FOR IMMEDIATE RELEASE                                          AT
WEDNESDAY, NOVEMBER 1, 1995                        (202) 616-2771
                                               TDD (202) 514-1888


               JUSTICE DEPARTMENT APPROVES NETWORK
                 OF SOUTH CAROLINA DERMATOLOGISTS

     WASHINGTON, D.C. -- South Carolina dermatologists will be
allowed to form a network to contract with managed health care
plans to provide skin care services currently being provided by
internists, general and family practitioners and other
specialists under a proposal approved today by the Department of
Justice's Antitrust Division.
     The Department said the nonexclusive network will allow 85
board-certified dermatologists to contract with managed care
plans at competitive rates for dermatologic services commonly
provided by other types of doctors.
     Based on the assumption that the number of network
dermatologists in any local market will not exceed 30 percent of
all doctors available to provide the same kinds of services, the
Department said it is unlikely that network members would attain
market power or cause anticompetitive effects.  
     The Department's position was stated in a business review
letter from Anne K. Bingaman, Assistant Attorney General in
charge of the Antitrust Division, to Dr. Oswald Mikell of
Beaufort, South Carolina.  Dr. Mikell submitted the network
proposal to the Department.
     The network would share administrative costs, institute
quality control measures, and achieve savings through group
purchasing of supplies.  The group will share substantial
financial risk either by accepting capitated rates or by
withholding a minimum of 20 percent of fees as a risk pool that
will be retained or distributed to members only if promised
efficiency goals are achieved.
     Under the Department's business review procedure, an
organization may submit a proposed action to the Antitrust
Division and receive a statement 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 215 North, Liberty Place,
Department of Justice, Washington, D.C. 20530.  After a 30-day
waiting period, the documents supporting the business review will
be added to the file.
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95-561