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White Sands Healthcare System Case Summary

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Case summary White Sands Healthcare system, L.L.C., is a Physician-Hospital Organization in Alamogordo. It was created in 1996.It consists of Alamogordo Physicians, an Independent Practice Association, which has 45 Physician members ,representing 84% of all physicians practicing independently in the area.; Gerald Champion Regional Medical Center, the only hospital in the Alamogordo area; and 31 non-physician health care providers, including all five nurse anesthetists in the area.. It has violated the section 5 of the FTC act, 15 U.S.C. § 45 that prohibits unfair or deceptive acts or practices that affects the commerce.(2) Here, In this case white sands has increased the consumer cost by jointly fixing the prices charged …show more content…
They cannot negotiate individually with the payors.
3) The joint conduct of the this network provider organization is not justifiable as they did not agreed to provide services at a capitated rate or they did not created significant financial incentives for its members to achieve cost containment goals.
Recommendations that would have remedied any sanctions in this case
1) Instead of an illegal agreement between the organization members regarding the consumer cost, the white sands Healthcare system, L.L.C. could become a legitimate joint venture for antitrust purposes which is not subject to rule but rather it is evaluated under the "rule of reason". This analysis allows the facts of a particular case to be reviewed to determine weather the joint conduct of competitors promotes or regulates

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