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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