95-10596. Proposed Final Judgment and Competitive Impact Statement  

  • [Federal Register Volume 60, Number 83 (Monday, May 1, 1995)]
    [Notices]
    [Pages 21218-21222]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-10596]
    
    
    
    -----------------------------------------------------------------------
    
    DEPARTMENT OF JUSTICE
    Antitrust Division
    
    
    Proposed Final Judgment and Competitive Impact Statement
    
        In the matter of: United States v. Oregon Dental Service.
    
        Notice is hereby given pursuant to the Antitrust Procedures and 
    Penalties Act, 15 U.S.C. 16 (b)-(h), that a proposed Final Judgment, 
    Settlement Agreement, and Competitive Impact Statement have been filed 
    with the United States District Court for the Northern District of 
    California in United States of America v. Oregon Dental Service, Civil 
    Action No. C95 1211 FMS. The Complaint in this case alleges that the 
    defendant and others engaged in a combination in unreasonable restraint 
    of interstate trade and commerce in violation of the Sherman Act, 15 
    U.S.C. 1. The proposed Final Judgment enjoins the defendant for five 
    years from maintaining, adopting, or enforcing a clause in its 
    contracts with dentists that requires the dentist to give the defendant 
    the lowest fees he or she offers to any person or dental plan. It also 
    enjoins the defendant from taking any other action, directly or 
    indirectly, to influence or attempt to influence dentists' discounting 
    of fees or participation in other dental plans. Finally, the proposed 
    Final Judgment enjoins the defendant from disclosing or in any way 
    directly revealing to dentists its maximum allowable or acceptable fee 
    for dental procedures.
        Public comment on the proposed Final Judgment is invited within the 
    statutory 60-day comment period, which runs from the date of this 
    notice. Such comments, and responses thereto, will be published in the 
    Federal Register and filed with the Court. Comments should be directed 
    to Christopher S. Crook, Acting Chief, San Francisco Office, Box 36046, 
    Antitrust Division, U.S. Department of Justice, San Francisco, 
    California 94102 (telephone: (415) 556-6300).
    Constance K. Robinson,
    Director of Operations, Antitrust Division.
    Barbara J. Nelson, Philip R. Malone, Carla G. Addicks, Antitrust 
    Division, U.S. Department of Justice, 450 Golden Gate Avenue, Box 
    36046, 10th Floor, San Francisco, California 94102-3478, (415) 556-
    6300, Attorneys for the United States
    In the United States District Court Northern District of California
    
    [Civil No. C95 1211 FMS]
    
        In the matter of: United States of America, Plaintiff, v. Oregon 
    Dental Service, Defendant.
    
    Complaint
    
        The United States of America, acting under the direction of the 
    Attorney General of the United States, brings this civil action to 
    obtain equitable and other relief against the defendant named herein, 
    and complains and alleges as follows:
    
    I. Jurisdiction and Venue
    
        1. This Complaint is filed by the United States under Section 4 of 
    the Sherman Act; 15 U.S.C. 4, as amended, to prevent and restrain a 
    continuing violation by the defendant of Section 1 of the Sherman Act, 
    15 U.S.C. 1.
        2. The defendant maintains an office, transacts business, and is 
    found within the Northern District of California, within the meaning of 
    15 U.S.C. 22 and 28 U.S.C. 1391(c).
    
    II. Defendant
    
        3. Oregon Dental Service (``ODS''), is a corporation organized and 
    existing under the laws of the State of Oregon with its principal place 
    of business in Portland, Oregon. ODS provides dental coverage to 
    employees of Oregon corporations and others. Certain of those employees 
    are located in the Northern District of California.
        4. ODS is a non-profit corporation whose participating providers 
    consist of dentists licensed to practice in Oregon and who execute 
    participating provider agreements with ODS. At material times, dentists 
    comprised the majority of the Board of Directors of ODS. At material 
    times, in excess of ninety percent of dentists licensed to practice in 
    Oregon were participating providers of ODS.
        5. Various firms and individuals, not named as defendants in this 
    Complaint, have entered into agreements with ODS in violation of the 
    Sherman Act as alleged in this Complaint, and have performed acts and 
    made statements in furtherance thereof.
    
    III. Trade and Commerce
    
        6. At material times, ODS has engaged in the business of providing 
    dental insurance coverage. ODS contracts directly with individual 
    dentists and groups of dentists for the provision of dental services to 
    persons covered by ODS' dental insurance plans. Participating dentists 
    agree to comply with the terms of the contractual agreements with ODS, 
    and to abide by ODS' rules and policies.
        7. ODS compensates participating dentists on the basis of submitted 
    fee schedules. At material times, payments from ODS to Oregon dentists 
    constituted a significant portion of most individual participating 
    dentist's receipts from the provision of dental services to patients.
        8. At material times, ODS' ``Participating Dentist Rules and 
    Policies'' contained provisions known as ``most favored nation'' 
    clauses. These provisions stated that, for example, the ``lowest fee 
    accepted by the Dentist for services to be rendered to any group shall 
    constitute the Dentist's filed fee scheduled for payment of ODS Health 
    Plan claims.''
        9. ODS' enforcement of the most favored nation clauses in its rules 
    and policies resulted in most participating dentists' refusal to 
    discount their fees to non-ODS patients or competing dental plans.
        10. ODS' most favored nation clauses have caused significant 
    numbers of dentists to drop out of or refuse to join competing discount 
    dental plans. Because such a large percentage of Oregon dentists 
    participate with ODS' plan, the ODS most favored nation clauses have 
    resulted in many competing dental plans being unable to attract and/or 
    retain sufficient numbers of dentists to serve their members.
        11. ODS periodically determines the amount it will pay for 
    procedures to participating dentists based upon fee filings submitted 
    by the participating dentists. A majority of these dentists used the 
    fee schedule they filed with ODS as their fee schedule for all other 
    patients, including those covered by other insurance plans and 
    uninsured patients.
        12. ODS sets the maximum fee allowable for a particular procedure 
    at the 90th percentile of all fees submitted to it by participating 
    dentists (the level at or above the fee charged by 90% of participating 
    dentists). If 10 or fewer of a dentist's submitted fees are above the 
    90th percentile, ODS notifies the dentist of the amount of the maximum 
    allowable fee. Most participating dentists file fee schedules proposing 
    to charge more than the maximum [[Page 21219]] allowable fee for 10 or 
    fewer procedures; when one of these dentists is advised of the exact 
    maximum allowable fees, he or she is able to lower the fees no more 
    than necessary to obtain approval from ODS. If the dentist agrees to 
    charge the maximum allowable amount, the dentist signs the notification 
    and returns it to ODS.
        13. Most dentists who are participants with ODS are in independent, 
    private practices and are in actual or potential competition with other 
    participating dentists for the provision of dental services.
        14. At material times, ODS and participating dentists have utilized 
    interstate banking facilities and purchased not insubstantial 
    quantities of goods and services from outside the state of Oregon, for 
    use in providing dental insurance coverage or dental services to 
    patients.
        15. The activities of ODS that are the subject of this Complaint 
    have been within the flow of, and have substantially affected, 
    interstate trade and commerce.
    
    IV. Violation Alleged
    
        16. Beginning at a time unknown to the plaintiff and continuing 
    through at least September 1994, ODS and others engaged in a 
    combination in unreasonable restraint of interstate trade and commerce 
    in violation of Section 1 of the Sherman Act, 15 U.S.C. ODS voluntarily 
    abandoned the combination in September, 1994, but this offense is 
    likely to recur unless the relief hereinafter sought is granted.
        17. For the purpose of forming and effectuating this combination, 
    ODS did the following things, among others:
        (a) Adopted and enforced most favored nation clauses in the 
    contracts with dentists and in rules and policies the dentists agreed 
    to abide by, and
        (b) Received and disseminated information on the maximum allowable 
    fees for certain procedures, and obtained signed commitments from 
    participating dentists to charge the maximum allowable fees.
        18. These agreements had the following effects, among others:
        (a) Price competition among dentists for the provision of dental 
    services has been unreasonably restrained and fees for such services 
    have been stabilized at a level higher than they might otherwise have 
    been;
        (b) Price competition among dental insurance plans has been 
    unreasonably restrained; and
        (c) Consumers of dental services in Oregon have been deprived of 
    the benefits of free and open competition.
    
    V. Prayer
    
        Wherefore, the plaintiff prays:
        1. That the Court adjudge and decree that ODS engaged in an 
    unlawful combination in unreasonable restraint of interstate trade and 
    commerce in violation of Section 1 of the Sherman Act, 15 U.S.C. 1, as 
    alleged in the Complaint.
        2. That ODS, its members, officers, directors, agents, employees, 
    and successors and all other persons acting or claiming to act on its 
    behalf be enjoined, restrained and prohibited for a period of five 
    years from, in any manner, directly or indirectly, continuing, 
    maintaining, or renewing the alleged agreements, or from entering into 
    any other agreement, understanding, plan, program, or other arrangement 
    having a similar purpose or effect as the alleged agreements.
        3. That the United States have such other relief as the nature of 
    the case may require and the Court may deem just and proper.
    
        Dated: April 10, 1995.
    Anne K. Bingaman,
    Assistant Attorney General.
    Mark C. Schechter,
    Deputy Director of Operations.
    Christopher S. Crook,
    Acting Chief, San Francisco Office. Antitrust Division, U.S. Department 
    of Justice.
    Barbara J. Nelson,
    Philip R. Malone,
    Carla G. Addicks,
    Attorneys, Antitrust Division, U.S. Department of Justice.
        Barbara J. Nelson, Philip R. Malone, Carla G. Addicks, Antitrust 
    Division, U.S. Department of Justice, 450 Golden Gate Avenue, Box 
    36046, 10th Floor, San Francisco, California 94102-3478, (415) 556-
    6300, Attorneys for the United States.
    In the United States District Court Northern District of California
    [Civil No. C95 1211 FMS]
        In the matter of: United States of America, Plaintiff, v. Oregon 
    Dental Service, Defendant.
    
    Stipulation
    
        It is stipulated by and between the undersigned parties, by their 
    respective attorneys, that:
        1. The Court has jurisdiction over the subject matter of this 
    action and over each of the parties thereto, and venue of this action 
    is proper in the Northern District of California;
        2. The parties consent that a Final Judgment in the form hereto 
    attached may be filed and entered by the Court, upon the motion of any 
    party or upon the Court's own motion at any time after compliance with 
    the requirements of the Antitrust Procedures and Penalties Act (15 
    U.S.C. 16), and without further notice to any party or other 
    proceedings, provided that plaintiff United States has not withdrawn 
    its consent, which it may do at any time before the entry of the 
    proposed Final Judgment by serving notice thereof on the defendant and 
    by filing that notice with the Court. The parties represent that they 
    have full authority to enter into this Stipulation.
        3. In the event plaintiff United States withdraws its consent or if 
    the proposed Final Judgment is not entered pursuant to this 
    Stipulation, this Stipulation shall be of no effect whatever and the 
    making of this Stipulation shall be without prejudice to any party in 
    this or any other proceeding.
        4. The parties agree that the Final Judgment resolves all disputes 
    between the parties as to the most favored nation clause and disclosure 
    of the maximum allowable fees. Plaintiff will not institute further 
    investigation of ODS with regard to the most favored nation clause or 
    disclosure of maximum allowable fees so long as ODS remains in 
    compliance with the terms of the Final Judgment, except for the 
    purposes of determining or securing compliance with the Final Judgment.
        5. ODS agrees to comply with the provisions of the Final Judgment 
    pending entry of the Final Judgment.
    
        Dated: March 28, 1995.
    
        For the United States:
    Barbra J. Nelson,
        For the Defendant:
    Timothy G. Beckler.
    In the United States District Court Northern District of California
        In the matter of: United States of America, Plaintiff v. Oregon 
    Dental Service, Defendant.
    [Civil No. C95 1211]
    
    Final Judgment
    
        Whereas, plaintiff, United States of America through its attorney, 
    filed its Complaint on     , 1995, alleging a violation of the Sherman 
    Act, 15 U.S.C. 1;
        Whereas, the defendant denies liability with respect to all matters 
    subject of the complaint;
        Whereas, there has been no determination by the Court that a 
    violation of law has occurred;
        Whereas, the plaintiff and defendant desire to resolve their 
    disputes without trial or adjudication of any issue of law or fact; and
        Whereas, this Final Judgment shall not be evidence against or an 
    admission by any party with respect to any issue of law or 
    fact; [[Page 21220]] 
        Now therefore, before the taking of any testimony and without trial 
    or adjudication of any issue of law or fact herein, it is hereby 
    ordered, adjudged, and decreed as follows:
    
    I. Jurisdiction
    
        This Court has jurisdiction of the subject matter of this action 
    and of each of the parties consenting hereto. The Complaint states a 
    claim upon which relief may be granted against the defendant under 
    Section I of the Sherman Act, 15 U.S.C. 1.
    
    II. Definitions
    
        As used herein, the term:
        (A) ``ODS'' means Oregon Dental Service;
        (B) ``Most Favored Nation Clause'' or ``MFN'' means those 
    provisions in the defendant's participating dentist agreements that 
    prior to September 28, 1994, required that the lowest fee accepted by 
    the participating dentist for services rendered to any group 
    constituted the dentist's filed fee schedule for payment of ODS claims.
    
    III. Applicability
    
        (A) This Final Judgment applies to ODS and to ODS' officers, 
    employees, members acting as corporate policy makers, directors, 
    successors, assigns, subsidiaries, divisions and any other 
    organizational units of any kind, and to all other persons in active 
    concert or participation with any of them. Within 60 days of entry, ODS 
    shall provide a copy of this Final Judgment by mail or personal service 
    to ODS' officers, directors and managerial employees. Thereafter, ODS 
    shall distribute in a timely manner a copy of this Final Judgment to 
    any new officer, director, or managerial employee.
        (B) Nothing herein contained shall suggest that any portion of this 
    Final Judgment is or has been created for the benefit of any third 
    party and nothing herein shall be construed to provide any rights to 
    any third party.
    
    IV. Injunction
    
        (A) ODS is enjoined and restrained from:
        (1) Maintaining, adopting, or enforcing an MFN or similar provision 
    in participating dentist agreements or by any other means or methods;
        (2) Taking any other action, directly or indirectly, to influence 
    or attempt to influence any dentist to refrain from offering discount 
    fees to any person or dental plan or to refrain from participating in 
    any dental plan;
        (3) Disclosing or in any way directly revealing to a dentist or 
    dentists the maximum allowable or acceptable fee for a dental procedure 
    or procedures.
    
    V. Retention of Jurisdiction
    
        Jurisdiction is retained by the Court for the purpose of enabling 
    either party to this Final Judgment to apply to this Court at any time 
    for further orders and directions as may be necessary or appropriate to 
    carry out or construe this Final Judgment, modify it on the basis of 
    changed circumstances, terminate any of its provisions, enforce 
    compliance, and punish violations of its provisions.
        Nothing in this provision shall give standing to any person not a 
    party to this Final Judgment to seek any relief related to it.
    
    VI. Access to Information
    
        For the purposes of determining or securing compliance with the 
    Final Judgment, from time to time:
        (A) Duly authorized representatives of the United States, upon 
    written request of the Assistant Attorney General in charge of the 
    Antitrust Division, and on reasonable notice to ODS, shall be 
    permitted, subject to any legally recognized privilege, access, during 
    office hours, to inspect and copy all books, ledgers, accounts, 
    correspondence, memoranda and other records and documents in the 
    possession or under the control of ODS relating to any matters 
    contained in this Final Judgment; and
        (B) In the event that the plaintiff has reasonable cause to believe 
    that ODS had not complied with the terms of this Final Judgment, then 
    upon the written request of the Assistant Attorney General in charge of 
    the Antitrust Division, ODS shall submit such written reports, under 
    oath if requested, with respect to any of the matter contained in this 
    Final Judgment.
        ODS shall have the right to be represented by counsel in any such 
    process.
        Any information provided to the plaintiff under this section of the 
    Final Judgment shall be kept confidential by the plaintiff and shall 
    not be disclosed to third parties except as necessary to enforce the 
    Final Judgment or as otherwise previously agreed or required by law.
        Nothing in this Final Judgment prohibits the plaintiff from using 
    any other investigatory method authorized by law.
    
    VII. Term
    
        This Final Judgment shall expire five years from the date of its 
    entry.
    
    VIII. Public Interest
    
        Entry of this Final Judgment is in the public interest.
    
        Dated this ________ day of ____________, 1995.
    
    United States District Judge.
    
    In the United States District Court Northern District of California
        In the matter of: United States of America, Plaintiff, v. Oregon 
    Dental Service, defendant.
    
    [Civil No. C95 1211]
    
    Competitive Impact Statement
    
        Pursuant to Section 2(b) of the Antitrust Procedures and Penalties 
    Act, 15 U.S.C. Sec. 16(b)-(h), the United States submits this 
    Competitive Impact Statement relating to the proposed Final Judgment 
    (or ``the Judgment'') submitted for entry against and with the consent 
    of Oregon Dental Service (``ODS'' or ``the defendant'') in this civil 
    proceeding.
    
    I. Nature and Purpose of the Proceeding
    
        On April 10, 1995, the United States filed this single-count civil 
    antitrust suit alleging that ODS, an Oregon non-profit corporation 
    which does business in the Northern District of California, entered 
    into a combination in unreasonable restraint of trade consisting of 
    agreements to restrain price competition for dental services in 
    violation of Section 1 of the Sherman Act, 15 U.S.C. 1. Plaintiff asked 
    the Court to find that the defendant has violated Section 1 of the 
    Sherman Act and further asked the Court to enjoin the continuation of 
    the combination.
        Entry of the proposed Final Judgment will terminate the action, 
    except that the Court will retain jurisdiction over the matter for any 
    further proceedings required to interpret, enforce or modify the 
    judgment or to punish violations of any of its provisions.
    
    II. Practices Giving Rise to the Violation
    
        ODS is an Oregon non-profit corporation. ODS' principal place of 
    business is in Portland, Oregon. It was created by the Oregon Dental 
    Association, a professional association of dentists. Dentists hold the 
    majority of positions on ODS' Board of Directors. ODS contracts with 
    businesses, governmental agencies, and other organizations to provide 
    pre-paid dental care coverage to their employees. ODS contracts 
    directly with dentists or groups of dentists to provide dental services 
    to patients who are members of those covered groups. [[Page 21221]] 
        ODS compensates its participating provider dentists for their 
    services on the basis of a fee for service, determined in part through 
    fee schedules submitted by each dentist. ODS sets its maximum allowable 
    fee at the 90th percentile of all fees for a procedure submitted to it 
    by participating dentists. That is, the maximum allowable fee is equal 
    to or greater than the fees charged by 90% of participating dentists. 
    If 10 or fewer of a dentist's filed fees are above this 90th 
    percentile, ODS informs the dentist of the maximum amount that it will 
    pay for the service. Most participating dentists file fee schedules 
    proposing to charge above the maximum allowable fee for 10 or fewer 
    procedures, so they are informed of exactly what fee they may charge 
    and can avoid lowering their fees more than necessary to receive 
    payment from ODS. If the dentist agrees to charge that amount, he or 
    she signs the notification and returns it to ODS.
        In excess of 90 percent of the dentists in the state of Oregon have 
    provider contracts with ODS. For most of these dentist, payments from 
    treatment of ODS patients are a significant part of their income. Most 
    of these dentists are in independent, private practice and actually or 
    potentially compete with other participating ODS dentists to provide 
    dental service to both ODS and non-ODS patients.
        ODS' participating dentists agree to abide by ODS rules and 
    policies, which contain what is called a ``most favored nation'' clause 
    (``MFN''). The MFN requires that each dentist charge ODS the lowest 
    price that dentist charges any other group. Accordingly, if a dentist 
    reduces fees to a competing dental plan, the MFN requires that the 
    dentist also reduce fees to ODS. The United States alleges that the 
    effect of the MFN has been to require participating ODS dentists to 
    charge other dental plans and non-ODS patients fees that are as high as 
    or higher than the fees charged to ODS.
        The Complaint alleges that, beginning at a time unknown to the 
    plaintiff and continuing through at least September 1994, ODS and 
    others engaged in a combination in unreasonable restraint of interstate 
    trade and commerce in violation of Section 1 of the Sherman Act, 15 
    U.S.C. 1. The Complaint alleges that the combination ended in September 
    1994, when ODS voluntarily terminated the MFN for business reasons.
        To form and effectuate this combination, ODS adopted and enforced 
    an MFN in its rules and policies which dentists were contractually 
    obligated to adhere to, received and disseminated information on the 
    maximum allowable fees for certain procedures, and obtained signed 
    commitments from participating dentists to charge the maximum allowable 
    fees.
        Had this case proceeded to trial, the plaintiff was prepared to 
    prove that the combination unreasonably restrained price competition 
    among dentists and between other dental insurance plans and ODS, and 
    stabilized prices for dental services.
        ODS' adoption and enforcement of the MFN restrained price 
    competition among Oregon dentists for the provision of dental services 
    because it caused significant numbers of dentists to refuse to discount 
    their fees. Before the MFN was enforced, certain Oregon dentists had 
    reduced their fees to ODS competitors in order to participate in the 
    competitors' managed-care plans. Others had indicated a willingness to 
    do so.
        After ODS began enforcing the MFN, however, most participating 
    dentists refused to discount their fees to non-ODS patients or 
    competing discount dental plans because, if they did, the MFN would 
    require them to also lower all of their fees to ODS. Since most 
    dentists in Oregon receive a significant portion of their income from 
    treating ODS patients, the cost to those dentists of discounting their 
    fees on non-ODS patients or competing dental care plans became too 
    great to justify discounting. For the same reason, it was too costly 
    for most dentists to drop their participation in ODS' plan in order to 
    avoid the MFN and be able to discount their fees to competing discount 
    dental plans. Consequently, the MFN substantially reduced discounting 
    that was occurring and, had it continued in force, would have deterred 
    future discounting.
        The plaintiff was also prepared to prove that the combination 
    unreasonably restrained competition between ODS and other dental 
    insurance plans. Because of the MFN and its effect on the willingness 
    of dentists to join discount dental plans, competing discount plans 
    were unable to attract and keep a sufficiently large qualified, and 
    geographically varied panel of dentists to adequately serve their 
    members and make their plans commercially marketable to employer and 
    other groups. Some plans left the market or had their ability to 
    attract and serve patient groups severely restricted, leading to a 
    substantial reduction in their ability to complete with ODS.
        The combination deprived Oregon consumers of price competition 
    among dentists who stopped discounting their fees. Consumers were also 
    deprived of choices of competing dental insurance plans offering 
    different combinations of dentists, services, and prices.
        Moreover, the plaintiff was prepared to prove that ODS' revealing 
    the maximum acceptable fees to those dentists with 10 or fewer 
    procedures over the maximum prevented those fees from falling below the 
    maximum and effectively stabilized those fees at the maximum acceptable 
    level--a level higher than they might otherwise have been. As a result, 
    consumers were further deprived of price competition among dentists.
    
    III. Explanation of the Proposed Final Judgment
    
        The plaintiff and ODS have stipulated that the Court may enter the 
    proposed Final Judgment after compliance with the Antitrust Procedures 
    and Penalties Act, 15 U.S.C. 16(b)-(h). The proposed Final Judgment 
    provides that its entry does not constitute any evidence against or 
    admission of any party with respect to any issue of law or fact.
        Under the provisions of Section 2(e) of the Antitrust Procedures 
    and Penalties Act, 15 U.S.C. 16(e), the proposed Final Judgment may not 
    be entered unless the Court finds that entry is in the public interest. 
    Section VIII of the proposed Final Judgment sets forth such a finding.
        The proposed Final Judgment is intended to ensure that ODS does not 
    reinstate its MFN and ceases disclosing its maximum allowable fees to 
    participating dentists. The proposed Final Judgment also prohibits ODS 
    from taking any other action that may influence dentists' decisions 
    regarding the discounting of fees.
    
    A. Scope of the Proposed Final Judgment
    
        Section III of the proposed Final Judgment provides that the Final 
    Judgment shall apply to ODS and to ODS' officers, employees, members 
    acting as corporate policy makers, directors, successors, assigns, 
    subsidiaries, divisions and any other organizational units of any kind, 
    and to all other persons in active concert or participation with any of 
    them.
        In the Stipulation to the proposed Final Judgment, ODS has agreed 
    to be bound by the terms of the proposed Final Judgment, pending its 
    approval by the Court.
    
    B. Prohibitions and Obligations
    
        Under Section IV of the proposed Final Judgment, ODS is enjoined 
    and restrained for a period of five years from maintaining, adopting, 
    or enforcing an MFN or similar provision in 
    [[Page 21222]] participating dentist agreements or by any other means 
    or methods, or by taking any other action, directly or indirectly, to 
    influence or attempt to influence any dentist to refrain from offering 
    discount fees to any person or dental plan or to refrain from 
    participating in any dental plan. ODS is also enjoined and restrained 
    for a period of five years from disclosing or in any way directly 
    revealing to a dentist or dentists the maximum allowable or acceptable 
    fee for a dental procedure or procedures.
        The proposed Final Judgment also provides that the plaintiff will 
    have access to information to enforce the judgment.
    
    C. Effect of the Proposed Final Judgment on Competition
    
        The relief required by the proposed Final Judgment will prohibit 
    reinstatement of a substantial restraint on price competition among 
    dentists and between ODS and other dental plans in Oregon, by ensuring 
    that ODS will not adopt or enforce the limitations on dentists' 
    abilities to discount created by the MFN. The proposed Final Judgment 
    will also prohibit ODS from taking any other action which might 
    discourage participating dentists from discounting or participating in 
    competing discount plans. As a result, dentists will be free to 
    discount or to join other discount plans, and discount dental plans 
    will no longer be prevented by ODS' actions from attracting and 
    maintaining viable panels of dentists to serve their members.
        Finally, the relief required by the proposed Final Judgment will 
    prohibit ODS' dissemination of the maximum fee amount for particular 
    procedures. Without the information provided by ODS, dentists will have 
    to determine independently the fees to charge for their services.
        The prohibitions in the proposed Final Judgment will restore to 
    dental consumers the benefits of free and open competition that were 
    suppressed by ODS' adoption and enforcement of the MFN. The proposed 
    Final Judgment prohibits ODS from reinstating the MFN during the term 
    of the Final Judgment.
    
    IV. Alternatives to the Proposed Final Judgment
    
        The alternative to the proposed Final Judgment is a full trial on 
    the merits of the case. Such a trial would involve substantial cost to 
    the United States and the defendant and is not warranted because the 
    proposed Final Judgment provides all the relief that is needed to 
    remedy the violations of the Sherman Act alleged in the United States' 
    complaint.
    
    V. Remedies Available to Private Litigants
    
        Section 4 of the Clayton Act, 15 U.S.C. 15, provides that any 
    person who has been injured as a result of conduct prohibited by the 
    antitrust laws may bring suit in federal court to recover three times 
    the damages suffered, as well as costs and reasonable attorney's fees. 
    Entry of the proposed Final Judgment will neither impair nor assist in 
    the bringing of such actions. Under the provisions of Section 5(a) of 
    the Clayton Act, 15 U.S.C. 16(a), the Final Judgment has no prima facie 
    effect in any subsequent lawsuits that may be brought against the 
    defendant in this matter.
    
    VI. Procedures Available for Modification of the Proposed Final 
    Judgment
    
        As provided in the Antitrust Procedures and Penalties Act, any 
    person believing that the proposed judgment should be modified may 
    submit written comments to Christopher S Crook, Acting Chief, San 
    Francisco Office, Department of Justice, Antitrust Division, 450 Golden 
    Gate Avenue, San Francisco, California, 94102-3478, within the 60-day 
    period provided by the Act. These comments, and the plaintiff's 
    responses to them, will be filed with the Court and published in the 
    Federal Register. All comments will be given due consideration by the 
    Department of Justice, which remains free, pursuant to the Stipulation, 
    to withdraw its consent to the proposed Final Judgment at any time 
    prior to its entry if The Department should determine that some 
    modification of the judgment is necessary to the public interest. The 
    proposed Final Judgment provides that the Court will retain 
    jurisdiction over this action, and that the parties may apply to the 
    Court for such orders as may be necessary or appropriate for the 
    modification, interpretation, or enforcement of the Judgment.
    
    VII. Determinative Documents
    
        No materials and documents of the type described in Section 2(b) of 
    the Antitrust Procedures and Penalties Act, 15 U.S.C. 16(b), were 
    considered in formulating the proposed Judgment. Consequently, none are 
    filed herewith.
    
        Dated: April 10, 1995.
    
        Respectfully submitted,
    Barbara J. Nelson,
    Phillip R. Malone,
    Carla G. Addicks,
    Antitrust Division, U.S. Department of Justice.
    [FR Doc. 95-10596 Filed 4-28-95; 8:45 am]
    BILLING CODE 4410-01-M
    
    

Document Information

Published:
05/01/1995
Department:
Antitrust Division
Entry Type:
Notice
Document Number:
95-10596
Pages:
21218-21222 (5 pages)
PDF File:
95-10596.pdf