Fifth Circuit affirms decision by the FTC that Texas Physicians Group engaged in illegal price-fixing | Practical Law

Fifth Circuit affirms decision by the FTC that Texas Physicians Group engaged in illegal price-fixing | Practical Law

On 14 May 2008, a unanimous US Court of Appeals for the Fifth Circuit affirmed a 2005 decision by the U.S. Federal Trade Commission (FTC) that North Texas Specialty Physicians (NTSP), an organisation of independent physicians in the Fort Worth, Texas area, violated section 5 of the FTC Act. In upholding the decision, the Fifth Circuit agreed with the FTC that a full "rule of reason" analysis was unnecessary to condemn certain NTSP practices related to negotiating medical fees on behalf of its physician members. As a result, the FTC properly applied an abbreviated "inherently suspect" analysis to conclude that NTSP´s practices amounted to horizontal price-fixing. However, the Court found that one of the provisions of the FTC´s remedial order was overly broad and remanded the proceeding to the FTC to modify that provision.

Fifth Circuit affirms decision by the FTC that Texas Physicians Group engaged in illegal price-fixing

by Practical Law
Law stated as at 14 May 2008 • USA (National/Federal)
On 14 May 2008, a unanimous US Court of Appeals for the Fifth Circuit affirmed a 2005 decision by the U.S. Federal Trade Commission (FTC) that North Texas Specialty Physicians (NTSP), an organisation of independent physicians in the Fort Worth, Texas area, violated section 5 of the FTC Act. In upholding the decision, the Fifth Circuit agreed with the FTC that a full "rule of reason" analysis was unnecessary to condemn certain NTSP practices related to negotiating medical fees on behalf of its physician members. As a result, the FTC properly applied an abbreviated "inherently suspect" analysis to conclude that NTSP´s practices amounted to horizontal price-fixing. However, the Court found that one of the provisions of the FTC´s remedial order was overly broad and remanded the proceeding to the FTC to modify that provision.