may create efficiencies that justify joint price negotiations. However, because Southwest Health’s doctors undertook no such integration, the agreements produced no beneficial efficiencies for consumers, according to the FTC. The order settling the FTC’s com-
plaint stops Southwest Health’s allegedly anticompetitive conduct, while allowing it to continue to engage in legitimate joint conduct. To do this, the FTC order bars Southwest Health from entering into or facilitating agreements among physicians to:
• Negotiate on behalf of any physician with any insurer;
• Negotiate with any physician as an insurer;
• Deal, refuse to deal, or threaten to re- fuse to deal with any insurer; and
• Avoid dealing individually with any insurer, or not dealing with any insur- er, except through Southwest Health.
In addition, the order prohibits Southwest Health from facilitating the exchange of information between phy- sicians concerning the terms on which they will contract with insurers. The proposed order does not preclude South- west Health from engaging in conduct that is reasonably necessary to form or participate in legitimate “qualified risk- sharing” or “qualified clinically integrat- ed” arrangements, as defined in the or- der. It also does not prohibit agreements that only involve doctors who are part of the same medical practice. Finally, the order contains notifica-
tion provisions that will allow the FTC to monitor Southwest Health’s compliance with its terms and will allow insurers to terminate any contracts, without penalty, entered into with the network since its alleged restraint of trade began in 2000. The order will expire in 20 years. To view the final order, visit www.ftc .gov/os/caselist/0910013/110715south westdo.pdf.
TMLT cuts rates again
For the ninth consecutive year since tort reform, the Texas Medical Liability Trust (TMLT) is cutting its liability insurance premiums. The TMLT Board of Governors ap-
proved an average 6.9-percent cut in liability premiums and an 18.5-percent dividend for renewing policyholders. TMLT said while the cut, effective
Jan. 1, averages 6.9 percent, the reduc- tion will vary by specialty and the geo- graphic location of a physician’s medical practice. The combined rate reduction and dividend will save policyholders nearly $35.8 million in 2012 premiums, TMLT said. “Physicians work within an environ-
ment of decreasing reimbursements and increasing operating costs. We hope these reductions and dividends will help physicians as they help patients,” said TMLT President and Chief Executive Of- ficer Charles R. “Chip” Ott Jr. TMLT has reduced rates for Texas physicians every year since the legisla- ture passed health care liability reform in 2003. The 2012 rate reduction saves TMLT policyholders about $10.4 million. In addition, TMLT has declared a policy- holder dividend seven times since then. The latest rate cut and dividend means its policyholders will have saved $745.5 million since tort reform, TMLT says. Physicians interested in applying for
TMLT coverage or who would like more information about how the rate decrease and dividend will benefit them may call the TMLT Sales Department at (800) 580-8658. Current policyholders will receive detailed information from TMLT before their policy renews, or they may ask their underwriter. TMLT is the state’s largest medical li-
ability insurance provider, serving more than 15,000 members. TMA created and endorsed TMLT, and it is owned by its policyholders. n
Crystal Conde is associate editor of Texas Medicine. You can reach her by telephone at (800) 880-1300, ext. 1385, or (512) 370-1385; by fax at (512) 370-1629; or by email at
crystal.conde@
texmed.org.
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