Question

EkSGjuupP229 TerShrArvkmkAMsqqCbac3hUGPBRNch1Wh2YVyNoby90F)dXGZT2GVdsz9bG5RrrinOqNBLLW%3d%3d8.classid=2293815#/learning Platform/class/s Topic 5 DQ 1 You are a hospital administrator, and you receive a call from a colleague at another hospital. Your colleague, who is a friend, informs you that he has received a demand for a stipend from the ophthalmologists who take ED calls at his hospital, and they want a sizeable raise. He asks you what you pay for that type of call, and suggests that you could both benefit by coming up with a standard rate of pay over which neither of you will go in response to physician demands. It could save your hospitals 5300,000 to do this. What is your response, and what is the rationale for it? Attempt Start Date: 02-Jan-2020 at 12:00:00 AM Due Date: 04-Jan-2020 at 11:59:59 PM Maximum Points: 5.0

Answer 1

The problem is pertaining to promoting of price fixation. The friend of the administrator who works with a competitor calls him up and asks him to have a standard prize of stipend outlay. This is apart of price fixation agreement where competitors stabilise prices in order to eliminate healthy competition. Secondly there is mutual benefits paid thus making it completely a price fixation agreement.
Such agreements are illegal as they are antitrust to stake holders who benefit from healthy competition. Sometimes such agreements are criminalised too. Hence, without proper justification such acts can end up penalised as they are no less than offence.
Thus, it's better to disagree with the offer.