Local obstetricians are focus of FTC probe

Thursday, Aug. 15, 2002 | 11:14 a.m.

The Federal Trade Commission is investigating Clark County obstetricians to determine whether they have collectively negotiated prices from insurers in violation of anti-trust laws.

The July 19 letter from the FTC to the Clark County OB/GYN Society did not disclose what prompted the investigation.

But Dr. Mark Turner, a Las Vegas obstetrician and ethics officer for the society, said today that he believed the investigation has to do with an attempt by some local obstetricians to form an independent physicians' association (IPA) to negotiate prices.

"All I heard was that our effort to set up an IPA was put on hold because the FTC has questions about it," Turner said.

Turner said that such associations are legal under certain circumstances as long as they represent only a percentage of doctors in a community and are not viewed as a monopoly. He said one such association has been operating successfully in Reno.

Obstetricians have complained that it is difficult for them to stay in business in Clark County because of skyrocketing medical malpractice insurance rates combined with reimbursements from insurers that the doctors say have been stagnant for many years. At least 26 county obstetricians have either closed their doors or retired early this year as a result of the medical malpractice dilemma.

"The reason our reimbursement is so low is that we negotiate individually, so we have no leverage," Turner said. "We're trying to put something together where we can survive here. The only way doctors can stay in town is to be better reimbursed.

"A combination of skyrocketing malpractice insurance rates with the current reimbursements are forcing doctors out of practice."

FTC spokesman Mitch Katz said today that the commission does not comment on ongoing investigations. But he said that it is not uncommon for the commission to investigate doctors.

In July 1995 the commission directed the Northwest Nevada Orthopedic Surgery Alliance in Northern Nevada to change the way it operates.

Since 2000 the commission has taken action against doctors in Fairbanks, Alaska, Austin, Texas, Napa, Calif., and Denver. If the FTC finds that a doctor has been guilty of violating anti-trust laws, it can ask the Justice Department to seek an $11,000 fine per violation.

But Katz said it usually doesn't go that far.

"Our intention is to work with the doctors to alleviate the anti-competitive behavior," Katz said. "If we can't get them to change their behavior, we can seek an injunction."