IMO settles action on alleged price-fixing

The High Court has received terms of settlement of an action by the Competition Authority against the Irish Medical Organisation (IMO) for allegedly fixing the fees GPs charged life assurance companies for medical reports.

No details of the settlement were disclosed in court yesterday when Mr Justice Liam McKechnie was asked to receive and file the settlement by Maurice Collins SC, for the IMO.

However, it is understood that, under the settlement, the IMO has undertaken not to issue communications to its members expressing a view on fees to be charged for services provided to life insurance companies by GPs.

The IMO has also undertaken not to either directly or indirectly discourage its members from individually negotiating with life insurance companies or to withhold services from life assurance companies. It is understood the IMO has also agreed to pay the Competition Authority's costs, which are understood to be in excess of €60,000.

The settlement was reached last month and, in an accompanying statement, the IMO said the settlement did not constitute an admission it had breached the Competition Act.

The case arose after the Competition Authority began an investigation in February 2005 on foot of a complaint received during a fees dispute between the IMO and life insurance companies.

The authority subsequently secured a District Court warrant on foot of which it searched the offices of the IMO at Fitzwilliam Place in Dublin in April 2005. More than 340 items were removed, including a computer hard drive. The following month the Competition Authority also searched the office of a GP.

The investigation centred on two allegations - that the IMO was involved in price fixing relating to medical reports to life assurance companies and that it had threatened to withdraw these services if the life assurance companies did not pay a proposed increase in fees.

The authority initiated proceedings against the IMO in the High Court in July 2006.