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. ### 94-621