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IN RE GROSSMONT ANESTHESIA SERVICES MEDICAL GROUP INC Click to find out why . . .



Keywords & Phrases
CaseNo: IRGASMGI272467, CourtCode: FED, CourtName: FEDERAL TRADE COMMISSION II, State: CA California, UniqueCaseRef: LCD>IRGASMGI272467, Anesthesiologists, Respondent, Hospitals, Commission, Asmg, Gas, Paragraph, Stipend, Complaint, Agreement, Consent Agreement, Patients, Arrangement, Joint Arrangement, Proposed Respondent, Physician, Act, Federal Trade Commission, Provision, Practices, Competition, Surgery, San Diego County, Competitively Significant Terms, Anesthesia Services, Control, Fees, Competing, Draft, Consent Order, San Diego, California, Employees, Officers, Services Medical Group, Negotiating, Acceptance , ContentID: 120255036

Case Documents
1   DECISION AND ORDER
[ see first page and extracted highlights below  ] ItemID: 132254
6 pages
PDF
2   COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 132253
4 pages
PDF
3   ANALYSIS
[ see first page and extracted highlights below  ] ItemID: 132252
3 pages
PDF
4   AGREEMENT CONTAINING CONSENT ORDER
[ see first page and extracted highlights below  ] ItemID: 132251
4 pages
PDF
Total Documents: 4 documents , 17 pages
Price: $ 34.95


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1 . DECISION AND ORDER

EXTRACTED KEY WORDS
COMMISSION
ARRANGEMENT
PHYSICIAN
COMPLAINT
AGREEMENT
ANESTHESIA SERVICES
PROVISION
EMPLOYEES
OFFICERS
SERVICES MEDICAL GROUP
PRACTICES
JOINT ARRANGEMENT
CONSENT AGREEMENT
PARTICIPATING
CONTROL
DIRECTORS
JURISDICTION
GROSSMONT ANESTHESIA SERVICES
ACT
FEDERAL TRADE COMMISSION
PAYOR
MEDICINE
SUCCESSORS
REPRESENTATIVES
BUSINESS
MATTER
JURISDICTIONAL FACTS
COUNSEL
VIOLATIONS
                                                                                                
                                             UNITED STATES OF AMERICA
                                   BEFORE FEDERAL TRADE COMMISSION



COMMISSIONERS:                               Timothy J. Muris, Chairman
                                             Sheila F. Anthony
                                             Mozelle W. Thompson
                                             Orson Swindle
                                             Thomas B. Leary



                                                                           )
           In the Matter of                                               )
                                                                          )     Docket No. C-
 GROSSMONT ANESTHESIA                                                     )
 SERVICES MEDICAL GROUP, INC.,                                            )
           a corporation.                                                 )
                                                                          )



                                                    DECISION AND ORDER


          The Federal Trade Commission ("Commission") having initiated an investigation of
certain acts and practices of Grossmont Anesthesia Services Medical Group, Inc., hereinafter
sometimes referred to as "Respondent," and Respondent having been furnished thereafter with a
copy of the draft of Complaint that the Commission staff proposed to present to the Commission
for its consideration and which, if issued, would charge Respondent with violations of Section 5
of the Federal Trade Commission Act, as amended, 15 U.S.C. § 45; and


          Respondent and counsel for the Commission having thereafter executed an Agreement
Containing Consent Order to Cease and Desist ("Consent Agreement"), containing an admission
by Respondent of all the jurisdictional facts set forth in the aforesaid draft of Complaint, a
statement that the signing of said Consent Agreement is for settlement purposes only and does
not constitute an admission by Respondent that the law has been violated as alleged in such
Complaint, or that the facts as alleged in such Complaint, other than jurisdictional facts, are
and waivers and other provisions as required by the Commission's Rules; and


          The Commission having thereafter considered the matter and having determined that it
had reason to believe that Respondent has violated the said Act, and that a Complaint should
issue stating its charges in that respect, and having accepted the executed Consent Agreement
and placed such Consent Agreement on the public record for a period of thirty (30) days for the
receipt and consideration of public comments, now in further conformity with the procedure
SNIPPETS:
  • The Commission having thereafter considered the matter and having determined that it had .F.R. § 2.34, the Commission hereby issues its Complaint, makes the following jurisdictional
  • Respondent Grossmont Anesthesia Services Medical Group, Inc. is a professional corporation
  • The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of
  • "Respondent" means Grossmont Anesthesia Services Medical Group, Inc., its officers,
  • "Physician" means a doctor of allopathic medicine or a doctor of osteopathic medicine.
  • "Medical Practice" means a bona fide, integrated business entity in which Physicians practice
  • E. "Payor" means any Person that pays, or arranges for payment, for all or any part of any
  • (This definition also applies to all tenses and forms of the word "participate," including,
  • G. "Qualified risk-sharing joint arrangement" means an arrangement to provide Physician
  • Physicians who participate to jointly control costs and improve quality by
  • managing the provision of Physician services,

  • 2 . COMPLAINT

    EXTRACTED KEY WORDS
    HOSPITALS
    ASMG
    GAS
    PARAGRAPH
    STIPEND
    COMPETITION
    PATIENTS
    ACT
    SAN DIEGO
    CALIFORNIA
    UNINSURED EMERGENCY ROOM
    SAN DIEGO COUNTY
    RESPONDENT
    FEDERAL TRADE COMMISSION
    STIPEND AMOUNT
    HOSPITALS PAY
    RENDERING SERVICES
    SURGERY
    BUSINESS
    FTC ACT
    GENERAL ACUTE CARE
    RESTRAIN
    FEES
    RELEVANT TIMES
    PRACTICES
    NEGOTIATING
    DEMAND
    AGREEMENTS
    COMPETITIVELY SIGNIFICANT TERMS
    
                                                                                                    
                                                 UNITED STATES OF AMERICA
                                       BEFORE FEDERAL TRADE COMMISSION
    
    
    
    
                                                                               )
               In the Matter of                                               )     DOCKET NO. C-
                                                                              )
     GROSSMONT ANESTHESIA                                                     )
     SERVICES MEDICAL GROUP, INC.,                                            )
               a corporation.                                                 )
                                                                              )
    
    
                                                                  COMPLAINT
    
    
              The Federal Trade Commission ("Commission"), having reason to believe that
    Grossmont Anesthesia Services Medical Group, Inc., a California corporation, ("Respondent" or
    "GAS") has violated Section 5 of the Federal Trade Commission Act ("FTC Act"), as amended,
    15 U.S.C. § 45, and it appearing to the Commission that this proceeding is in the public interest,
    alleges:
    
    
    PARAGRAPH 1:  GAS is a professional corporation organized, existing, and doing business
    under and by virtue of the laws of the State of California, with its office and principal place of
    business located at 5101 Garfield Street, La Mesa, CA  91941.  GAS is composed of
    approximately 10 anesthesiologists.
    
    
    PARAGRAPH 2:  Anesthesia Service Medical Group, Inc. ("ASMG") is a professional
    corporation organized, existing, and doing business under and by virtue of the laws of the State
    of California, with its office and principal place of business located at 3626 Ruffin Road, San
    Diego, CA  92123.  ASMG employs approximately 180 anesthesiologists.
    
    
    PARAGRAPH 3:  At all times relevant to this Complaint, ASMG and GAS have provided, and
    do provide, anesthesia services for a fee to patients in San Diego County, California.
    
    
    PARAGRAPH 4:  Except to the extent that competition has been restrained as alleged in this
    Complaint, ASMG and GAS have competed, and do compete, with each other to provide
    anesthesia services in San Diego County, California.
    
    
    PARAGRAPH 5:  ASMG and GAS anesthesiologists are, or have been, members of the medical
    staff of Grossmont Hospital in La Mesa, a municipality in central San Diego County, California.
    
    SNIPPETS:
  • The Federal Trade Commission, having reason to believe that Grossmont Anesthesia Services
  • PARAGRAPH 1: GAS is a professional corporation organized, existing, and doing business under
  • GAS is composed of approximately 10 anesthesiologists.
  • At all times relevant to this Complaint, ASMG and GAS have provided, and do provide,
  • Except to the extent that competition has been restrained as alleged in this Complaint, ASMG
  • Respondent is, and at all relevant times has been, engaged in commerce, as
  • "commerce" is defined in Section 4 of the FTC Act,
  • Those services include evaluating a patient before surgery, consulting with the surgical
  • In addition to working on scheduled surgical procedures, anesthesiologists work on
  • Health insurance companies and other third-party payors typically reimburse anesthesiologists
  • Some hospitals pay anesthesiologists stipends through contracts that establish a stipend
  • Absent agreements among competing anesthesiologists, competing anesthesiologists or
  • Grossmont Hospital does not now, and has not in the past, paid its anesthesiologists a
  • AGREEMENT TO RESTRAIN TRADE
  • ASMG and GAS discussed stipend amounts that they both would demand from Grossmont Hospital.
  • They agreed to maintain a solid front against the hospital to prevent the hospital from
  • Respondent's acts and practices described above constitute unfair methods of competition in

  • 3 . ANALYSIS

    EXTRACTED KEY WORDS
    HOSPITALS
    AGREEMENT
    STIPEND
    GAS
    ASMG
    RESPONDENT
    JOINT ARRANGEMENT
    PATIENTS
    COMPETING
    PARAGRAPH
    CONSENT ORDER
    COMPETITIVELY SIGNIFICANT TERMS
    PROVISION
    PRACTICE
    REIMBURSEMENT
    SURGERY
    CARE
    FEES
    COMMISSION
    AMOUNT
    CONTROL
    SAN DIEGO COUNTY
    COMPLAINT
    FACILITATING
    QUALIFIED CLINICALLY-INTEGRATED JOINT
    NEGOTIATING
    REFUSE
    UNINSURED PATIENTS
    HOSPITALS PAY ANESTHESIOLOGISTS
    
                             ANALYSIS OF AGREEMENT CONTAINING
                           CONSENT ORDER TO AID PUBLIC COMMENT
                  In the Matter of Grossmont Anesthesia Services Medical Group, Inc.
                                            File No. 021 0006
    
    
            The Federal Trade Commission ("Commission") has accepted, subject to final approval,
    an agreement containing a proposed consent order with Grossmont Anesthesia Services Medical
    Group, Inc.  ("GAS" or "Respondent").  The agreement settles charges that Respondent violated
    Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45, by facilitating and
    implementing agreements with Anesthesia Service Medical Group, Inc. ("ASMG") on fees,
    quantity of anesthesia services provided, and other competitively significant terms.  The
    proposed consent order has been placed on the public record for 30 days to receive comments
    from interested persons. Comments received during this period will become part of the public
    record.  After 30 days, the Commission will review the agreement and the comments received,
    and will decide whether it should withdraw from the agreement or make the proposed order final.
    
    
            The purpose of this analysis is to facilitate public comment on the proposed order.  The
    analysis is not intended to constitute an official interpretation of the agreement and proposed
    order, or to modify their terms in any way.  Further, the proposed consent order has been entered
    into for settlement purposes only and does not constitute an admission by any Respondent that
    said Respondent violated the law or that the facts alleged in the complaint (other than
    jurisdictional facts) are true.
    
    
    The Complaint Allegations
    
    
            GAS and ASMG are competing anesthesiology groups that provide anesthesia services
    for a fee to patients in San Diego County, California.  ASMG employs approximately 180
    anesthesiologists.  GAS is composed of approximately 10 anesthesiologists.  GAS and ASMG
    anesthesiologists are members of the medical staff of Grossmont Hospital in La Mesa, a
    municipality in central San Diego County, California.  GAS and ASMG anesthesiologists make
    up approximately 75 percent of the anesthesiologists with active medical staff privileges at
    Grossmont Hospital and work on approximately 70 percent of the cases that require anesthesia
    services at the hospital.
    
    
            Anesthesiologists provide anesthesia services to patients primarily at general acute care
    hospitals and outpatient surgery centers.  Those services include evaluating a patient before
    surgery, consulting with the surgical team, providing pain control and support-of-life functions
    during surgery, supervising care after surgery in the recovery unit, and medically discharging the
    patient from the recovery unit.  In addition to working on scheduled surgical procedures,
    anesthesiologists work on unscheduled obstetric and emergency cases at general acute care
    hospitals.  An anesthesiologist who remains available to work on unscheduled cases is said to be
    "taking call."
    
    
    
    SNIPPETS:
  • The Federal Trade Commission has accepted, subject to final approval, an agreement containing
  • The agreement settles charges that Respondent violated Section 5 of the Federal Trade
  • the proposed consent order has been entered into for settlement purposes only and does not
  • GAS and ASMG are competing anesthesiology groups that provide anesthesia services for a fee
  • GAS is composed of approximately 10 anesthesiologists.
  • GAS and ASMG anesthesiologists are members of the medical staff of Grossmont Hospital in La
  • Those services include evaluating a patient before surgery, consulting with the surgical
  • In addition to working on scheduled surgical procedures, anesthesiologists work on
  • anesthesiologists for services rendered to their subscribers during scheduled and unscheduled
  • Some hospitals pay anesthesiologists stipends through contracts that establish a stipend
  • Absent agreements among competing anesthesiologists, competing anesthesiologists or
  • They also decide independently whether they will terminate or restrict the services they
  • they agreed to maintain a solid front against the hospital to prevent the hospital from
  • Paragraph II.A prohibits Respondent from entering into or facilitating agreements between or
  • A "medical practice" is defined as a bona fide, integrated business entity in which
  • Paragraph II.B prohibits Respondent from attempting to engage in any action prohibited by
  • Paragraph II contains a proviso that allows Respondent to engage in conduct that is
  • all participating providers must share substantial financial risk through the arrangement and
  • any agreement concerning reimbursement or other terms or conditions of dealing must be

  • 4 . AGREEMENT CONTAINING CONSENT ORDER

    EXTRACTED KEY WORDS
    CONSENT AGREEMENT
    COMMISSION
    COMPLAINT
    DRAFT
    ACCEPTANCE
    CONTEMPLATES
    PROCEEDING
    LAW
    MANNER
    COMMISSION RULE
    FACTS
    VIOLATION
    DISPOSITION
    SERVE
    WITHDRAW
    RESPECT THERETO
    PUBLIC RECORD
    BUSINESS
    HEREBY
    RELIEF
    CEASE
    PRACTICES
    ACTS
    FEDERAL TRADE COMMISSION
    COMPLIANCE
    STATUTE
    SET ASIDE
    SUBSTANCE
    PROVISIONS
    
                                                   UNITED STATES OF AMERICA
                                          BEFORE FEDERAL TRADE COMMISSION
    
    
    
    
    
                                                                               )
               In the Matter of                                               )     FILE NO. 021 0006
                                                                              )
     GROSSMONT ANESTHESIA SERVICES                                            )
     MEDICAL GROUP, INC.,                                                     )
               a corporation.                                                 )
                                                                              )
    
    
                                          AGREEMENT CONTAINING CONSENT
                                                 ORDER TO CEASE AND DESIST
    
    
              The Federal Trade Commission ("Commission"), having initiated an investigation of
    certain acts and practices of Grossmont Anesthesia Services Medical Group, Inc., a corporation,
    hereinafter sometimes referred to as "Proposed Respondent," and it now appearing that Proposed
    Respondent is willing to enter into an Agreement Containing Consent Order to Cease and Desist
    ("Consent Agreement") from certain acts and practices, and providing for other relief,
    
    
              IT IS HEREBY AGREED by and between Proposed Respondent and counsel for the
    Commission that:
    
    
              1.          Proposed Respondent Grossmont Anesthesia Services Medical Group, Inc. is a
    professional corporation organized, existing, and doing business under and by virtue of the laws
    of the State of California, with its office and principal place of business located at 5101 Garfield
    Street, La Mesa, CA 91941.
    
    
              2.          Proposed Respondent admits all the jurisdictional facts set forth in the
    Complaint here attached.
    
    
              3.          Proposed Respondent waives:
    
    
                          (a)        any further procedural steps;
    
    
                          (b)        the requirement that the Commission's Decision and Order ("Order"),
                                     attached hereto and made a part hereof, contain a statement of
    
    SNIPPETS:
  • The Federal Trade Commission, having initiated an investigation of certain acts and practices
  • IT IS HEREBY AGREED by and between Proposed Respondent and counsel for the Commission that:
  • professional corporation organized, existing, and doing business under and by virtue of the
  • This Consent Agreement shall not become part of the public record of the proceeding unless
  • If this Consent Agreement is accepted by the Commission it, together with the draft of
  • The Commission thereafter may either withdraw its acceptance of this Consent Agreement and so
  • This Consent Agreement is for settlement purposes only and does not constitute an admission
  • This Consent Agreement contemplates that, if it is accepted by the Commission, and if such with respect thereto.
  • When so entered, the Order shall have the same force and effect, and may be altered,
  • Proposed Respondent has read the draft of the Complaint and the Order contemplated hereby.
  • Proposed Respondent represents that the full relief contemplated by this Consent Agreement
  • Proposed Respondent understands that once the Order has been issued, it will be required to
  • understands that it may be liable for civil penalties in the amount provided by law for each
  • Director Bureau of Competition Federal Trade Commission
  •    |