FOR IMMEDIATE RELEASE                                          AT
TUESDAY, MAY 28, 1996                              (202) 616-2771
                                               TDD (202) 514-1888

                                 
     JUSTICE DEPARTMENT MOVES TO STOP ANTICOMPETITIVE ACTIONS
         OF NATIONAL MEDICAL RESIDENCY TRADE ASSOCIATION

     WASHINGTON, D.C. -- The Justice Department reached a
settlement today with a Kansas City, Missouri-based association,
which represents hospital residency program directors, that will
stop the association from using "ethical" rules to restrict
competition among its members.  These rules barred residency
programs from offering individual economic incentives to attract
prospective family practice medical residents.  
     The Department's Antitrust Division filed a civil suit in
U.S. District Court in Kansas City, Missouri, against the
Association of Family Practice Residency Directors for
restricting competition among its members for family practice
medical residents.  At the same time, the Division filed a
proposed consent decree that, if approved by the court, would
eliminate the challenged "ethical" rules and resolve the lawsuit.
     The association represents about 95 percent of all U.S.
family practice residency program directors that provide graduate
education in the specialty of family practice medicine. 
     The Department said that this is the fifth antitrust suit
involving anticompetitive trade association activity that it has
filed in recent years.
     Anne K. Bingaman, Assistant Attorney General in charge of
the Antitrust Division, said, "This association exceeded the
bounds of legitimate professional conduct when it established
guidelines to limit competition among family practice residency
programs seeking to employ residents.  Professional associations
must resist the impulse to use their collective power to restrict
competition among their members."    
     According to the complaint, the Association of Family
Practice Residency Directors: 
        Issued guidelines governing recruiting of prospective
residents by family residency programs.
        Through the guidelines, prohibited the offering of
individualized economic inducements to candidates and prohibited
the use of certain other competitive recruiting practices.
       Published the guidelines and ensured compliance with them.
     The proposed consent decree requires the Association of
Family Practice Residency Directors to withdraw the challenged
guidelines.  Also, the association may not promulgate similar
rules in any form. 
     As required by the Antitrust Procedures and Penalties Act, 
the proposed consent decree will be published in the Federal
Register, along with the Department's competitive impact
statement, which will describe the case and the proposed relief. 
     Any person may submit written comments concerning the
proposed consent decree during a 60-day comment period to Gail
Kursh, Chief, Health Care Task Force, Antitrust Division, U.S.
Department of Justice, 325 7th Street, N.W., Washington, D.C.
20530.
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