April 7, 2008
The DOJ and the FTC rarely join antitrust suits unless there is the likelihood of merit
Analysis of:
DoJ joins whistle-blower suit against OH MDs, hospital | www.fiercehealthcare.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Implications: From the rather strick interpretration of Peter Stark's antitrust principles complied with mostly in the 1980's we have entered an era where rampent greed and highly sophisticated antitrust relationships exists in nearly of all hospitals especially with their own "dedicated" (read as owned) multispecialty group or with the traditional hospital based groups or high earners for the hospitals such as orthopedists, cardiologists, pathologists, anesthesiologists and imagining specialities (radiology for the most part). Allowing (if the report is correct) the most compensated specialists in Medicine to bill for procedures performed in the hospital setting (technical component) would raise eyebrows of Mr. Stark and the DOJ and FTC (whichever appropriate). These veiled relationships have contributed greatly to the rate of inflationary growth of medical care and is a powerful source opposed to the use of evidence based medicine to guide indications for high priced diagnostic procedures.
Analysis: Lack of prosecution of obvious antitrust relationships within providers of all segments has led to Medical inflation in that the "greed factor" for self referral and lowered threshold of indications for diagnostic proceedures are reduced when one has a vested financial interest in the diagnostic facility/program. Not only does affordability of medical care suffer, so does it put a financial strain on those physicians who are under paid for time/cost of eductation and responsibility for the Medical Home (Pediatricians, Family Physicians, General Internists).
And lastly. it continues to depreciate the words "medical professional" and moves medicine further towards a transactional "business" where the patient does not in fact come first before the financial benefits of the provider.
Consolidation of the segments of Providers (mostly hospitals, to a much lesser extent physicians) and Payers has all but elimitated free market principles/dynamics from our health care "system."
Analysis: Lack of prosecution of obvious antitrust relationships within providers of all segments has led to Medical inflation in that the "greed factor" for self referral and lowered threshold of indications for diagnostic proceedures are reduced when one has a vested financial interest in the diagnostic facility/program. Not only does affordability of medical care suffer, so does it put a financial strain on those physicians who are under paid for time/cost of eductation and responsibility for the Medical Home (Pediatricians, Family Physicians, General Internists).
And lastly. it continues to depreciate the words "medical professional" and moves medicine further towards a transactional "business" where the patient does not in fact come first before the financial benefits of the provider.
Consolidation of the segments of Providers (mostly hospitals, to a much lesser extent physicians) and Payers has all but elimitated free market principles/dynamics from our health care "system."
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