Dental Consultant Salary Survey

UNlTED STATES OF AMERICA
FEDERAL TRADE COMMISSION
WASHINGTON, D.C.
May 3 0 , 	8991
Samuel Ds Dednam, 	D.M.D,
1827 South 39th Street
St. Lnufe, 	Missouri 	63118
Dear DP* 	Bednam:
This letter responds to your rewest 	for 	an a d v i s o q opinion
concerning your desire Lo conduct of aumey of 	s a l a q ranges 	f o r
certified dental consultante, 	YQUZ letter hae been referred to
h	me for respanee because I direct the office w i t 	i n the Bureau of
Competition that is responsible for a n t i t m a t 	law enforcement in
health eare markets,
According to your letter, you would like to conduct a s u n e y
of 	s a l a q Panges for seve~alfunctions 	perhomed by dental
consultants employed by or working under contract with insurance
carriers, hospitals, and health centers. 	You have retquested an
opinion on the conduct of 	the survey and 	the sharing of collected
infomatian with dental consultanls, professional organizations,
and 	insure~s.
YOUP letter does not pxovide us with enough infamation
about the purpose of the survey and the likely uses of 	its
results, the Lorn in which 	the infomation will be provided to
den&af 	consultants, and the stmeture of the d e n t a l consultant
m a a r l r e t 	to allow us to render a definite opinion on t h e eonduet
outlined in your letter* 	However, P 	can explain briefly the
Legal principles applicable to exchanges of p~iceinfomation
mong e~rnpetilsrs. %n this context, 	the tern 	""price8@	would
encompass the salaries or 	fees paid 	to providers by 	purchasers of
health eare semiceS,
As a general rule, exchanges of price information are least
likely ts raise a n t i t m s t problems i S 	they involve historical
i n f o m a t i a n , 	if the results are reprted 	in aggregate gopar 	and
caneern ranges oL prices, 	and if the markets involved in the
infomalion exchange contain a fairly large n
eompatilors, 	Antitmet problems are more 	likely Ls arise if the
infomation eaneerns current or future prices, if the infomation
disclosed pertains to individual transactions or to average
prices 	OP costsI or if t h e markets 	involved contain only a 	few
esmpelitors, 	Serious a n t i t m a t 	issues certainly arise if the
@ exchange 	is used 	to 	facilitate a price-fixing 	agreement among

Samuel D, mdnam
0 csmpeefeors or is used ts coerce, 	or threaten ta coerce, 	buyers
concerning the prices 	they pay 	or other terns 	of 	trade, 	1 am
enclosing for your information copies 	o f 	a speech 	T delivered
recently discussing exchanges 	of prices 	i n f o m a t i o n 	and of three
staff advisory opinions on that subject,
I hope this i n f o m a t i o n 	answers your questions. 	If you ndkd
more 	i n l o m a t i o n , 	please contact 	Judy Moreland, 	a senior 	a t t o r n e y
i n 	this office, 	Her telephone n 	er is (202) 3 2 6 - 2 7 9 6 .
B	' 	I
Mark J, Horosekak
Assistant Director

May 13, 1891
Office of Secretary
Federal Trade Gomission
s i x t h and Pennsylvania
WaobinGon, 	B,C, 	20580
1 p r o p e e to sand out a suzvey to Dental ~onrt;ultant&	tkoughout Osbr United
States concerning e a l a q tangee for several duty functions peovfdd to Inrrurmce
carriers,
My eurtrey would aek peetiona regarding full-the m d pa&-tbm 	q l o ~ e n o ~ :
salary, fees charged fat testifying In coug+: cases, and stae%fng e a l a q emges
for doctors aployed or contracted by insurance cwriere, hsrilpital~, PrnB h e a l t h
centere,
I need an Advisory winion in writing regmding a r ~ g pzopecad sunvey m d how
% may 	share the collected infomation 	w i t h professional Dental ConeuPtmte,
n a t f o n a l professional organization8 and/or carriers,
Your prompt attention is greatly appreciated,
Sincerely yoursar,