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Portland Area Physicians Association Takes Formal Stand on Providence Health Systems' Decision to Exclude EPIC Imaging and Body Imaging Radiology from Providence-Controlled Insurance Plans

Portland, OR, April 25, 2005--The Board of Directors of Pacific IPA, Inc., an independent physicians association, voted unanimously to inform Providence Health System of its "concern regarding the decision to exclude Epic Imaging and Body Imaging from all Providence Health System panels." Pacific IPA, which represents 82 primary care physicians and 20 specialty physicians from Northwest Primary Care Group, Oregon Primary Care Physicians and The Portland Clinic, mailed a letter to Phil Jackson, Regional Director for Network Development for Providence on April 21st stating, "We believe it is in the best interest of patients and referring physicians to have choice in regard to radiology services."

Providence recently announced it would terminate its contracts with the two facilities and remove them from its preferred provider panels. Both EPIC Imaging and Body Imaging have served on those panels for decades. The far-reaching decision would deny access to the state-of-the-art facilities to a significant number of Oregonians and their doctors. This is because Providence currently rents its provider panels to over 100 independent (non-Providence) insurance companies including such large players as Aetna and Cigna.

The termination date originally scheduled for May 1 was delayed through June 30 after EPIC Imaging and Body Imaging Radiology requested an injunction in Federal court and filed a lawsuit under the nation's antitrust laws designed to protect free and fair competition. A hearing which will decide whether or not to grant an injunction to block the imaging centers' termination while the case is being considered is currently scheduled for June 20, 2005 before Judge Garr M. King in Federal District court.

Pacific IPA affirmed that, "Both of these radiology groups have provided excellent care to our patients" and requested that "you [Providence] re-evaluate your position on this issue." The letter was signed by Dr. Jeffrey Cleven, the Pacific IPA Chairman and IPA Directors Dr. Timothy Janzen and Dr. Alfred Mick.

At the heart of issue is choice. "We believe strongly in the right of physicians to choose for themselves what diagnostic tools are in the best medical interest of their patients," said Dr. Warnock and Dr. Meunier. "Clearly the IPA agrees. We find it interesting that Providence released a statement to the press on April 14th stating, 'Providence Health Plans continues to believe it has the same right as any other business to choose the firms it contracts with,' yet they seem to have no problem denying others choice."

"We are very grateful for Pacific IPA's support as well as the many other phone calls and letters of support sent to our facilities, Mr. Phil Jackson and the editors of local papers," said Drs. Meunier and Warnock. "We continue to hope they will have an impact. The market consolidation tactics being pursued by Providence will only serve to decrease innovation, service and competitive pricing over the long term."

Providence Antitrust Action page