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MHA530 SLP MOD 3 Management Essay Coursework Paper

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3/14/20, 10)09 PM https://tlc.trident.edu/content/enforced/153649-MHA530-2020FEB1…lSessionVal=cbDe7AAsf04S5UFzmEb7G1Q6q&ou=153649&d2l_body_type=3 Page 1 of 2 Module 3 - SLP LEGAL ENFORCEMENT OF ETHICS IN HEALTH CARE: REGULATION OF ANTITRUST AND FRAUD In the Matter of South Georgia Health Partners, et al., FTC Docket No. C-4100 (2003) Complaint: https://www.ftc.gov/sites/default/files/documents/cases/2003/11/sgeorgiacomp.pdf Decision and order: https://www.ftc.gov/sites/default/files/documents/cases/2003/11/sgeorgiado.pdf After reviewing the complaint and decision and order for In the Matter of South Georgia Health Partners in the background materials, address the following: 1. Explain the arrangement in this case. 2. Explain the decision of the FTC. 3. What kind of actions could be taken to restructure this arrangement to avoid a determination that it is per se illegal? 4. Discuss the alternate FTC analysis that is applied to such cases if they are suspect but not found to be per se illegal. SLP Assignment Expectations 1. Conduct additional research to gather sufficient information to justify/support your analysis. 2. Limit your response to a maximum of 2 pages (title and reference page is not included in page number count). 3. Support your paper with peer-reviewed articles, with at least 3 references. Use the following link for additional information on how to recognize peer-reviewed journals: Angelo State University Library. (n.d.). Library guides: How to recognize peerreviewed (refereed) journals. Retrieved from Listen 3/14/20, 10)09 PM https://tlc.trident.edu/content/enforced/153649-MHA530-2020FEB1…lSessionVal=cbDe7AAsf04S5UFzmEb7G1Q6q&ou=153649&d2l_body_type=3 Page 2 of 2 Privacy Policy | Contact https://www.angelo.edu/services/library/handouts/peerrev.php 4. You may use the following source to assist in formatting your assignment: Purdue Online Writing Lab. (n.d.). General APA guidelines. Retrieved from https://owl.english.purdue.edu/owl/resource/560/01/ 5. For additional information on reliability of sources, review the following source: Georgetown University Library. (n.d.). Evaluating internet resources. Retrieved from https://www.library.georgetown.edu/tutorials/research-guides/evaluatinginternet-content 6. This assignment will be graded based on the content in the rubric.

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Module 3-SLP: The PHO
Student Name
Institutional Affiliation
Module 3-SLP: The PHO
1. Explain the arrangement in this case.
The Physician-Hospital Organization (PHO) is made up of around 15 hospitals and 500 physicians. It operates with South Georgia, including around 90% of the physicians within the region. One of the main functions of the PHO is to negotiate fees for hospitals and physicians. However, this negotiation is a per se illegal act because it leads to unfair competition in the market. It should be corrected.
2. Explain the decision of the FTC.
An arrangement qualifies to be “per se” illegal if it is not illegal but its outcomes are illegal. In this case, it would be considered “per se” since it has the potential of causing unfair competition in the industry as outlined by FTC (2007). In this case the PHO in Southern Georgia, the impact of the hospitals and physicians of negotiating fees for services with their payers through the PHO stands out as an unfair competition act since it grants PHO the exclusive powers in the industry in the region, thus taking initiative away from the competing physicians and hospitals.
Despite the fact that over 90% of the hospitals and physicians within the region are under the PHO, the remaining 10% are not. As such, charging higher fees for physicians and hospitals makes competing challenging. The Sherman Antitrust Act of 1890 illegalizes entities fixing the prices for certain services at the levels that favor them. In this regard, the PHO negotiation does this, making the arrangement “per se” illegal according to FTCs’ analysis.
3. What kind of actions could be taken to restructure this arrangement to avoid a determination that it is per se illegal?
One of the ways of avoiding a per se illegal case is by altering an act to avoid resulting in unfair competition. This means that the acts should be altered such that they produce competitive benefits to all market players and competitors in the region. In other words, the actions should produce positive outcomes that promote fair competition in the market. One of such ways would be letting physicians and hospitals continue negoti...
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