Aggressive Antitrust Enforcement Activity Against Physician Groups Continues in 2005

The Federal Trade Commission (FTC) continues to take aggressive action to prevent non-integrated groups of physicians, using the so called "messengers model," from negotiating collectively with payors.

Although the FTC has stated that the use of a messenger model to facilitate negotiations does not necessarily amount to an antitrust violation, attempts to employ this approach to avoid the bar on collective contracting continues to receive substantial scrutiny and can result in antitrust enforcement actions. As recently as March 2, 2005, the FTC targeted a physician hospital organization (PHO) located in South Carolina (In Re Preferred Health Services). In its complaint, the FTC alleged that the PHO's collective negotiation of reimbursement rates on behalf of its