This report appears in the February 2009 issue of DOTmed Business News

National-FTC settles price-fixing charges against two doctors' groups

The Federal Trade Commission (FTC) announced in a press release it has settled price-fixing charges against two separate doctors' groups. According to the press release, Independent Practice Associates Medical Group, Inc., doing business as AllCare IPA (AllCare) in Modesto, CA, and Boulder Valley Independent Practice Association (BVIPA) in Boulder County, CO, are parties to the settlement. According to the FTC, AllCare allegedly set fees for payers, and BVIPA allegedly refused to deal with payers, constituting illegal price-fixing.
The press release quotes David P. Wales, Acting Director of the Bureau of Competition: "When health care providers decide to pursue personal gain through unlawful price-fixing, consumers often are forced to either pay higher prices or forgo vital treatments they can no longer afford...The actions announced today against two separate physician groups should send a strong message that we will not let this conduct stand." According to the FTC complaints, AllCare and BVIPA restrained prices and other forms of competition in Modesto and Boulder County, and harmed consumers by increasing prices for physician services.

The Commission's proposed consent orders are for the purpose of eliminating the illegal anticompetitive conduct alleged in the complaints, with various applicable prohibitions and requirements. The orders will expire in 20 years. A consent agreement is for settlement purposes only and does not constitute an admission of a law violation.

State-New Jersey considers compassionate-use marijuana law

S119 - the Compassionate Use Medical Marijuana Act - was approved by the New Jersey Senate Health Committee at the end of 2008 and will now be considered for a Senate floor vote in 2009. The Assembly version A804 still needs to clear hearings in the Assembly Health Committee. The law protects "from arrest, prosecution, property forfeiture, and criminal and other penalties, those patients suffering from debilitating medical conditions, and their physicians and primary caregivers, if such patients engage in the medical use of marijuana." Similar laws passed in several other states, including Alaska, California, Colorado, Hawaii, Maine, Nevada, Oregon, Vermont, Washington, Montana and Arizona in the 2008 elections. The state laws are still in conflict with Federal laws prohibiting use of marijuana.

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