Price Fixing :: Business

Price fixing is defined as, an arrangement in which two firms coordinate their pricing decisions. (OSullivan & Sheffrin, 2003). The footing fixing case I chose was regarding dark-brown and Toland aesculapian 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 other term 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 heath plans or third-party payers. The company overly allegedly told doctors to terminate any pre-existing contracts. Then they asked others to join in their price-fixing transcription. This would raise prices for physician services in their home town San Francisco. The FTC proposed a assume agreement that bars Brown a nd Toland fromNegotiating with any payer on behalf of any physician. Dealing or refusing to deal 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 Brown & Toland to notify the FTC at least 60 days before entering 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 assist the FTC in monitoring the respondents compliance(www.