Michigan Dentists Warned: Antitrust Laws Can Have a Bite
The Michigan Dental Association (MDA) issued a reminder to its members today about the importance of complying with antitrust laws. These laws are in place to ensure fair competition in the dental marketplace, and violating them can lead to serious consequences for dentists.
The warning comes amid a history of the U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) cracking down on anti-competitive practices in the healthcare industry, including dentistry. These actions often target activities like collective price-fixing or coordinated refusals to participate in certain insurance plans.
What Dentists Need to Know:
- Don’t Make Deals with Competitors: Antitrust laws prohibit agreements between competing dentists that limit competition. This applies to both written and informal agreements, even those arising from casual conversations.
- Price-Fixing is a No-Go: Discussing fees with competitors, even if there’s no explicit agreement to set prices, can be viewed as an attempt to control prices and is illegal.
- Group Boycotts Are Off Limits: Dentists cannot band together to refuse participation with specific insurance plans or specialists.
The Sting of Non-Compliance:
Violating antitrust laws can have serious repercussions. The DOJ and the state of Michigan can pursue criminal charges, potentially leading to jail time and hefty fines. Additionally, private parties may sue for damages.
Staying on the Right Side of the Law:
- Silence is Golden: Dentists are advised to avoid conversations about fees with other dentists, even at professional meetings.
- Be an Independent Operator: Make decisions on pricing and insurance participation based on your individual practice needs, not through discussions with competitors.
- Seek Expert Advice: If you’re unsure about a situation, consult with an attorney specializing in healthcare law.
By understanding and adhering to antitrust laws, Michigan dentists can protect themselves from legal trouble and ensure they operate in a fair and competitive market that benefits both dentists and patients.
