Price Fixing

Price fixing is defined as, an concord in which two firms square up up their pricing decisions. (OSullivan & ampere; Sheffrin, 2003). The hurt fixing grimace I chose was regarding brownish and Toland checkup company. The alliance is a multi-specialty, for-profit San Francisco-based single-handed medical students familiarity (Rauber, 2004). brownish and Toland Medical Group was charged by the FTC with violating federal honest laws by fixing prices and some other name under which it would resolvent with insurance companies for preferred provider organization (PPO) enrollees. The FTC contends that the comp whatever had physicians halt on prices and terms they would recruit contracts with heath plans or third-party payers. The corporation also allegedly told doctors to cease all pre-existing contracts. then(prenominal) they asked others to conjunction in their price-fixing arrangement. This would raise prices for physician services in their hometown of San Francisco. The FTC proposed a consent agreement that debar brownness and Toland from: * Negotiating with all payer on behalf of whatsoever physician.

* transaction 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 Another term of the consent agreement is that Brown & Toland was to notify the FTC at least 60 years before entering 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 touchstone recordkeeping provisions to back up the FTC in monitoring the respondents compliance. (www.ftc.gov) References: OSullivan, A. & Sheffrin, S.M. (2003). Economics: Principles and Tools. Upper Saddle River, NJ: Pearson Education 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 check Website (2003). San Franciscos Brown & Toland Medical Group Settles FTC... If you want to get a full essay, order it on our website: Ordercustompaper.com

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