FOR IMMEDIATE RELEASE                                                    AT
THURSDAY, DECEMBER 8, 1994                                   (202) 616-2771
                                                         TDD (202) 514-1888

                                     


               JUSTICE DEPARTMENT APPROVES PROPOSAL TO FORM
                RADIOLOGIST PHYSICIAN JOINT VENTURE NETWORK

     Washington, D.C. -- The Department of Justice's Antitrust
Division today approved a proposal by the Chicagoland
Radiological Network to form a network to offer managed care
contracts to third-party payers.  The plan could reduce
radiologist costs to residents in eight counties near Chicago.
     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 CRN.
     Bingaman said the proposal would allow third-party
payers to enter into a single contract for radiologist services. 
In the past, managed care payers often have had to contract
separately for inpatient and outpatient radiologist services and
for professional and facility fees.
     Bingaman also stated that the radiologist network is not
likely to adversely affect competition because any attempt by the
participating radiologists to exercise market power would be
defeated by the variety of competing alternatives available to 
                                  (MORE)

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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