FTC Strengthens Local Medical Societies' Authority to Review and Discipline Physicians

The Federal Trade Commission (FTC) has issued an advisory opinion granting local medical societies more authority to review and discipline physicians for fee-gouging and other abusive conduct. This decision was made in response to a joint petition filed by the American Medical Association (AMA) and the Chicago Medical Society. The opinion allows county medical societies to expel members found guilty of charging exploitative fees, subject to certain conditions.

This development is significant as it enables local medical societies to take a more active role in protecting patients from unscrupulous physicians. Under the new guidelines, societies can require members to participate in a fee peer-review process and make information about expelled members public. The FTC has also provided guidelines for establishing patient grievance committees to render nonbinding opinions on the reasonableness of fees charged to patients and insurers.

Key Takeaways:

• The FTC has given local medical societies more authority to review and discipline physicians for fee-gouging and other abusive conduct.
• County medical societies can expel members found guilty of charging exploitative fees, subject to conditions such as fraud, deception, undue influence, or unneeded services.
• Societies can require members to participate in a fee peer-review process and provide information about expelled members to the state medical society.
• The FTC has also provided guidelines for establishing patient grievance committees to render nonbinding opinions on the reasonableness of fees charged to patients and insurers.
• The AMA and Chicago Medical Society filed a joint petition for this protection for patients two years ago.
• The AMA had been trying for seven years before that to get the issue on the table at the FTC.
• The health care marketplace has changed significantly since the petition was filed, with patients now facing the worry of wholesale service cuts under managed care.

Statistics:

• 2 years: The amount of time it took for the AMA and Chicago Medical Society to get a decision from the FTC on this issue.
• 7 years: The amount of time the AMA spent trying to get the issue on the table at the FTC before filing the joint petition.
• The number of years it took for the government to act on a proposal to strengthen the ability of local medical societies to review and discipline physicians.

Sources:

• FTC Advisory Opinion, [No publication date provided]
• Joint Petition by the AMA and Chicago Medical Society
• AMA press release, February [No date provided]
• Chicago Tribune, February [No date provided]