Certified registered nurse anesthetists (CRNAs) compete with physician-anesthesiologists (MDAs) to provide anesthesia services. BCB Anesthesia Care, Ltd.
Question:
During the last five months of that year, BCB and other staff physicians performed all but three anesthesia procedures at the hospital. However, BCB alleges that Dr. Roodhouse billed patients and third-party payers for services he did not perform, causing patients to complain about double billing and interfering with BCB’s ability to collect payments. Dr. Roodhouse also derided BCB’s billing practices to local physicians, causing them to believe that BCB billings were either too high or unethical. Beginning in April of the following year, Dr. Roodhouse scheduled anesthesia services at the hospital so as to perform the majority of those services during that month. On May 20, Passavant terminated its contract with BCB. Subsequently, Passavant entered into an agreement with Dr. Roodhouse and raised the price it charged patients for anesthesia from $11 to $17 per unit.
Does this conduct constitute an illegal (a) conspiracy in restraint of trade, (b) tying agreement between Passavant and Dr. Roodhouse, (c) boycott of the nurse anesthetists, or (d) price fixing agreement?
Step by Step Answer:
Essentials of Business Law and the Legal Environment
ISBN: 978-0324303957
9th edition
Authors: Richard A. Mann, Barry S. Roberts