FOR IMMEDIATE RELEASE                                          AT
TUESDAY, JULY 2, 1996                              (202) 616-2771
                                               TDD (202) 514-1888
                                
    JUSTICE DEPARTMENT WILL NOT CHALLENGE PROPOSAL TO FORM A
  PHYSICIANS GROUP TO PROVIDE MEDICAL SERVICES IN CONNECTICUT

     WASHINGTON, D.C. -- The Department of Justice today said
that it will not challenge a proposal from a group of Connecticut
medical practices to form a financially integrated group of
physicians to negotiate and enter into contracts with managed
care payers in the New Haven, Connecticut area.  The group, to be
called the Primary and Specialist Medical Center, will consist of
medical practices of various sizes and specialties in the New
Haven area and will represent its members on an exclusive basis. 
     The Department said that the group is unlikely to create
market power that would lead to competitive harm to consumers,
and that there is a strong possibility that consumers will
benefit from the group's proposed operations.
     The Department said that the proposal meets the antitrust
safety zone for exclusive physician network joint ventures under
the Statements of Enforcement Policy and Analytical Principles
Relating to Health Care and Antitrust, issued by the Department
and the Federal Trade Commission in September 1994.
     To satisfy the safety zone, a physician joint venture must
share substantial financial risk and comprise 20 percent or fewer
of the physicians in each physician specialty who practice in the
relevant geographic market.  This proposal meets that standard.
     The Department's position was stated in a business review
letter from Anne K. Bingaman, Assistant Attorney General in
charge of the Department's Antitrust Division, to counsel for the
group.
     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, Suite 215 North, Liberty Place, 325
7th Street N.W., 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.
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