You Decide

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Date Submitted: 02/07/2012 03:51 PM

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YOU DECIDE: MANAGE CARE PLAN ENROLLMENT

You Decide: Manage Care Plan Enrollment

YOU DECIDE: MANAGE CARE PLAN ENROLLMENT

The first step that ABC Insurance Company should do is the conduction of some research in regards what Verde Greene Hospital wants them to do in order to get with their contract. ABC has always taken in consideration what employers wants and how to provide services for their costumers. They should analyze how much they will win or loose if they get the contract with the stipulations that Verde Greene Hospital has requested. If they agree they should consider an antitrust behavior and consider the two laws that controls those type of action:

1. The Sherman Act (1890)

“Section 1: Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several states, or with foreign nations, is hereby declared to be illegal. (Stone, 2011)”

2. The Clayton Act (1914)

“Section 2: It shall be unlawful for any person engaged in commerce . . . to discriminate in price between different purchasers of commodities of like grade and quality . . . where the effect of such discrimination may be substantially to lessen competition or tend to create a monopoly in any line of commerce, or to injure, destroy, or prevent competition (Stone, 2011).”

Is evident that Verde Greene Hospital as a condition to sign the contract imposed ABC to get exclusivity and be the only provider in cardiac and maternity services for the 14 counties that they served. Verde Greene Hospital is getting into the antitrust practice and monopolistic behavior and if they get involve and agree; hospitals, providers and insurers can sue them.

YOU DECIDE: MANAGE CARE PLAN ENROLLMENT

In the other hand Verde Greene Hospital should take into consideration how this behavior can affect their good reputation. This behavior will show that they only care about the business and not in the patient quality of care. If they...