Physicians Joint Ventures Guidelines Released
August 28, 1996
The U.S. Department of Justice and the Federal Trade Commission have released a set of guidelines for physician joint ventures. The new guidelines incorporate important points for which organized medicine, led by the American Medical Association, has lobbied for over three years. The guidelines represent a significant step forward for physicians, although not a total victory for physicians. Under the new guidelines:
Please check back for more information on these new regulations.
- For the first time noncapitated physician ventures will be judged by the rule of reason rather than being viewed as per se illegal when a single price is agreed upon. The new statement says "it is unlikely" that joint ventures in competitive markets would raise substantial antitrust concerns.
- Networks of physicians as large as 50% will be viewed as reasonable in competitive markets if they are nonexclusive and meet standard joint venture criteria.
- The agencies acknowledge for the first time that the market for medical services has significantly changed and that there are substantial benefits of physician joint ventures that patients should be given the option of selecting.
[Return to Federal Legislation Index]