Medsouth Case Summary

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Marie, had to conduct some additional research.
Edwards Richards from the University of Louisiana Law Center, highlights an interesting point:
“MCOs are legally considered insurance companies, however, and they have McCarron-Ferguson immunity from federal antitrust laws. [15 U.S.C. § 1011 (1996).] They cannot be sued for most antitrust activities” (Richards, 2009)
Another interesting tidbit of information that is related to the topic, originates from the FTC or Federal Trade Commission, Advisory Opinion to Miles (02-19-02).
The ruling is focused on a review by the Federal Trade Commission in regards to a course of action of MedSouth in the State of Colorado to partially integrate some of its physician members. The ruling highlights relevant facts in regards to the depth of the MedSouths network, that the Federal Trade Commission had to review.
…show more content…
“If, however, MedSouth's member physicians are able to use collective power to force payers to contract with the network or to pay higher prices, then absent evidence that substantial efficiency benefits outweighed likely anticompetitive effects, we likely would recommend that the Commission bring an enforcement action” (Brennan, 2002)
“This office will monitor MedSouth's operations and the behavior of its physician members for indications that the proposed conduct is resulting in significant anticompetitive effects” (Brennan, 2002).
So, “yes” there may be an occurrence of anti-trust violations “if” the organization does not adhere to specific requirements that they must conform too during their business relationships, or

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