Question

Peeple's Clinic is a group of 20 primary care physicians in Peepleville, which is the largest in town. They practice together as a partnership in a building they have owned for 10 years. They want to begin offering their services in a managed care format by contracting with employers and insurers. Depending on the contract, they might receive discounted fee-for-service, capitation payments, or some combination of the two. They also plan to include 5-10 specialists in common specialties (cardiology, oncology, etc.) in order to make their network more comprehensive. These specialists will not become partners. Instead, they will be independent contractors in an arrangement that allows Peeple's Clinic to negotiate managed care contracts on their behalf. Peeple's Clinic plans to form a negotiating team composed of 2 of the primary care physician partners, and 2 of the contracting specialists. Each doctor will agree to be bound by the payment terms negotiated by this team. Peepleville is a medium-sized city (200,000 population) surrounding by rural counties. The city has about 30 additional primary care physicians in 3 other practice groups of about 10 each. Peepleville has about 30 specialists from the relevant specialties, who practice in about 10 groups with about 3 doctors each, with about 2 groups for each specialty. In the surrounding counties, there are about 25 additional primary care physicians, most of whom are in solo practice. There are virtually no other specialists in these counties. Peeple's Clinic wants your advice primarily on the antitrust implications of this arrangement. Do you think it is safe, and are there changes or suggestions you would recommend to make it safer? In addition, briefly discuss whether there are any other (non-antitrust) legal issues they should be concerned about.

Answer 1

No, it is Not at all Safe. I would like To recommend some Changes to make it Safer would be that all the Physicians should not join this group System as It Caused Complete loss of Individuality/ Solo and Created and Environment where all Physicians are bound to agree for the payment.

Yes, there Exists Legal Issues concerned with this Peeple's Clinic As There Occured Monopoly in the Peepleville as All the Physicians Joined this Grouping System . So The Doctors Must be Concerned for this .