Case Description
Health system sought to purchase two cardiology practice groups in the Portland Maine area and employ them at its Portland hospital. On two previous occasions, the practice groups had sought to merge and the Attorney General had disapproved the transaction. The parties agreed to a settlement for a term of five years under which MaineHealth would 1) offer payors the option to pay a rate for cardiology services no greater than the rate paid to other cardiologists in Maine; 2) will not increase the rates it charged for cardiology services by a rate greater than the weighted average increase in charges for all hospital services; 3) the physicians will not seek higher rates as a result of their move from physician offices to the hospital, and will continue to bill for professional services; 4) MaineHealth agreed to limit its operating margin to 3 percent, and if that amount is exceeded, to lower its prices; 5) there will be no restrictive covenants in the agreements with the cardiologists; 6) the cardiologists salaries and bonuses are prescribed; 7) the cardiologists must be able to participate in other networks; and other provisions.