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FOR IMMEDIATE RELEASE                                                    AT
FRIDAY, OCTOBER 28, 1994                                     (202) 616-2771
                                                         TDD (202) 514-1888

               DEPARTMENT OF JUSTICE APPROVES PROPOSAL FOR A
                  BOWLING GREEN AREA HEALTH CARE NETWORK


     WASHINGTON, D.C. -- The Department of Justice's Antitrust
Division today approved a proposal allowing more than 100
Kentucky physicians to create a health care provider network that
could reduce health care costs to consumers in the Bowling Green
area.
     Under the proposal, Physician Care Inc. will contract with
payers at capitated, or per subscriber rates, or on discounted
fee-for-service rates.  It will withhold 20 percent of
compensation for fee-for-service physicians, distributing it only
if certain cost containment and utilization goals are met.
     The proposal will provide an alternative health care
delivery system and could increase competition and lower health
care costs for consumers, said Anne K. Bingaman, Assistant
Attorney General in charge of the Antitrust Division, in a
business review letter.
     The network would provide service in 10 counties known as
the Barren River Area Development District.  Bowling Green is the
largest city in the proposed service area.   
     Today's action is part of the Administration's continuing
effort to encourage innovative arrangements between purchasers of
medical services and health care providers to improve health care
delivery at a reasonable cost, the Department said.
     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.
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