Arizona v. Maricopa County Medical Society

Arizona v. Maricopa County Medical Society is a landmark United States Supreme Court case decided on June 18, 1982. The case, officially cited as Arizona v. Maricopa County Medical Society, 457 U.S. 332 (1982), addressed the legality of a fixed-fee schedule for medical services set by the Maricopa County Medical Society in Arizona. This decision is significant in the realm of antitrust law and healthcare regulation, as it tackled the issue of price-fixing among competing physicians within a healthcare foundation.

Background

The Maricopa County Medical Society had established a maximum fee schedule under a plan known as the Foundation for Medical Care. Physicians who participated in the plan agreed not to charge more than the set fees for their services. The State of Arizona, arguing that this practice constituted illegal price-fixing, brought a lawsuit against the Medical Society under the Sherman Antitrust Act.

Supreme Court Decision

The Supreme Court, in a 4-3 decision, ruled that the fixed-fee schedule created by the Maricopa County Medical Society was in violation of the Sherman Antitrust Act. Justice Sandra Day O'Connor, writing for the majority, held that the practice of setting maximum fees restricted competition among physicians and was therefore illegal. The Court rejected the argument that the fee schedule was justifiable as a means of controlling healthcare costs, emphasizing that antitrust laws do not permit such agreements among competitors.

Implications

The ruling in Arizona v. Maricopa County Medical Society has had profound implications for the healthcare industry and antitrust law. It underscored the principle that healthcare providers, like entities in other sectors, are subject to antitrust regulations. This case has been cited in subsequent legal challenges involving price-fixing and anticompetitive practices in the healthcare sector.

See Also

• Sherman Antitrust Act
• Healthcare in the United States
• Antitrust law
• United States Supreme Court cases