Illinois State Medical Society

FTC slams IL physicians' retail clinic rules

Anne Zieger — Mon, 16 Jun 2008 09:13:53 -0400

In a move that could set back national physician efforts to control the evolution of retail clinics, the Federal Trade Commission has labeled retail clinic regs backed by Illinois doctors as anti-competitive and bad for consumers. The FTC letter criticizes a bill pending in the Illinois state legislature that would require permits for the facilities, limit their capacity for advertising and mandate greater physician involvement in their operations. It issued the critique at the request of a state legislator who asked for the agency's input on the pending bill.

The FTC, in short, said it didn't like what it saw. "Because several of the bill's requirements would pertain only to retail clinics--and not other health-care facilities offering the same services or staffing--those requirements could put retail clinics at a competitive disadvantage without offering countervailing consumer benefits," the agency said.

Even this critique may not stop the Illinois State Medical Society, which has been a vocal opponent of retail clinic models. However, the FTC's input has shaped how regulations have evolved in other states, such as Massachusetts, where state health officials dropped proposals to regulate retail clinic ads on FTC advice.

To learn more about the FTC's position:
- read this Chicago Tribune piece

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FTC comes down on IL bill restricting retail clinics

Wed, 04 Jun 2008 06:59:58 -0400

The Federal Trade Commission has let it be known that it isn't thrilled with pending legislation that could place limits on the state's growing retail clinic industry. The agency found that the bill, which is backed by the Illinois State Medical Society, could "excessively restrict retail clinics to the detriment of Illinois healthcare consumers." The 12-page analysis, which was requested by state Rep. Elaine Nekritz, found a number of problems with the bill, including a definition it said could be interpreted to exempt retail clinics owned by hospitals or physicians from the rules.

It also objected to several other provisions, including proposed rules limiting medical directors to overseeing no more than two clinics; prohibiting payers from negotiating lower co-pays and deductibles for retail clinic services; barring retail clinics from opening in establishments that sell alcohol or tobacco; and requiring that retail clinics have a designated receptions and waiting area.

The controversy over this bill is not the first conflict over retail clinic regulations--a few states, including Massachusetts, have already seen heated battles over this issue--and it probably won't be the last. For example, the AMA continues to challenge the safety of retail clinic services, as well as their potential for posing a conflict of interest by being housed where prescription drugs are sold. Other critics (such as Boston's Mayor Thomas Menino) have proposed rules barring clinics from operating where tobacco is sold, which de facto prevents the clinics from operating in drugstores that rely on tobacco income.

To learn more about the FTC analysis:
- read this Modern Healthcare piece (reg. req.)

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IL bill could choke retail clinic growth

Tue, 11 Mar 2008 07:59:56 -0400

Keeping up the battle between traditional medical practices and retail clinics, the Illinois State Medical Society is trying to help push through a measure that would severely cut down on the growth of such clinics in the state. The bill, the "Retail Health Care Facility Permit Act," is largely couched in terms that propose to protect the patient, including requirements the clinics communicate extensively with established primary care physicians, limit their scope of services and retain a medical director on staff. Despite these comparatively modest requirements, an earlier version didn't pass during the 2007 legislative session.

This year, ISMS and its allies have raised the stakes. The new version of the bill slips in a provision under which retail clinics wouldn't be allowed to exist in stores that sell tobacco or alcohol products, drastically cutting down on the number of venues where the clinics can operate. This tactic, which also was proposed by Boston Mayor Thomas Menino in an effort to ban the clinics from the city, makes the real intentions of the Illinois State Medical Society fairly clear. The question, now, is whether legislators are as bent as they are on squeezing retail clinics out of the state.

To get background on this issue:
- read this medical society press release
- read this AMNews article (sub. req.)

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