American College of Obstetricians and Gynecologists

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IN THE MATTER OF THE AMERICAN COLLEGE OF OBSTETRICIANS AND GYNECOLOGISTS MODIFYING ORDER IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Aug. , 1984 Docket C-2855. Consent Order, Dec. 1976-Modifying Order, This Order reopens the proceeding and modifies the Consent Order entered against The 88 F. C. 955. American College of Obstetricians and Gynecologists ("ACOG"), Pursuant to ACOG's request, the Order has been modified by deleting Paragraph IHB), which barred the association from advising in favor of or against any relative value scale developed by third parties; and by inserting a provision identical to that contained in the Commission Order entered against Michigan State Medical Society, 101 F. C. 191. This provision allows ACOG more freedom to discuss any issue, including reimbursement, with third-party payers and governmental entities. ORDER REOPENING AND MODIFYING FINAL ORDER By petition fied May 2, 1984, the American College of Obstetricians and Gynecologists ("ACOG") asked the Commission to reopen and modify the Commission order in Docket No. C-2855 entered by con- C. 955J. sent against ACOG on December 14, 1976 ("Order ) (88 F. ACOG requested that the Commission modify the Order by a) deleting Paragraph lI(E) ofthe Order, which prohibits ACOG from advising in favor of or against any relative value scale developed by third parties (except that ACOG is permitted to provide historical data), and b) inserting a provision identical to a provision contained in the Commission s Order in Michigan State Medical Society, Docket No. 9129, 101 C. 191 (1983) ("Michigan State that would allow ACOG more freedom to discuss issues relating to reimbursement with third-party payers and governmental entities. ACOG's petition was placed on the public record and no comments were received. Upon consideration of ACOG's petition and other relevant information, the Commission finds that the public interest would be served by deleting Paragraph lI(E) ofthe Order and by inserting the relevant provision contained in the order in Michigan State. ACOG has demonstrated that the Order s restriction on ACOG's ability to discuss relative value scales with third-party payers and governmental entities has caused injury to ACOG and the public that outweighs any benefit that may be derived from the restriction. Modification is also consists decision in Michigan State. ent with the Commission The Order continues to prohibit ACOG from developing or circulat- A1Vlt.lHCA1 CULL"' ljt. Uf- ' UHbTKl'ilClANb ANU unit.CULUul::T 524 Modifying Order ing its own relative value guide for use by its members. In addition although the Order no longer wil prohibit ACOG from discussing relative value scales with governmental entities and third-party payers, serious antitrust concerns would arise were ACOG to negotiate or attempt to negotiate an agreement with any such party or engage in any type of coercive activity to effect such an agreement. Accordingly, It is ordered That this matter be, and it hereby is, reopened and that the Order in Docket No. C-2855 be modified 1) to delete Paragraph II(B) and to redesignate Paragraphs Ilc) and II(D) oftlle Order Paragraphs II(B) and mC) respectively; 2) to renumber Paragraphs , IV and V of the Order Paragraphs IV, V and VI respectively; and 3) to insert the following:

It is further ordered That this order shall not be construed to prevent ACOG from:

A. Exercising rights permitted under the First Amendment to the United States Constitution to petition any federal or state government, executive agency, or legislative body concerning legislation rules or procedures, or to participate in any federal or state administrative or judicial proceeding.

B. Providing information or views, on its own behalf or on behalf of its members, to third-party payers concerning any issue, including reimbursement.

Complaint 104 F'T.