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DOJ allows Michigan hospital network. (Industry Scan).

Seven small, geographically dispersed community hospitals in Michigan can form a network to negotiate contracts on their behalf with insurance companies, employers, and managed care organizations, according to the U.S. Department of Justice (DOJ). In a business review letter, the DOJ stated

that the network, as proposed, would pose no threat to competition in the areas served by the members of the network, Michigan Hospital Group, Inc. (MHG), because the seven hospitals do not compete with one another in the geographic areas surrounding each hospital.

MHG will collect and analyze data from each hospital to negotiate managed care contracts on behalf of its members. All proprietary data collected from the participating hospitals will be treated confidentially. No member will have access to another member's costs or prices. MHG will be a nonexclusive network, and its members will remain free at all times to contract individually with healthcare plans and other payers or to join with other provider networks.

The participating MHG hospitals are Charlevoix Area Hospital, Charlevoix; Community Health Center of Branch County, Coldwater; Gratiot Community Hospital, Alma; Marlette Community Hospital, Marlette; Memorial Medical Center of West Michigan, Ludington; Pennock Hospital, Hastings; and West Branch Regional Medical Center, West Branch. The hospitals range in size from 33 to 127 beds and have an average daily patient census of 15 to 70. Six of the hospitals have fewer than 100 beds and an average daily patient census of less than 60.

Under the DOJ'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 antitrust laws.

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