View the related business review

FOR IMMEDIATE RELEASE                                                    AT

FRIDAY, OCTOBER 28, 1994                                     (202) 616-2771

                                                         TDD (202) 514-1888



               DEPARTMENT OF JUSTICE APPROVES PROPOSAL FOR A

                  BOWLING GREEN AREA HEALTH CARE NETWORK





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

Division today approved a proposal allowing more than 100

Kentucky physicians to create a health care provider network that

could reduce health care costs to consumers in the Bowling Green

area.

     Under the proposal, Physician Care Inc. will contract with

payers at capitated, or per subscriber rates, or on discounted

fee-for-service rates.  It will withhold 20 percent of

compensation for fee-for-service physicians, distributing it only

if certain cost containment and utilization goals are met.

     The proposal will provide an alternative health care

delivery system and could increase competition and lower health

care costs for consumers, said Anne K. Bingaman, Assistant

Attorney General in charge of the Antitrust Division, in a

business review letter.

     The network would provide service in 10 counties known as

the Barren River Area Development District.  Bowling Green is the

largest city in the proposed service area.   

     Today's action is part of the Administration's continuing

effort to encourage innovative arrangements between purchasers of

medical services and health care providers to improve health care

delivery at a reasonable cost, the Department said.

     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

documents supporting the business review will be added to the

file.

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