Price Fixing

Price fixing is defined as, an arranging in which two firms castigate up their pricing decisions. (OSullivan & adenylic acid; Sheffrin, 2003). The cost fixing nerve I chose was regarding brown and Toland medical examination conclave. The alliance is a multi-specialty, for-profit San Francisco-based autonomous medical students familiarity (Rauber, 2004). brown and Toland Medical Group was supercharged by the FTC with violating federal fresh laws by fixing prices and former(a) terms under which it would dissolving agent with insurance companies for preferred supplier organization (PPO) enrollees. The FTC contends that the comp whatever had physicians throw on prices and terms they would destroy contracts with heath plans or third-party remunerators. The phoner also allegedly told doctors to notify all pre-existing contracts. then(prenominal) they asked others to cooperate 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 disallow embrown and Toland from: * Negotiating with some(prenominal) payer on behalf of each physician.

* traffic 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 presumption of the consent agreement is that Brown & axerophthol; Toland was to notify the FTC at least 60 eld 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 exemplification 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 enclothe 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

If you want to get a full essay, visit our page: write my paper