PHYSICIAN UNIONIZATION

Introduction:

A sense of powerlessness and disenchantment is pervasive in medicine today. Many physicians seek and desire representation through collective action as a way of voicing their anger over the intrusive control exercised by their employers and/or the payers of their services. In particular, the focus is on managed care systems that continue to aggressively dictate payment and coverage terms in their contracts with physicians. At the core of the physician’s frustration is their loss of decision making powers and the lack of control over the quality of patient care and secondly their disadvantage in negotiating contractual terms for their services. The argument continues that it is difficult for them to serve their patients interests in an environment which is hostile to these interests. Increased patient loads; late payments; gag clauses; complicated referral processes; and staff shortages have been offered as a partial list of items contributing to sub optimal working conditions. Further, physicians express concern that the system lacks a meaningful avenue through which due process of their grievances can be heard.

Currently, about 55% of all physicians are private practitioners. Although all physicians including those who are salaried employees, have some degree of dissatisfaction with the current system, the loudest voice comes from the private practineers who must do direct business with the HMO’s inorder to have a viable medical practice. When an HMO presents a private practitioner with a contract including a fee schedule for service, the physician has little choice other then to sign the agreement. Not to sign means losing whatever percentage that particular HMO represented of their practice the previous year to a physician down the street. And unfortunately there is always one more physician down the street.

It is out of this enormous sense of frustration over the lose of patient management decisions and fair compensation for their service provided that the old concept of physician unionization has re-emerged. Physician unionization is seen by its supporters as a means of leveling the playing field with the HMO’s.

At the center of the discussion on physician unionization is the issue of collective bargaining and violation of antitrust law. The listed web sites and selected articles which are all accessible on the internet begin to explain the complexity of the issue and the obstacles which must be overcome in order for unionization to become a viable choice.

 WEB SITE RESOURCES

1.American Medical Association, www.ama-assn.org.

The AMA is the principal organization representing physicians needs in North America. Approximately one third of all physicians are members. There are two publications which are associated with the AMA: 1. American Medical News, a weekly newspaper which covers relevant current medical topics distributed to all AMA members. Several articles on unionization have appeared in this newspaper. 2. Journal of the American Medical Association. This medical journal published in association with the AMA has also included articles on the unionizationmovement. Articles about this topic can be accessed through this web address. Thisweb site also provides links to other web sites which contain information relevant to this topic. Several are organizations started by the AMA. Four stars

2.Physician’s News Digest, http://physiciansnews.com

This is a weekly publication which deals with medical issues relevant to physician’s practices. It actively publishes articles about the unionization movement and is affiliated with the AMA. Four stars 

3.Coudert Brothers Practice Group, http://www.coudert.com/

This is a law firm that has as one of its divisions a member who is active in the area of physician unionization. By accessing the law firm’sweb site, all relevant articles written by this member can be accessed in their entirety. These articles were found to be relevant, comprehensive, and well written. Use the search engine to find the articles. Four stars

4.American Academy of Family Physicians, http://home.aafp.org

This is the web site of a professional society representing family practice physicians. They publish a journal entitled “Family Practice Management”. They have several relevant and comprehensive articles which have appeared in their journal. Further, these articles can be accessed in their entirety from the web site. Four stars

5.Physicians for Responsible Negotiation (PRN), http://www.4prn.org

PRN was created by the AMA to “empower” physicians. The organization has bylaws which are accessible at the web site. It clearly defines what rights under the law physicians have in any conflict with an employer or payer. It also provides links to other physician unionization web sites. After exploring all the sites within the PRN site itself, it was found to be more smoke then substance, with very little contribution towards an understanding of the movement or their role in achieving any goal. One star

6.Union of American Physicians and Dentists, http://www.uapd.com

The UAPD was founded in 1972 as a union representing physicians and dentists. It represents approximately 5000 physicians and dentists. 55% of the members are employed by an organization, 45% are self-employed. There was very little useful information at this web site. Much of the information is dated and is heavily geared toward the legislative environment in California. There were no articles detailing the current state of the physician unionization movement. Overall the site was not a strong resource to gain an understanding of the concept and movement of physician unionization. One star

 Interesting Current Articles

1.Collective Negotiation and Physician Unions, By Michael L. Ile, JD, Nov. 3, 1989, JAMA, vol262.no.17,pg. 2444, http://www.ama-assn.org

Although this article is over ten years old, it masterfully defines why this problem has generated the current interest in physician unions. It further delineates the complexity of antitrust law which is the principal roadblock in forming a union and the penalties for violation of the antitrust law. It also makes the distinction between employed and self-employed physicians. Finally, it defines the AMA’s position at that time with regard to the union movement. Five stars

2.Physician’s Union: Handle with Care, By Elinor R. Hoffmann, Esq., March, 1998, Managed Care Interface, vol.11, no.3, p.81http://www.coudert.com/physcare

This is an article written by a lawyer, which in great detail traces the origins and the history of the Sherman Act (antitrust law), which was inacted in 1890. Over the last century there were many amendments to the original law to create a more fair and equitable piece of legislation. Antitrust, the ability of one group to “fix a price” is the central stumbling block to physicians unionizing. This article, through the siting of case law and the elaborating on the historical highlights makes a very confusing issue understandable to the lay reader. Five stars

3.Is there a Physician Union in Your Future? By Robert Carlson, Jan. 1999, Family Practice Management, http://home.aafp.org

This is a very comprehensive article which touches on many of the issues which are foremost in physician’s concerns about unionization. Points which were raised include why is this such an important issue now, why would established unions be interested in including physicians as partners, are doctors comfortable with being in a formal union, what is antitrust, and were does the AMA stand on this issue? All of these issues are tactfully and clearly addressed. Five stars.

4.A Union Answer, by Craig Havighurst, Jan. 11, 1999, American Medical News,

http://www.ama-assn.org

The article looks at several antidotal situations including the Medolia Healthcare 

System in Seattle, Washington and the Allegheny Health and Research Foundation in Pennsylvania where employed physicians have looked toward unionization to get a more equitable deal from their employers. They conclude, doctors are more inclined today to look toward unions, because no other avenue has provided a satisfactory answer to their problems. Three stars

5.IVE Bargaining Program, Nov. 1997, Physician News Digest,

http://physiciansnews.com

This article is a one on one interview between Nancy W. Dickey M.D, President of the AMA and the Physician News Digest. Dr. Dickey makes the case that collective bargaining is a more appealing alternative then unionization of physicians. In 1997, the AMA had no interest in becoming involved in the physician union movement because they did not see it as part of their mission to represent physicians in business negotiations. This article, in a round about way, attempts to stake a position that unionization is not an activity that the AMA is interested in becoming involved in. Since 1997, out of necessity, the AMA has slowly become more sensitive to the membership’s concerns that the AMA becomes more actively involved in the physician unionization movement. Two stars

 Conclusion

Physician unionization is a relevant topic to manage health care. Currently the movement has reached a legal dead end because of the Sherman Act.

There are two suggested paths to overcome what otherwise appears to be a legal impasse.

1.Doctors can go forward with unionization and confront the HMO’s collectively. This would force a public debate of the physician’s grievances with the HMO’s, with the hope of winning public support for their compromised position. If they were to lose in the public forum however, they will be in clear violation of the antitrust law and the consequences would be severe.

2.Petition congress for an amendment to the antitrust law. The literature is pessimistic about a favorable outcome. All corners of society are pleading for reductions in the cost of health care. Such favorable legislation would only fuel the fires of greater medical expenditures.

Ultimately, without a congressional amendment to the Sherman Act, any attempt by physicians to unionize for the purpose of collective bargaining is unlikely to succeed. Self-employed doctors in independent practice do not qualify for the labor exemption from the antitrust laws and do not qualify for protection of the National Labor Relations Act. They are classified as independent contractors, not employees. Therefore, they may not engage in collective bargaining with health plans.


 
 
Note: The information below may contain additional relevant materials and documents. Some of the information may be duplicate. The evaluations depend on both the student doing the review and the information contained at the time of the review. Sites are subject to change!