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FOR IMMEDIATE RELEASE                                                    AT

THURSDAY, DECEMBER 8, 1994                                   (202) 616-2771

                                                         TDD (202) 514-1888



                                     





               JUSTICE DEPARTMENT APPROVES PROPOSAL TO FORM

                RADIOLOGIST PHYSICIAN JOINT VENTURE NETWORK



     Washington, D.C. -- The Department of Justice's Antitrust Division

today approved a proposal by the Chicagoland Radiological Network to form a

network to offer managed care contracts to third-party payers.  The plan

could reduce radiologist costs to residents in eight counties near Chicago.

     The Department's position was stated in a business review 

letter from Assistant Attorney General Anne K. Bingaman, in 

charge of the Antitrust Division, to counsel for CRN.

     Bingaman said the proposal would allow third-party

payers to enter into a single contract for radiologist services.  In the

past, managed care payers often have had to contract separately for

inpatient and outpatient radiologist services and for professional and

facility fees.

     Bingaman also stated that the radiologist network is not likely to

adversely affect competition because any attempt by the participating

radiologists to exercise market power would be defeated by the variety of

competing alternatives available to payers.

     Under the Department's business review procedure, an organization may

submit a proposed action to the Antitrust Division and receive a statement

as to whether the Division will challenge the action under the antitrust

laws.

     A file containing the business review request and the Department's

response may be examined in the Legal Procedure Unit of the Antitrust

Division, Room 3235, Department of Justice, Washington, D.C. 20530.  After

a 30-day waiting period, the document supporting the business review will

be added to the file.

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