What sanctions were/are available to county medical societies to prevent price competition? Do you feel the sanctions we...
What sanctions were/are available to county medical societies to prevent price competition? Do you feel the sanctions were/are appropriate? Why or Why Not?
Homework Answers
To prevent the price competition in county medical societies the preferred Provider organization (PPOs) has certain sanctions such as,
* The hospital may set fees schedule to the independent competing entrepreneur with some agreement or any kind of contract and it should not violate the antitrust law
*Hospital may make an independent price rating and fee structure according to the physician acceptances .
* Hospital may provide contract to the third parties or own paying client and may act as a broker among them.
These sanction are somewhat appropriate to prevent price rating in medical societies because it could be very helpful to every individual to bear the medical price .
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