Chiropractic Organization May Not Negotiate Prices for Its Members

In U.S. v. Oklahoma State Chiropractic Independent Physicians Association, filed in the Northern District of Oklahoma, the Antitrust Division and the defendant association have entered a consent decree preventing an Oklahoma chiropractic association from negotiating joint contracts with insurers that the DOJ believes thwarted competition and drove up prices for consumers.  The decree, which must first be reviewed by the court, would resolve the Antitrust Division’s contention that the defendant negotiated anticompetitive contracts with at least seven insurers on behalf of the group’s members, comprising about 45 percent of Oklahoma chiropractors. 

Under the settlement, the association is required to stop (1) communicating with chiropractors about pricing or contracting; (2) jointly determining prices for chiropractic services; and (3) negotiating insurance contracts on behalf of competing chiropractors.

“By jointly negotiating fees on behalf of competing chiropractors,” Assistant Attorney General Bill Baer” said, “the association and its executive director increased the prices that consumers paid for chiropractic services in Oklahoma.”  He explained that the prohibitions in the consent decree will increase competition. 

The defendant denied that its practices were anticompetitive, stating that it agreed to settle merely because it wanted to end the investigation.

The Antitrust Division will accept public comments on the decree for 60 days while seeking the required court approval.

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