FOR IMMEDIATE RELEASE AT THURSDAY, OCTOBER 27, 1994 (202) 616=2771 TDD (202) 514-1888 JUSTICE DEPARTMENT APPROVES PROPOSAL TO MAKE CALIFORNIA'S CHIROPRACTIC SERVICES MORE AVAILABLE WASHINGTON, D.C.-- The Department of Justice's Antitrust Division has approved a proposal by the International Chiropractor's Association of California that could reduce costs to the public and permit association members to offer chiropractic services at lower rates. The proposal would allow ICAC to form a statewide chiropractic preferred provider that would contract with third- party payers. 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 ICAC. Bingaman said the proposed conduct would allow third-party payers to enter into a single statewide contract for chiropractic services through the chiropractic organization. In the past, third-party payers have been reluctant to enter into individual contracts with chiropractors because of the cost of negotiating such contracts in numerous small markets. Bingaman also stated that the chiropractic organization is not likely to adversely affect competition because any attempt by the participating chiropractors 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. ### 94-617