FOR IMMEDIATE RELEASE                                                         AT
WEDNESDAY, SEPTEMBER 14, 1994                                     (202) 616-2771
                                                              TDD (202) 514-1888

               JUSTICE DEPARTMENT APPROVES PROPOSAL TO FACILITATE
                MANAGED CARE CONTRACTING BY NEW YORK PODIATRISTS

     WASHINGTON, D.C. -- The Department of Justice's Antitrust Division
will permit a foot-care network to sign up podiatrists in New York State
who want to participate in managed health care plans.
     Assistant Attorney General Anne K. Bingaman, in charge of the
Antitrust Division, said the Department had approved a proposal under which
the Preferred Podiatric Network Inc., a subsidiary of the New York State
Podiatric Medical Association, would serve as an intermediary in enrolling
association members to provide foot-care service as part of managed care
plans.  
     She emphasized that the network would not negotiate fees on behalf of
any member.  Each member would be free to accept or reject any offer.
     The Department's position was stated in a business review letter from
Bingaman to counsel for the network and the association.
     Bingaman said the network's activities are not likely to be
anticompetitive because: 
       It will be a bona fide intermediary, not a negotiator for competing
podiatrists.
       It may gather and provide to payers generalized price information,
but has adopted procedures to ensure that specific prices are not made
available to members.
       It is non-exclusive and should not impede the participation of its
members as podiatric providers in other managed care networks.
     Under the Department's business review procedure, an organization may
submit a proposed action to the Antitrust Division and receive a statement
as to whether the Division will challenge the action under the antitrust
laws.
     A file containing the business review request and the Department's
response may be examined in the Legal Procedure Unit of the Antitrust
Division, Room 3235, Department of Justice, Washington, D.C. 20530.  After
a 30-day waiting period, the documents supporting the business review will
be added to the file.
                                      ###
94-523