FOR IMMEDIATE RELEASE                                          AT
FRIDAY, NOVEMBER 3, 1995                           (202) 616-2771
                                               TDD (202) 514-1888

                                
 JUSTICE DEPARTMENT APPROVES PROPOSAL TO FACILITATE THIRD-PARTY
            PAYOR CONTRACTING BY GEORGIA PODIATRISTS

     WASHINGTON, D.C. -- A Georgia foot-care network will be
allowed to act as an intermediary for soliciting and managing
managed care contracts between its members and third party payors
under a proposal approved today by the Department of Justice's
Antitrust Division.  
     The proposed network will be open to any member of the
Georgia Podiatric Medical Association.  The network, to be called
Georgia Preferred Podiatric Medical Network, represents 92 of the
state's 212 podiatrists.
       The Department said the proposed activities are not likely
to be anticompetitive because the network will function as a
facilitator of managed care contracting between its members and
payors.  The network will not negotiate fees on behalf of its
members, and members will be prohibited from discussing contract
terms among themselves.  
     The Department's position was stated in a business review
letter from Anne K. Bingaman, Assistant Attorney General in
charge of the Antitrust Division, to counsel for the Georgia
Preferred Podiatric Medical Network.
     In addition, the Department said the discussions that payors
may request with the network's agent concerning non-price issues
may be efficiency-enhancing, since they may assist plans in
developing effective standards of care and cost controls.  Also,
since the network will be nonexclusive, its members will be free
to continue to participate in competing networks and panels
serving managed care enrollees and to join as many additional
networks and panels as they please.  
     The Department said the network should benefit managed care
plans and their enrollees through efficiencies that may result
from payors' ability to contract with a large group of
podiatrists through a single representative and from utilization
review and quality assurance monitoring.  
     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 215 North, Liberty Place,
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.
                               ###95-567