Government officials say more competition in the health care market and better information for consumers would improve quality and accessibility for Americans. In a new report, they offer physicians a little guidance on how to make that happen.

But they don't give as much advice or flexibility as some were hoping for in an era during which the health care industry has been under increasing federal antitrust scrutiny.

In a joint 300-plus page report issued July 23, the Federal Trade Commission and the Dept. of Justice reiterated their stance that collective bargaining by independent physicians would have a negative impact on competition. The report -- which addresses everything from hospitals to pharmaceuticals -- is the result of 27 days of joint FTC/Justice Dept. hearings on health care competition in 2002 and 2003.

"The concern is that they set the bar so high, physicians can't innovate," said Catherine Hanson, general counsel for the California Medical Assn., who testified during the hearings.

Under current law, only employed physicians and doctors in a handful of states that have passed their own physician collective bargaining laws can join together to negotiate with insurers without violating federal antitrust laws.

The American Medical Association disagrees with the FTC and is looking for support for the Health Care Antitrust Improvements Act of 2003, a House bill that would let doctors "plead their case" to get permission to negotiate collectively with insurers.