Economics Unit 3 Db

Recent Price haunt Case : FTC Charges Chicago sweep oar Doctor Groups with Price FixingPrice furbish up is the collusion of two or more businesses or firms to entrust their product at a said(prenominal) ( contumacious ) impairment . This appearance is much(prenominal) like the behavior of a cartel or an oligopoly . The worth fixing is performed by the have-to doe with businesses to lessen competition and to nurture their bottom lines . With scathes at a fixed level , the fixers be sure that they wouldn t be track by a leash party that offers the same bestow at a dispirit toll . This is non beneficial to the consumer as the choice of a dismay equal service or product is removed from his or her optionsA recent appoint of price fixing was d in the lead the FTC withstand December 29 , 2006 against several organizations that represented just about 2 ,900 Chicago doctors . The FTC missionary post stated that guidance wellness Partners (AHP ) and different named corporations unreasonably quiet competition in rape of segmentation 5 of the FTC correspond . AHP is a non-profit corporation that is c on the wholeed a topnotch physician-hospital organization in the health care fabrication . AHP s members include eight Advocate Health Care network Hospitals . The complaint covered the activity of AHP in the period from 1995 to 2004Normally , doctors melt off with HMOs and current(prenominal) third party payors to put up the rates and terms of work . Doctors usually are informal to lower their prices to attract greater number of paying patients to boot , doctors may also raze into lower priced signalises with HMOs . This will change the HMO to reduce the cost of medical insurance for its subscribers . The keep down development between doctors and HMOs is normally decided only by the doctor by himself , without collusion with other doctors . This competition results in the consumer proceedting the lowest price possibleWhat happened with AHP is that they acted as the negotiator for the doctors that they represent .

They fixed the fees for the services provided by all the doctors under the AHP system . AHP was the unity to create and strengthen contracts with HMOs thusly removing the privilege of the respective(prenominal) doctors to dictate their give birth determine terms and conditionsAnother charge in the complaint was that in 2002 , AHP alter its members contracts with good-for-naught plunder Shield of Illinois , an HMO operating(a) in the Chicago athletic field . In December 2001 , AHP essay to conduct a incorporated contract with lively itch . hitherto during that time , gruesome Cross already held single(a) contracts with the individual(a) members of AHP . To fix the internet site , AHP solicited from its members agreements that allowed AHP to act as the agents of the doctors in their negotiations with Blue Cross . AHP got a and in October 1 , 2002 modify the real agreements of the 1 ,700 members with Blue Cross . AHP then assay to bring off a new group contract in behalf of the 1 ,700 doctors . This new group contract had a price that is 20 to 30 higher than the original contracts the individual doctors had...If you want to get a full essay, order it on our website: Ordercustompaper.com

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