View the related business review

FOR IMMEDIATE RELEASE                                          AT

THURSDAY, OCTOBER 27, 1994                         (202) 616=2771

                                               TDD (202) 514-1888



           JUSTICE DEPARTMENT APPROVES PROPOSAL TO MAKE

        CALIFORNIA'S CHIROPRACTIC SERVICES MORE AVAILABLE





     WASHINGTON, D.C.-- The Department of Justice's Antitrust

Division has approved a proposal by the International

Chiropractor's Association of California that could reduce costs

to the public and permit association members to offer

chiropractic services at lower rates.

     The proposal would allow ICAC to form a statewide

chiropractic preferred provider that would contract with third-party payers.

     The Department's position was stated in a business review

letter from Assistant Attorney General Anne K. Bingaman, in

charge of the Antitrust Division, to counsel for ICAC.

     Bingaman said the proposed conduct would allow third-party

payers to enter into a single statewide contract for chiropractic

services through the chiropractic organization.  In the past,

third-party payers have been reluctant to enter into individual

contracts with chiropractors because of the cost of negotiating

such contracts in numerous small markets.    

     Bingaman also stated that the chiropractic organization is

not likely to adversely affect competition because any attempt by

the participating chiropractors to exercise market power would be

defeated by the variety of competing alternatives available to

payers.

     Under the Department's business review procedure, an

organization may submit a proposed action to the Antitrust

Division and receive a statement as to whether the Division will

challenge the action under the antitrust laws.

     A file containing the business review request and the

Department's response may be examined in the Legal Procedure Unit

of the Antitrust Division, Room 3235, Department of Justice,

Washington, D.C. 20530.  After a 30-day waiting period, the

document supporting the business review will be added to the

file.

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94-617