Beautyman Alvstad, LLP, working with the American Medical Association and the Federal Trade Commission (FTC), has begun to loosen the restrictions on provider networks and physician practice mergers.

The FTC asked for our guidance in articulating the relief needed for physicians. Please let us know if you have any situations which, on a no-name basis, merit communicating to the FTC.

Although legislative relief is not yet available, the FTC and the Department of Justice have recently approved many proposals for the operation of provider-sponsored networks. Recent FTC staff advisory opinions and Justice Department Business Review Letters have provided networks with as few as 10 to as many as 1000 doctors in a network, some regional, some statewide, and with as many as 70% of the specialists in an area.

Beautyman Alvstad, LLP has participated in developing eighteen provider networks around the country. Among these networks are Omnia, a network of over 200 ob/gyn physicians in southeastern Pennsylvania; River to River Medical Associates, a primary care network in New York; Pennsylvania Radiology MSO, a statewide radiology network consisting of 35 hospitals, 80 outpatient facilities, and 650 radiologists. New York Radiology Network. We are also advising WellSource, a behavioral health network; Sullivan County Organization of Physicians, Inc., a multi-specialty network; and Delaware Valley Neurosciences and Spine Cooperative.

Furthermore, we serve as the administrative headquarters for a number of networks while marketing their services to obtain network contracts from managed care plans and employers.

Recently, we secured a preeminent network payor contract, eliminating withholdings and increasing fees by 25% in exchange for network services.