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FOR IMMEDIATE RELEASE
FRIDAY, MAY 12, 1995 |
AT (202) 616-2771 TDD (202) 514-1888 |
JUSTICE DEPARTMENT APPROVES PROPOSAL THAT WILL ASSIST CONSUMERS IN SELECTION OF LONG-TERM HEALTH CARE PROVIDERS
WASHINGTON, D.C. A subsidiary of Beverly Enterprises Inc., the
nation's largest operator of nursing homes, will be allowed to provide
a nationwide database on services offered by nursing homes and other
long-term health care facilities under a proposal approved today by
the Department of Justice's Antitrust Division.
Assistant Attorney General Anne K. Bingaman, in charge of the Department's
Antitrust Division, said that the proposal appears to meet a consumer
need, and should promote competition by facilitating informed consumer
choice. The Department's position was stated in a business review letter
to the subsidiary's counsel from Bingaman.
The subsidiary, AdviNet Inc., will develop a nationwide service database
and contract with employers, insurers, associations and individuals
to make such information available for specific geographic areas to
employees, group members or individuals who call a toll-free telephone
number.
Beverly operates more than 700 nursing facilities in 34 states.
AdviNet's database will include publicly available information on all
licensed facilities, but more detailed information will be available
from operators who become participating providers in the network. Participation
will be open to any provider that meets objective health, safety and
quality standards. No fee will be charged to a participating provider.
Participating providers will be encouraged, but not required to offer
a discount to AdviNet customers. The amount of any discount will be
for the provider to determine.
In addition to providing information on long-term care facilities in
a geographic area, AdviNet will assist in scheduling site visits by
customers. It will provide suggestions on what to ask and look for during
those visits. The list provided to a customer will not be limited to
participating providers, and AdviNet will not recommend any specific
facility to the customer.
AdviNet will operate independently of Beverly, in a separate office
building, with a separate computer system. AdviNet's employees' compensation
will not depend in any way upon selection of Beverly facilities by AdviNet
customers.
Specific pricing information received by AdviNet from any provider
will not be made available to any other provider.
Under the Department's business review procedure, an organization may
submit a proposed action to the Antitrust Division and receive a statement
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 documents supporting the business
review will be added to the file.
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95-268
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