This is the first 1,000 characters of 323 words (1.29 pages) in the essay titled Price Fixing
Price fixing is defined as, “an arrangement in which two firms coordinate their pricing decisions.” (O’Sullivan & Sheffrin, 2003). The price fixing case I chose was regarding Brown and Toland Medical 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 terms 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 also allegedly told doctors to terminate any pre-existing 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 ba...
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