Anti-Competitive Behavior: The Case Of Allcare Ipa

Free handle military commission (FTC). The briny role of FTC, created in 1914, is outlined in its website Federal muckle Commission (http//www. ftc. gov/ftc/about. shtm) which states that It is the only federal action with both consumer protection and competition legal power in broad sectors of the economy. As such(prenominal)(prenominal), it pursues vigorous and effective law enforcement, advances consumers interests. The FTC was in the first place created to prevent unfair methods of competition in commerce, but through the years, its role has widened to book binding consumer protection in broad terms.It essential(prenominal) be noted that FTCs say-so of argument promotes and protects vigorous competition by seeking out and challenging anticompetitive exculpate in the marketplace and promotes competition in industries where consumer impact is high, such as wellness vexation ((http//www. ftc. gov/ftc/about. shtm). The very nature of wellness care, a very basic need, ex plains why put ons in this field is a study concern for FTC.AllCare IPA is comprised of independent physicians that hurl get together together to pass on a blanket(prenominal) network of multiple specialties, developed specifically for the patients health plan. (http//www. allcareipa. com/faqs/default. aspx). Its main office is found in Modesto, California. Since its formation, AllCare and its physicians have urgeed with Preferred Provider Organizations (PPOs) to provide fee-for service care. In PPO arrangements, the remunerationer compensates the physicians for function provided under agreed-upon fee schedules.Such arrangements may or may not entail financial risk-sharing or clinical integration. ((FTC Settles Price-Fixing Charges Against Two divulge Doctors Groups). In February 2009, FTC found AllCare IPA guilty of expenditure-fixing and profaned anticompetitive laws by orchestrating and carrying out agreements among their members to go down, and threaten to refuse, to comport with insurance providers, unless they raised the fees paid to the groups doctors.FTC command that AllCares conduct in telescope fees for payers and refusing to train with payers constitutes illegal price-fixing, and violates federal law. In addition, the FTC contends AllCare engaged in either performance that might justify collective agreements on the prices its members would accept for their services. The groups physicians did not share financial risk in providing medical services, did not collaborate in all design to monitor and modify clinical practice patterns or otherwisewise integrate the deliverance of their services.According to the FTC, between 2005 and 2006, AllCare acted to restrain competition on fee-for-service contracts by facilitating, entering into, and implementing agreements to fix the prices and other contract terms with PPO payers to engage in collective negotiations over the terms and conditions of traffic with such payers and to have mem bers refrain from negotiating with such payers on terms other than those O.K. by the group. . (FTC Settles Price-Fixing Charges Against Two Separate Doctors Groups). Penalties against AllCare.AllCare has been proscribe to enter into similar agreements because according to FTCs Acting Director of the Bureau of Competition David Wales, when health care providers decide to dish personal gain through illicit price-fixing, consumers are often forces to either pay higher prices or forgo springy treatments they can no longer give. (FTC Settles Price-Fixing Charges Against Two Separate Doctors Groups). The Commissions proposed consent sound outs are designed to pass away the illegal anticompetitive conduct alleged in the complaints.They would prohibit AllCare from entering into or facilitating agreements between or among physicians 1) to negotiate on behalf of whatsoever physician with any payer 2) to refuse to deal, or threaten to refuse to deal, with any payer 3) to designate th e terms, conditions, or requirements upon which any physician deals, or is willing to deal, with any payer, including, but not limited to price terms 4) not to deal one by one with any payer, or not to deal with any payer through any arrangement other than one involving AllCare, respectively.The order prohibits AllCare from exchanging information among physicians concerning whether, or on what terms, to contract with a payer and from encouraging, suggesting, advising, pressuring, inducing, or attempting to fetch anyone into any actions otherwise prohibited by the order. I believe that there must always be balance in any decision that affects two opponent parties, in this case the doctors and their patients.While FTC must protect the welfare of the consumers and must do so vigorously and vigilantly, it must also deplete into account the needs of the doctors to protect themselves and their livelihoods against threats from the equivalent persons who come to them for treatment. Alre ady, many doctors are reject to practice their profession for fear of lawsuits, such as medical malpractice, and the tremendous toll implications these lawsuits bring. I agree that physicians practice must be subject to regulation as it is prone to abuse.However, while medical care is a very basic commodity and patients, as consumers, have every responsibility to be protected against unjust and flagitious practices in the health care industry, so do Doctors have rights to protect themselves and their livelihoods. I personally believe that that FTC ruling was as well as biased in favor of the consumers/patients. yet of course, this is America, and the customer is always king. Works Cited AllCare IPA ofttimes Asked Questions. 2005.6 horrible 2009. (http//www. allcareipa. com/faqs/default. aspx) Copy of the FTC Decision on AllCare. February 2009. August 6, 2009. (http//www. crowell. com/pdf/ManagedCare/Independent-Practice-Associates-Medical-Group. pdf) Free Trade Commission. F ree Trade Commission. 6 August 2009. (http//www. ftc. gov/ftc/about. shtm) FTC Settles Price-Fixing Charges Against Two Separate Doctors Groups. 24 celestial latitude 2008. 6 August 2009. (http//www. ftc. gov/ftc/about. shtm)