BROWN & TOLAND: FTC CONDUCTS ANTITRUST INVESTIGATION
Brown & Toland, the San Francisco Bay Area's most powerfulThis is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
doctors group, "is being investigated by the Federal Trade
Commission for possible antitrust violations," San Francisco
Business Times reports. According to Brown & Toland CEO Dr.
Michael Abel, the "FTC has initiated a 'non-public inquiry,' one
step down from a formal investigation." The FTC is reportedly
investigating "allegations that the 1,250-doctor group violated
antitrust regulations in its aggressive assault on the San
Francisco market." The doctors group "admits patients primarily
to California Pacific Medical Center and UC San Francisco Medical
Center, and its close relationships with the two hospitals gives
it tremendous leverage with HMOs and other insurers," San
Francisco Business Times reports. There are "approximately 350
primary care doctors and 900 specialists" in the group, which
"has contracts with 14 HMOs covering 178,000 managed care
enrollees."
JUST CHECKING AROUND
The FTC has reportedly contacted a number of area HMOs and
other health care groups as part of the investigation, which is
apparently focusing on the allegation that Brown & Toland "has
signed up too many of the doctors in San Francisco, especially
primary care physicians." The investigation is also reportedly
looking into charges that the doctors group "is trying to demand
exclusivity" in contracts with HMOs. San Francisco Business
Times reports that "[d]ue to its dominant position ... Brown &
Toland regularly commands premiums of 20 to 30 percent above
standard Bay Area capitation rates for HMOs." Abel said that
Brown & Toland is providing the FTC with the requested
information. The FTC had no comment (Rauber, 9/22 issue).