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FOR IMMEDIATE RELEASE                                                    AT
THURSDAY, DECEMBER 8, 1994                                   (202) 616-2771
                                                         TDD (202) 514-1888

                                     


               JUSTICE DEPARTMENT APPROVES PROPOSAL TO FORM
                RADIOLOGIST PHYSICIAN JOINT VENTURE NETWORK

     Washington, D.C. -- The Department of Justice's Antitrust Division
today approved a proposal by the Chicagoland Radiological Network to form a
network to offer managed care contracts to third-party payers.  The plan
could reduce radiologist costs to residents in eight counties near Chicago.
     The Department's position was stated in a business review 
letter from Assistant Attorney General Anne K. Bingaman, in 
charge of the Antitrust Division, to counsel for CRN.
     Bingaman said the proposal would allow third-party
payers to enter into a single contract for radiologist services.  In the
past, managed care payers often have had to contract separately for
inpatient and outpatient radiologist services and for professional and
facility fees.
     Bingaman also stated that the radiologist network is not likely to
adversely affect competition because any attempt by the participating
radiologists to exercise market power would be defeated by the variety of
competing alternatives available to payers.
     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 document supporting the business review will
be added to the file.
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94-688