DQ 5-1
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DQ5.docxDQ 5-1 responses
1.
As long as this does not violate any antitrust laws, which I do not believe it would, I would agree to the standard of pay. This would likely fall into an antitrust safety zone, possibly under statement 4, although I am not positive about this. A standard rate of pay would aid in cost containment and maintain efficiency, which is an overall benefit to healthcare consumers. It would be on the hospital administrators to keep careful records and ensure the standard of pay was "...administered with care and good faith" (Pozgar & Santucci, 2016, p. 483). The compliance committee would also be involved. "Maintaining propitious records of all grievances, grievance meetings, and grievous resolutions is the responsibility of supervisors and management" (Pozgar & Santucci, 2016, p. 483).
Pozgar, G.D., & Santucci, N. M. (2016). Legal Aspects of Health Care Administration (12th ed.). Burlington, MA: Jones & Bartlett Learning.
The United States Department of Justice. (1996). Statements of Antitrust Enforcement Policy in Health Care. Retrieved at:
https://www.justice.gov/atr.statements-antitrust-enforcement-policy-health-care#CONTNUM_40
If 2 different hospitals are working together to undercut (price fixing/bid rigging), would that not be collusion?
3.
When a managed care organization has significant market power there can be consequences of anti-trust laws and should be taken into consideration. As a hospital administrator I would not participate in this because it is illegal. Price fixing can be a violation of anti-trust laws and happens when there are two or more competitors that work together to set a price for goods or services. The Sherman Antitrust Act is to make sure that all contracts or conspiracy in restraint of trade or commerce is illegal. Anyone who attempts to control or conspire with another person to control a part of trade or commerce could result in a felony (Pozgar & Santucci, 2016). Specific areas for healthcare organizations consist of reducing market competition, price fixing, actions that may limit competitors, preferred provider arrangements, and exclusive contracts.
Pozgar, G.D. & Santucci, N.M. (2016). Legal Aspects of Health Care Administration (12th ed.). Burlington, MA: Jones & Bartlett Learning.
