Descussing the alternate ftc analysis

Reference no: EM1363547

A physician-hospital organization (PHO) consists of 15 hospitals - with 2,247 staffed beds - and approximately 500 physicians. The PHO operates in a very large section of South Georgia, including the cities of Valdosta, Tifton, Thomasville, Moultrie, and Waycross. The PHOs' physician members represent approximately 90 percent of all physicians practicing in the region.

The PHO served as a vehicle through which competing hospitals and physicians could bargain collectively with health plans to obtain higher fees for themselves. The owner PHOs, member hospitals, and member physicians cancelled contracts with payers and informed them that the PHO would be the sole entity through which they would enter into payer contracts. To contract with the PHO, payers allegedly have had to accept the fixed physician fee schedule and fixed discount of no more than 10 percent off hospital list prices.

I need help to

1. Explain why this arrangement would be found "per se" illegal under the FTCs' analysis.

2. What kind of actions could be taken to restructure this arrangement to avoid a determination that it is per se illegal?

3. Discuss the alternate FTC analysis that is applied to such cases if they are suspect but not found to be per se illegal.

4. Scholarly references.

Reference no: EM1363547

Questions Cloud

What could they have been made worse off by the change : Sketch a diagram that illustrates what happened to the Bridgewaters' budget constraint. What could they have been made worse off by the change.

Expensing start-up costs : Recently, a group of university students decided to incorporate for the purposes of selling a process to recycle the waste product from manufacturing cheese.

Journalize treasury stock transactions : E3-4 On January 1, 2002, the stockholders' equity section of Ted Parge Company shows: common stock $5 par value $1,500,000, paid-in capital in excess of par value $1,000,000,

Write function compute square root together with prototype : Write a C++ function called compute together with its prototype that is passed 2 integers, A and B and returns the square root of A2+B2 ,as a double.

Descussing the alternate ftc analysis : Discuss the alternate FTC analysis that is applied to such cases if they are suspect but not found to be per se illegal.

Determining bond retirement : Prepare journal entries to record the following retirement. (Show computations and round to the nearest dollar). The December 31, 2010 balance sheet of Wolfe Co. included the following items:

Calculate forward rates : Given following spot rates for various periods of time from today, calculate forward rates from years one to two, two to three, and three to four.

Computing forward rate : Investing $1,000,000 for six months. Planning purchasing US T Bills at 1.810% six month rate, not yearly, matures in 26 weeks. Spot Exchange Rate is $1.00/Yen100,

Gains and loss in corporation : Does a corporation recognize a gain or loss when it distributes property as a dividend or in a redemption? My text just goes on and on regarding these topics. Is there a reference on the above that is more concise?

User Account

All Pages