Santa Fe provider network goes unchallenged by the DOJ.
After careful consideration of possible anticompetitive harm and payer reaction, the Department of Justice has chosen not to challenge as unlawful a provider-controlled, nonexclusive physician network in Santa Fe, New Mexico, even though the network will include 70 percent of the area's pediatricians. Reasons for the DOJ's decision include evidence of substantial risk sharing by the physician members, an arrangement by the network to provide a different compensation system for non-member participating physicians, and the pediatricians' promise that they will participate in the network on a nonexclusive basis. In addition, the member pediatricians will be a small minority of the primary care physicians whose compensation will be paid out of one fixed revenue pool. The DOJ's decision thus signals support for a provider network model for smaller communities.
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Gardner Carton & Douglas, Chicago, IL., USA.
D016363:Antitrust Laws; D002204:Capitation Fee; D004465:Economic Competition / Q000331:legislation & jurisprudence; D006077:Government Agencies; D006759:Hospital-Physician Joint Ventures / Q000191:economics / Q000331:legislation & jurisprudence* / Q000458:organization & administration; D009516:New Mexico; D010372:Pediatrics; D012306:Risk; D000078329:Workforce