Price Fixing

Price touch on is defined as, an arrangement in which twain firms set up their pricing decisions. (OSullivan & Sheffrin, 2003). The scathe fixing case I chose was regarding brownish and Toland Medical aggroup. The alliance is a multi-specialty, for-profit San Francisco-based independent physicians familiarity (Rauber, 2004). Brown and Toland Medical Group was charged by the FTC with violating federal fair laws by fixing sets and otherwise cost under(a) which it would resolution with insurance companies for preferred provider make-up (PPO) enrollees. The FTC contends that the comp whatever had physicians reserve on prices and terms they would enter contracts with heathland plans or third-party payers. The comp whatever also allegedly told doctors to terminate any pre-existing contracts. then(prenominal) they asked others to join in their price-fixing arrangement. This would raise prices for physician work in their hometown of San Francisco. The FTC propos ed a consent agreement that bars Brown and Toland from: * Negotiating with any payer on behalf of any physician.

* Dealing or refusing to require with any payer based on price or other terms * Jointly determining price or other terms upon which any physician deals with payers other stipulation of the consent agreement is that Brown & Toland was to give out the FTC at least 60 days before immersion into any arrangement with physicians or contacting any payer, except for those arrangements under which Brown & Toland give be paid a capitated amount, and contains standard recordkeeping provisions to back up the FTC in observe th e respondents compliance. (www.ftc.gov) Re! ferences: OSullivan, A. & Sheffrin, S.M. (2003). Economics: Principles and Tools. Upper Saddle River, NJ: Pearson study Rauber, C. (2004). San Francisco Business Times: Brown & Toland settles price- fixing probe. Retrieved October 19, 2006 from: http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2004/02/09/daily11.html federal Trade equip Website (2003). San Franciscos Brown & Toland Medical Group Settles FTC... If you want to get a full essay, order it on our website: BestEssayCheap.com

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