FOR IMMEDIATE RELEASE:
December 6, 2004
FOR INFORMATION CONTACT:
Kristin Miller 312/853-6528
Appellate Court Finds HealthLink “Administrative Fees” in Violation of Law
Chicago – A late November Illinois appellate court ruling means downstate Illinois physicians will no longer be forced to pay a separate administrative fee to a health plan “middleman,” the Illinois State Medical Society announced to its members today. In Vine Street Clinic et al v. HealthLink, the Fourth District Illinois Appellate Court overturned a lower court ruling, and rightfully found the administrative fees imposed on physicians by HealthLink to be a violation of the fee-splitting prohibition in the Medical Practice Act of 1987. It is unknown if HealthLink will be appealing this decision.
“Requiring physicians to remit to HealthLink a portion of their fees from each patient encounter is a clear violation of the law,” said ISMS President, Kenneth J. Printen M.D. “This flat fee is clearly fee-splitting in disguise, and as such, is illegal.
“Paying an extra administrative expense for medical services rendered simply adds another cost to an already financially-strapped health care system. These costs are ultimately borne by patients,” Dr. Printen noted. “The action of the court removed another unnecessary expenditure from the health system and represents a positive step for maintaining access to care in Illinois.”
Dr. Printen emphasized that “HealthLink already receives monies from payers and insurers which choose HealthLink as a vendor to amass and maintain health networks. Therefore, in our view, the added charge to physicians has always been unnecessary.
“It was a bad idea from the start, and we’re glad to see it go. ISMS was proud to support Vine Street Clinic and its physicians by filing an amicus curiae brief in the case.”
The Vine Street Clinic is located in Springfield, Illinois. HealthLink’s primary Illinois service area locations are central and southern Illinois, outside of the Chicagoland area.
www.isms.org
Dr. Printen is a board-certified general surgeon practicing in Evanston, IL.
The Illinois State Medical Society is a professional membership association representing 14,000 physicians practicing in all specialties statewide.
Twenty North Michigan Avenue, Suite 700 Chicago, Illinois 60602 Telephone: 312-782-1654 Toll Free: 800-782-ISMS Fax: 312-782-2028