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Antitrust Relief
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Letter of support for H.R. 1304, the "Quality Health Care Coalition Act of 1999."
The AMA, numerous medical specialties and state medical societies salute Rep. Tom Campbell's (R-CA) legislation--March 25, 1999


March 25, 1999

The Honorable Tom Campbell
U.S. House of Representatives
2442 Rayburn House Office Building
Washington, DC 20515

Dear Representative Campbell:

The undersigned medical organizations are pleased to support, the "Quality Health Care Coalition Act of 1999." This legislation would allow health care professionals to negotiate collectively with health plans regarding terms that affect patient care, thus restoring physicians' ability to advocate for quality care for their patients and strengthening the physician/provider-patient relationship.

The health care industry has seen a significant concentration of health plans: over 162 mergers in the last ten years. The New York Times recently reported that in the past four years the 18 leading health insurers have combined into six. Consequently, physicians increasingly find themselves at the negotiating table with enormous health plan bureaucracies whose main interest is in the financial bottom line. Physicians' ability to effectively advocate for quality care has been whittled away to the detriment of patients and efficient, effective health care delivery. The result is increasing control over health care by insurers that place cost and profitability before quality and individual patient care.

We see example after example of how physicians are presented with "take-it-or-leave-it" negotiations by health plans that cover a very large portion of their patients. Unfair and heavy-handed negotiating tactics often result in contracts with terms that harm patients, especially when it comes to terms that arbitrarily define which treatments are "medically necessary" and how to protect the privacy of medical records. For instance:

  • Requiring physicians to use the least costly of alternative treatments which can be provided to patients;
  • Preventing physicians from openly discussing alternative treatments that the plan does not consider to be "medically necessary;"
  • Requiring physicians to agree to defend, indemnify and hold harmless the plan and its agents, for any claims, lawsuits or damages as a result of any disclosure of patient information made by the plan that results in a violation of a patient's privacy rights; and
  • Requiring physicians to participate in all of the plan's products and to accept arbitrary compensation rates subject to change at short notice despite its effects on physicians' ability to deliver quality care.


Previous efforts to modify antitrust enforcement policy have failed to "level the playing field." Insurers operate under an antitrust exemption. Enormous health plan bureaucracies put health plan profits above patient care. Consumers are paying more but getting less. The "Quality Health Care Coalition Act" would level the playing field by providing individual health professionals the leverage they need to negotiate effectively with health plans.

We thank you for introducing this bill that would improve patient care by restoring balance to negotiations between health plans and health care professionals. We share your belief that high quality health care can be driven by a truly competitive marketplace, not by the ability of health plans to dictate contract terms as a result of market power acquired by purchasing market share.

Sincerely,

American Academy of Facial Plastic & Reconstructive Surgery
American Academy of Ophthalmology
American Academy of Otolaryngology Head & Neck Surgery
American Association for Thoracic Surgery
American Association of Clinical Endocrinologists
American Association of Neurological Surgeons
American Association of Orthopaedic Surgeons
American College of Cardiology
American College of Chest Physicians
American College of Rheumatology
American College of Surgeons
American Gastroenterological Association
American Lung Association
American Medical Association
American Osteopathic Association
American Psychiatric Association
American Society for Gastrointestinal Endoscopy
American Society for Reproductive Medicine
American Society of Anesthesiologists
American Society of Cataract and Refractive Surgery
American Society of General Surgeons
American Society of Plastic & Reconstructive Surgeons
American Thoracic Society
American Urological Association
Congress of Neurological Surgeons
National Medical Association
Renal Physicians Association
Society of Thoracic Surgeons
Medical Association of the State of Alabama
Alaska State Medical Association
Arkansas Medical Society
California Medical Association
Colorado Medical Society
Connecticut State Medical Society
Medical Society of Delaware
Medical Society of District of Columbia
Florida Medical Association
Medical Association of Georgia
Hawaii Medical Association
Idaho Medical Association
Illinois State Medical Society
Indiana State Medical Association
Iowa Medical Society
Kansas Medical Society
Kentucky Medical Association
Louisiana State Medical Society
Maine Medical Association
Michigan State Medical Society
Minnesota Medical Association
Missouri State Medical Association
Montana Medical Association
Nebraska Medical Association
Nevada State Medical Association
New Hampshire Medical Society
Medical Society of New Jersey
New Mexico Medical Society
Medical Society of the State of New York
North Carolina Medical Society
North Dakota Medical Association
Ohio State Medical Association
Oklahoma State Medical Association
Oregon Medical Association
Pennsylvania Medical Society
Rhode Island Medical Society
South Carolina Medical Association
South Dakota State Medical Association
Tennessee Medical Association
Texas Medical Association
Utah Medical Association
Vermont State Medical Society
Medical Society of Virginia
Washington State Medical Association
West Virginia State Medical Association
State Medical Society Wisconsin
Wyoming Medical Society


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Published Mar 25 1999
Updated Apr 20 1999 1:51PM

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