Price Fixing :: Business

Price ameliorate is defined as, an arrangement in which 2 firms coordinate their pricing decisions. (OSullivan & Sheffrin, 2003). The price fixing case I chose was regarding embrown and Toland checkup Group. The company is a multi-specialty, for-profit San Francisco-based independent physicians association (Rauber, 2004). brown and Toland Medical Group was charged by the FTC with violating federal antitrust laws by fixing prices and another(prenominal) impairment under which it would contract with insurance companies for preferred provider organization (PPO) enrollees. The FTC contends that the company had physicians agree on prices and terms they would enter contracts with heathland plans or third-party payers. The company also allegedly told doctors to terminate any pre-existent contracts. Then they asked others to join in their price-fixing agreement. This would raise prices for physician services in their home town San Francisco. The FTC proposed a consent agreement that bars embrown and Toland fromNegotiating with any payer on behalf of any physician. Dealing or refusing to argue with any payer based on price or other termsJointly determining price or other terms upon which any physician deals with payersAnother stipulation of the consent agreement is that chocolate-brown & Toland to notify the FTC at least 60 days before come in into any arrangement with physicians or contacting any payer, except for those arrangements under which Brown & Toland will be paid a capitated amount, and contains standard recordkeeping provisions to avail the FTC in monitoring the respondents compliance(www.