arizona maricopa county medical society argued november decided june respondent foundations medical care organized respondent maricopa county medical society another medical society promote medicine provide community competitive alternative existing health insurance plans foundations agreement member doctors established maximum fees doctors may claim full payment health services provided policyholders specified insurance plans petitioner state arizona filed complaint respondents federal district alleging engaged illegal conspiracy violation sherman act district denied state motion partial summary judgment certified interlocutory appeal question whether agreements illegal per se sherman act appeals affirmed denial motion partial summary judgment held certified question answered without evaluating purpose effect agreements full trial held agreements agreements per se unlawful sherman act pp agreements escape condemnation per se rule agreements horizontal fix maximum prices horizontal agreements fix maximum prices legal even economic footing agreements fix minimum uniform prices joseph seagram sons albrecht herald per se rule violated price restraint tends provide economic rewards practitioners regardless skill experience training willingness employ innovative difficult procedures individual cases restraint may also discourage entry market may deter experimentation new developments individual entrepreneurs fact doctors rather nonprofessionals parties agreements preclude application per se rule respondents claim quality professional services members provide enhanced price restraint goldfarb virginia state bar national society professional engineers distinguished claim price restraint make easier customers pay distinguish medical profession provider goods services pp judiciary little antitrust experience health care industry insufficient reason applying per se rule sherman act far agreements concerned establishes one uniform rule applicable industries alike oil pp per se rule rendered inapplicable case alleged reason agreements issue procompetitive justification anticompetitive potential agreements justifies facial invalidation even procompetitive justifications offered even respondents given every benefit doubt record case inconsistent presumption respondents agreements significantly enhance competition said doctors fix maximum prices doctors may able efficiently insurers reason believe savings might accrue arrangement sufficiently great affect competitiveness kinds insurance plans pp respondents schedules involve literal sense broadcast music columbia broadcasting system distinguished agreements among independent competing entrepreneurs fit squarely horizontal mold pp stevens delivered opinion brennan white marshall joined powell filed dissenting opinion burger rehnquist joined post blackmun took part consideration decision case kenneth reed special assistant attorney general arizona argued cause petitioner briefs robert corbin attorney general charles eger assistant attorney general alison swan patricia metzger philip berelson argued cause respondents brief robert lesher daniel mcauliffe deputy solicitor general shapiro argued cause amicus curiae urging reversal brief solicitor general mccree assistant attorney general baxter deputy solicitor general wallace barry grossman robert nicholson nancy garrison briefs amici curiae urging reversal filed state alabama et al charles graddick attorney general alabama susan beth farmer sarah spratling james drury flowers assistant attorneys general wilson condon attorney general alaska louise assistant attorney general steve clark attorney general arkansas david williams deputy attorney general macfarlane attorney general colorado lawrence theis first assistant attorney general carl ajello attorney general connecticut robert langer john lacey john looney steven rutstein assistant attorneys general richard gebelein attorney general delaware robert lobue deputy attorney general jim smith attorney general florida bill bryant assistant attorney general tany hong attorney general hawaii sonia faust deputy attorney general tyrone fahner attorney general illinois thomas genovese assistant attorney general linley pearson attorney general indiana frank baldwin assistant attorney general thomas miller attorney general iowa john perkins assistant attorney general robert stephan attorney general kansas carl anderson assistant attorney general steven beshear attorney general kentucky james ringo assistant attorney general william guste attorney general louisiana john flowers assistant attorney general james tierney attorney general maine stephen sachs attorney general maryland charles monk ii assistant attorney general frank kelley attorney general michigan edwin bladen assistant attorney general warren spannaus attorney general minnesota stephen kilgriff special assistant attorney general bill allain attorney general mississippi robert sanders special assistant attorney general john ashcroft attorney general missouri william newcomb assistant attorney general michael greely attorney general montana jerome cate assistant attorney general paul douglas attorney general nebraska dale comer assistant attorney general gregory smith attorney general new hampshire james zazzali attorney general new jersey laurel price deputy attorney general jeff bingaman attorney general new mexico james wechsler richard levin assistant attorneys general robert abrams attorney general new york lloyd constantine assistant attorney general rufus edmisten attorney general north carolina cole special deputy attorney general darrell hancock associate attorney general robert wefald attorney general north dakota gary lee assistant attorney general jan eric cartwright attorney general oklahoma gary gardenshire assistant attorney general dennis roberts ii attorney general rhode island patrick quinlan special assistant attorney general daniel mcleod attorney general south carolina john cox assistant attorney general mark meierhenry attorney general south dakota james mcmahon assistant attorney general william leech attorney general tennessee william haynes deputy attorney general mark white attorney general texas linda aaker assistant attorney general david wilkinson attorney general utah peter collins assistant attorney general john easton attorney general vermont jay ashman assistant attorney general kenneth eikenberry attorney general washington john ellis assistant attorney general chauncey browning attorney general west virginia charles brown deputy attorney general bronson la follette attorney general wisconsin michael zaleski assistant attorney general john troughton attorney general wyoming gay venderpoel assistant attorney general state ohio william brown attorney general charles weller doreen johnson eugene mcshane assistant attorneys general chalmette general hospital et al john stassi ii hospital building john train iii john jordan briefs amici curiae urging affirmance filed william kopit robert moses american association foundations medical care richard epstein jay hedgepeth american hospital association laurence popofsky peter sloss california dental service alfred miller filed brief american association retired persons et al amici curiae justice stevens delivered opinion question presented whether sherman act stat amended violated agreements among competing physicians setting majority vote maximum fees may claim full payment health services provided policyholders specified insurance plans appeals ninth circuit held question answered without evaluating actual purpose effect agreements full trial undisputed facts disclose violation statute granted certiorari reverse october state arizona filed civil complaint two county medical societies two foundations medical care medical societies organized complaint alleged defendants engaged illegal conspiracies defendants filed answers one medical societies dismissed consent parties conducted limited amount pretrial discovery state moved partial summary judgment issue liability district denied motion entered order pursuant certifying interlocutory appeal question whether fmc membership agreements contain promise abide maximum fee schedules illegal per se section sherman act appeals divided vote affirmed district order refusing enter partial summary judgment three judges panel different view case judge sneed persuaded challenged practice per se violation judge kennedy although concurring cautioned found reimbursement schedules per se proper examination practices rule reason trial reveal proscribed adverse effect competition foreclosed later date evidence concluding schedules constitute per se violations ibid judge larson dissented expressing view per se rule apply alternatively analysis condemn arrangement even per se approach warranted ultimate question presented certiorari petition whether partial summary judgment entered district must assume respondents version disputed issue fact correct therefore first review relevant undisputed facts identify factual basis respondents contention agreements fee schedules unlawful ii maricopa foundation medical care nonprofit arizona corporation composed licensed doctors medicine osteopathy podiatry engaged private practice approximately doctors representing practitioners maricopa county members maricopa foundation organized purpose promoting medicine provide community competitive alternative existing health insurance plans foundation performs three primary activities establishes schedule maximum fees participating doctors agree accept payment full services performed patients insured plans approved foundation reviews medical necessity appropriateness treatment provided members insured persons authorized draw checks insurance company accounts pay doctors services performed covered patients performing functions foundation considered insurance administrator director arizona department insurance participating doctors however financial interest operation foundation pima foundation medical care includes member doctors performs similar functions purposes litigation parties seem regard activities two foundations essentially challenge made peer review claim administration functions foundations allege two activities make necessary engage practice establishing schedules time lawsuit filed foundation made use relative values conversion factors compiling fee schedule conversion factor dollar amount used determine fees particular medical specialty thus example conversion factors medicine laboratory respectively relative value schedule provides numerical weight different medical service thus office consultation lesser value home visit relative value multiplied conversion factor determine maximum fee fee schedule revised periodically foundation board trustees solicit advice various medical societies need change either relative values conversion factors respective specialties board formulate new fee schedule submit vote entire membership fee schedules limit amount member doctors may recover services performed patients insured plans approved foundations obtain approval insurers including employers well insurance companies agree pay doctors charges scheduled amounts exchange doctors agree accept amounts payment full services doctors free charge higher fees uninsured patients also may charge patient less scheduled maxima patient insured plan guaranteed complete coverage full amount medical bills treated foundation member free go nonmember physician still covered charges exceed schedule must pay excess nonmember physician may charge impact foundation fee schedules medical fees insurance premiums matter dispute state arizona contends periodic upward revisions schedules effect stabilizing enhancing level actual charges physicians increasing level fees turn increases insurance premiums foundations hand argue schedules impose meaningful limit physicians charges advance agreement doctors accept maxima enables insurance carriers limit calculate efficiently risks underwrite therefore serves effective mechanism saved patients insurers millions dollars although attorneys general different well solicitor general certain organizations representing consumers medical services filed amicus curiae briefs supporting state arizona position merits must assume respondents view genuine issues fact correct assumption presents answer question whether sherman act prohibits competing doctors adopting revising agreeing use schedule implementation insurance plans iii respondents recognize decisions establish agreements unlawful face argue per se rule govern case agreements issue horizontal fix maximum prices among members profession industry judiciary little antitrust experience alleged procompetitive justifications examine arguments pause consider history meaning per se rule agreements section sherman act literally prohibits every agreement restraint trade joint traffic recognized congress intended literal interpretation word every since standard oil new jersey analyzed restraints rule reason name suggests rule reason requires factfinder decide whether circumstances case restrictive practice imposes unreasonable restraint competition elaborate inquiry reasonableness challenged business practice entails significant costs litigation effect purpose practice often extensive complex northern pacific judges often lack expert understanding industrial market structures behavior determine confidence practice effect competition topco associates result process given case may provide little certainty guidance legality practice another context northern pacific supra costs judging business practices rule reason however reduced recognition per se rules experience particular kind restraint enables predict confidence rule reason condemn applied conclusive presumption restraint unreasonable every rule general application match presumed actual imperfect sake business certainty litigation efficiency tolerated invalidation agreements fullblown inquiry might proved reasonable thus standard oil recognized inquiry rule reason ended agreement proved conclusive presumption brought agreements within statute able state often decided always assumed uniform controlling substantial manner trade business interstate commerce prohibited sherman law trenton potteries aim result every agreement effective elimination one form competition power fix prices whether reasonably exercised involves power control market fix arbitrary unreasonable prices reasonable price fixed today may economic business changes become unreasonable price tomorrow established may maintained unchanged absence competition secured agreement price reasonable fixed agreements create potential power may well held unreasonable unlawful restraints without necessity minute inquiry whether particular price reasonable unreasonable fixed without placing government enforcing sherman law burden ascertaining day day whether become unreasonable mere variation economic conditions combination tampers price structures engaged unlawful activity even though members group position control market extent raised lowered stabilized prices directly interfering free play market forces act places schemes beyond pale protects vital part economy degree interference congress left us determination whether particular schemes wise unwise healthy destructive permitted cry ruinous competition competitive evils defense conspiracies allowed genuine fancied competitive abuses legal justification schemes good intentions members combination shift made must done congress certainly congress left us choice act created authorized creation special exception favor oil industry whatever may peculiar problems characteristics sherman act far agreements concerned establishes one uniform rule applicable industries alike agreements less fix minimum prices cripple freedom traders thereby restrain ability sell accordance judgment reaffirm said oil sherman act combination formed purpose effect raising depressing fixing pegging stabilizing price commodity interstate foreign commerce illegal per se maximum minimum price fixing may different consequences many situations schemes fix maximum prices substituting perhaps erroneous judgment seller forces competitive market may severely intrude upon ability buyers compete survive market competition even single product cast single mold maximum prices may fixed low dealer furnish services essential value goods consumer furnish services conveniences consumers desire willing pay maximum price fixing may channel distribution large specifically advantaged dealers otherwise subject significant nonprice competition moreover actual price charged maximum price scheme nearly always fixed maximum price increasingly likely maximum price approaches actual cost dealer scheme tends acquire attributes arrangement fixing minimum prices omitted decisions foreclose argument agreements issue escape per se condemnation horizontal fix maximum prices albrecht place horizontal agreements fix maximum prices legal even economic footing agreements fix minimum uniform prices per se rule grounded faith price competition market force policy low selling prices price eliminating competition rahl price competition price fixing rule preface perspective nw rev case rule violated price restraint tends provide economic rewards practitioners regardless skill experience training willingness employ innovative difficult procedures individual cases restraint also may discourage entry market may deter experimentation new developments individual entrepreneurs may masquerade agreement fix uniform prices may future take character fact doctors rather nonprofessionals parties agreements support respondents position goldfarb virginia state bar stated public service aspect features professions may require particular practice properly viewed violation sherman act another context treated differently see national society professional engineers agreements case however premised public service ethical norms respondents argue defendants goldfarb professional engineers quality professional service members provide enhanced price restraint respondents claim relief per se rule simply doctors agreement charge certain insureds fixed price facilitates successful marketing attractive insurance plan claim price restraint make easier customers pay distinguish medical profession provider goods services equally unpersuaded argument apply per se rule case judiciary little antitrust experience health care industry argument quite obviously inconsistent unequivocal terms stated hatever may peculiar problems characteristics sherman act far agreements concerned establishes one uniform rule applicable industries alike also stated elimination competitive evils industry legal justification agreements yet appeals refused apply per se rule case part health care industry far removed competitive model consistent prediction result reasoning adoption appeals legal standard based reasonableness fixed prices inquiry often condemned finally argument per se rule must rejustified every industry subject significant antitrust litigation ignores rationale per se rules part avoid necessity incredibly complicated prolonged economic investigation entire history industry involved well related industries effort determine large whether particular restraint unreasonable inquiry often wholly fruitless undertaken northern pacific respondents principal argument per se rule inapplicable agreements alleged procompetitive justifications argument indicates misunderstanding per se concept anticompetitive potential inherent agreements justifies facial invalidation even procompetitive justifications offered claims enhanced competition unlikely prove significant particular case adhere rule law justified general application even respondents given every benefit doubt limited record case inconsistent presumption respondents agreements significantly enhance competition respondents contend fee schedules procompetitive make possible provide consumers health care uniquely desirable form insurance coverage otherwise exist features insurance plans stress choice doctors complete insurance coverage lower premiums first two characteristics however hardly unique plans since doctors relevant market members either foundation guarantee complete coverage applies insured chooses physician elects go nonfoundation doctor may required pay portion doctor fee fair presume however least doctors markets charge usual customary reasonable fee typical insurers willing reimburse full thus maricopa pima counties well parts country insured asks doctor insurance coverage complete presumably cases doctor say yes cases say true binding assurance complete insurance coverage well respondents potential lower insurance premiums obtained insurer doctor agree advance maximum fee doctor accept full payment particular service even fee schedule therefore desirable necessary doctors price fixing record indicates arizona comprehensive program foster children administered maricopa foundation pursuant contract schedule prescribed state agency rather doctors program blue shield plan challenged group life health insurance royal drug indicate insurers capable fixing maximum reimbursable prices also obtaining binding agreements providers guaranteeing insured full reimbursement participating provider fee light examples surprising nothing record even arguably supports conclusion type insurance program function fee schedules set different way said doctors fix maximum prices doctors may able efficiently insurers validity assumption far obvious event reason believe savings might accrue arrangement sufficiently great affect competitiveness kinds insurance plans entirely possible potential actual power foundations dictate terms insurance plans may offset theoretical efficiencies upon respondents defense ultimately rests adherence per se rule grounded economic prediction judicial convenience business certainty also recognition respective roles judiciary congress regulating economy topco associates given generality enforcement sherman act required provide much substantive content articulating rules law clarity adhering rules justified general application however enhance legislative prerogative amend law respondents arguments application per se rule case therefore better directed legislature congress may consider exception free read statute iv declined respondents invitation cut back per se rule price fixing left respondents argument fee schedules involve price fixing literal sense argument respondents rely upon broadcast music columbia broadcasting system broadcast music confronted antitrust challenge marketing right use copyrighted compositions derived entire membership american society composers authors publishers ascap blanket license entirely different product one composer able sell although little competition among individual composers separate compositions arrangement place restraint right individual copyright owner sell compositions separately buyer price necessary consequence creation blanket license price established held delegation composers ascap power fix price blanket license species agreements categorically forbidden sherman act record disclosed price fixing literal sense case fundamentally different foundations composed individual practitioners compete one another patients neither foundations doctors sell insurance derive profits sale health insurance policies members foundations sell medical services combination form foundation permit sell different product combination merely permitted sell services certain customers fixed prices arguably affect prevailing market price medical care foundations analogous partnerships joint arrangements persons otherwise competitors pool capital share risks loss well opportunities profit joint ventures partnership regarded single firm competing sellers market agreement attack agreement among hundreds competing doctors concerning price offer services substantial number consumers true surgeons anesthesiologists psychiatrists doctors sell package three kinds services clinic offered complete medical coverage flat fee cooperating doctors type partnership arrangement agreement among doctors perfectly proper fee agreements disclosed record case among independent competing entrepreneurs fit squarely horizontal mold judgment appeals reversed ordered footnotes district offered three reasons decision first citing continental gte sylvania stated recent antitrust trend appears emerging rule reason preferred method determining whether particular practice violation antitrust law app pet cert second two cases invalidating maximum joseph seagram sons albrecht herald need read establishing per se rule third profession involved approach plaintiff motion partial summary judgment issue liability granted insufficient evidence purpose effect allegedly unlawful practices power defendants district also denied defendants motion dismiss based ground engaged business insurance within meaning act et seq see app pet cert defendants appeal portion district order quoted language appeals phrasing question district entered order june providing relevant part plaintiff motion partial summary judgment issue liability denied leave file similar motion based additional evidence appropriate app pet cert order entered june amended addition following determination rule reason approach used analyzing challenged conduct instant case determine whether violation section sherman act occurred involves question law substantial ground difference opinion immediate appeal order denying plaintiff motion partial summary judgment issue liability may materially advance ultimate determination litigation therefore foregoing order determination certified interlocutory appeal pursuant judge sneed explained reluctance apply per se rule substantially follows record indicate actual purpose arrangements effect competition health care industry clear whether assumptions made typical price restraints carried industry recently applied antitrust laws professions moreover already significant obstacles pure competition industry must compare prices obtain arrangements otherwise prevail rather prevail ideal competitive conditions furthermore ninth circuit applied joseph seagram sons albrecht herald horizontal agreements establish maximum prices economic assumptions underlying rule maximum price fixing sound judge kennedy concurring opinion concluded follows appear controlling definitive analysis market impact caused arrangements scrutiny case trial may reveal arrangements least essentials peculiar medical industry condemned judge larson stated part defendants formulated dispersed relative value guides conversion factor lists together used set upper limit fees received payors clear activities constituted maximum competitors disregarding special industry facts conduct per se illegal precedent alone mandate application per se standard find nothing nature either medical profession health care industry warrant exemption per se rules citations omitted health insurance plans type typical insurance plan insurer agrees insured reimburse insured usual customary reasonable medical charges insurer insured extent excess charges bears economic risk insured require medical treatment alternative type insurance plan illustrated health maintenance organizations authorized health maintenance organization act et seq form prepaid health plan consumer pays fixed periodic fee functionally integrated group doctors exchange group agreement provide medical treatment subscriber might need economic risk thus borne doctors record contains divergent figures percentage pima county doctors belong foundation publication foundation reported affidavit executive director foundation reported district appeals rendered judgment foundations apparently discontinued use relative values conversion factors formulating fee schedules moreover maricopa foundation year amended bylaws provide fee schedule adopted majority vote board trustees vote members challenge foundation activities described text however mooted changes see grant parties disagree whether increases fee schedules cause result increases prevailing rate medical services relevant markets appears agreement however physicians maricopa county bill maximum reimbursement levels set maricopa foundation seven different insurance companies underwrite health insurance plans approved maricopa foundation three companies underwrite plans approved pima foundation record contains firm data portion health care market covered plans state relies upon analysis indicating insurance plans endorsed maricopa foundation prepaid health care market respondents contest accuracy analysis every contract combination form trust otherwise conspiracy restraint trade commerce among several foreign nations declared illegal justice brandeis provided classic statement rule reason chicago bd trade true test legality whether restraint imposed merely regulates perhaps thereby promotes competition whether may suppress even destroy competition determine question must ordinarily consider facts peculiar business restraint applied condition restraint imposed nature restraint effect actual probable history restraint evil believed exist reason adopting particular remedy purpose end sought attained relevant facts good intention save otherwise objectionable regulation reverse knowledge intent may help interpret facts predict consequences thoughtful brief discussion costs benefits versus per se rule analysis agreements see scherer industrial market structure economic performance professor scherer opinion shared majority american economists concerned antitrust policy present legal framework costs implementing rule reason exceed benefits derived considering restrictive agreement merits prohibiting appear unreasonable among practices courts heretofore deemed unlawful price fixing division markets group boycotts tying arrangements northern pacific citations omitted see columbia steel thus applying per se rule invalidate restrictive practice topco associates stated hether decide case way rule reason used district irrelevant issue us made point continental gte sylvania per se rules thus require make broad generalizations social utility particular commercial practices probability anticompetitive consequences result practice severity consequences must balanced procompetitive consequences cases fit generalization may arise per se rule reflects judgment cases sufficiently common important justify time expense necessary identify albrecht herald harlan dissenting true albrecht agreement involved vertical arrangement maximum resale prices fixed case also involved agreement among competitors impose resale price restraint event horizontal restraints generally less defensible vertical restraints see continental gte sylvania easterbrook maximum price fixing chi rev argument confused established position new per se rule justified judiciary obtains considerable experience particular type restraint challenged see white motor unwillingness examine economic justification particular application per se rule price fixing inconsistent reexamination general validity per se rule rejected continental gte sylvania supra health care industry moreover presents particularly difficult area first step understanding recognize access medical profession time consuming expensive applicant society generally also numerous government subventions costs medical care created demand supply function medical services artificially high present supply demand functions medical services way approximate exist purely private competitive order accurate description functions moreover available thus lack baselines measured distance present supply demand functions exist ideal competitive conditions perforce must take industry exists absent challenged feature baseline measuring anticompetitive impact relevant inquiry becomes whether fees paid doctors system less payable fmc maximum fee agreement put differently confronted industry widely deviant reasonably free competitive model agriculture proper inquiry whether practice enhances prices charged services simplified economic terms issue whether maximum fee arrangement better permits attainment monopolist goal matching marginal cost marginal revenue fact obstructs end ibid first case arising sherman act required pass sufficiency defendants plea established rates actually beneficial consumers assuming factual validity plea rejected defense matter law freight national society professional engineers referred judge taft classic rejection argument competitors may lawfully agree sell goods price long price reasonable see addyston pipe steel aff latest case reiterated point excuse prices fixed reasonable catalano target sales whatever economic justification particular agreements may thought law permit inquiry reasonableness banned actual potential threat central nervous system economy oil according respondents figures presumption well founded see brief respondents perceive respondents claim procompetitive justification fee schedules rest premise fee schedules actually reduce medical fees accordingly reduce insurance premiums thereby enhancing competition health insurance industry argument merely restate position fixed prices reasonable lower free competition yield arguable however existence fee schedule whether fixed doctors insurers makes easier extent less expensive insurers calculate risks underwrite arrive appropriate reimbursement insured claims according federal trade commission staff report blue shield plans determined advance much pay particular procedures prepared fee schedules reflecting determinations fee schedules still used approximately percent blue shield contracts bureau competition federal trade commission medical participation control blue shield certain medical prepayment plans suggest blue shield plans actually controlled doctors indeed report discusses length belief given rise considerable antitrust litigation see also kass pautler bureau economics federal trade commission staff report physician control blue shield plans case present question whether insurer may consistent sherman act fix fee schedule enter bilateral contracts individual doctors question reached group life health insurance royal drug see amicus curiae brief expressed opinion arrangement legal unless plaintiffs establish conspiracy among providers work brief amicus curiae pp point simply record provides factual basis respondents claim doctors must fix fee schedule program foundation performs peer review function well administrative function paying doctors claims order create insurance plan doctor agree accept full payment fee prescribed fixed schedule someone must canvass doctors determine maximum prices high enough attract sufficient numbers individual doctors sign low enough make insurance plan competitive case canvassing function performed foundation foundation deals insurer seem insurer simply bypass foundation performing canvassing function dealing doctors foundation plan doctor must look schedule fixed competitors vote approval plan plan approved majority vote must continue revoke foundation membership similar extent protracted process occur insurer offered schedule doctor case appears fees set group substantial power market medical services competition among insurance companies sale medical insurance circumstances insurance companies likely significantly greater bargaining power monopoly doctors individual consumers medical services congress course make per se rules inapplicable cases leave courts free ramble wilds economic theory order maintain flexible approach topco associates indeed exempted certain industries full reach sherman act see act agricultural cooperatives act insurance act rail motor carrier bureaus newspaper joint operating agreements thus extent blanket license different product ascap really joint sales agency offering individual goods many sellers separate seller offering blanket license individual compositions raw material omitted fee set competition among individual copyright owners fee use compositions covered license blanket license wholly equated simple horizontal arrangement among competitors ascap set price blanket license license quite different anything individual owner issue individual composers authors neither agreed sell individually market use blanket license mask price fixing markets omitted may true becoming member foundation individual practitioner obtains competitive advantage market medical services unilaterally obtain competitive advantage ability attract customers people value guarantee full health coverage choice doctors indicated setting price doctors necessary consequence arrangement insurer doctor agrees charge certain insured customers fixed price justice powell chief justice justice rehnquist join dissenting medical care plan condemned today comparatively new method providing insured medical services predetermined maximum costs involves coercion medical insurance companies physicians patients alike free participate choose face plan seems public interest state arizona challenged plan per se antitrust theory district denied state summary judgment motion novelty issue certified question per se liability interlocutory appeal summary judgment record inferences therefrom must viewed light favorable respondents nevertheless rather identifying clearly controlling principles remanding decision completed record makes per se judgment invalidity respondents contention consumers medical services benefited substantially plan given short shrift concedes parties conducted limited amount pretrial discovery ante leaving undeveloped facts critical informed decision case think today decision incomplete record consistent proper judicial resolution issue complexity novelty importance public therefore dissent maricopa pima foundations medical care professional associations physicians organized medical societies respective counties foundations established make available type prepaid medical insurance plan aspects target litigation plan foundations insure risks rather key function secure agreement among member physicians schedule specific medical services fee schedule agreed upon following process consultation balloting foundations invite private insurance companies participate offering medical insurance policies based upon schedule insurers agree offer complete reimbursement insureds full amount medical bills long bills exceed schedule insured plan free go physician physician bills foundation directly services performed insured chosen physician foundation member bill exceeds foundation schedule insured liable excess billing physician foundation member foundation disallows excess pursuant agreement physician executed upon joining foundation thus plan offers complete coverage medical expenses still permits insured choose physician ii case comes us plaintiff motion summary judgment limited discovery therefore noted inferences drawn record must viewed light favorable respondents diebold requires acknowledges consider foundation arrangement one impose meaningful limit physicians charges enables insurance carriers limit calculate efficiently risks underwrite therefore serves effective cost containment mechanism saved patients insurers millions dollars ante question whether condemn arrangement forthwith sherman act law designed benefit consumers several aspects record key significance stressed first foundation arrangement forecloses competition unlike classic cartel agreement foundation plan instruct potential competitors deal consumers following terms others rather physicians participate foundation plan free associate medical insurance plans fee level high low directly serve uninsured patients fee level high low similarly insurers participate foundation plan also remain liberty business outside plan physician foundation member fee level physicians locked plan one year membership see supra thus freedom compete well freedom withdraw preserved cites case remotely comparable plan agreement condemned per se basis second record must find insurers represent consumer interests normally consumers search high quality low prices consumer insured chosen medical insurance plan largely indifferent amount physician charges coverage full plan insurer however indifferent keep insurance premiums competitive level remain profitable insurers including contracts foundations step consumer shoes incentive contain medical costs indeed insurers may parties effective power restrain medical costs given difficulty patients experience comparing price quality professional service medical care record us evidence opposition foundation plan insurance companies matter members public rather seven insurers willingly chosen contract foundations task developing schedules record us must infer foundation plan open insurers physicians public fact benefited consumers enabl ing insurance carriers limit calculate efficiently risks underwrite ante nevertheless even though case incomplete summary judgment record conclusively draws contrary inferences support per se judgment iii settled law arrangement labeled price fixing condemned per se equally well settled characterization applied talisman every arrangement involves literal fixing prices many lawful contracts mergers partnerships fix prices cases require discerning approach inquiry antitrust case simply one determining whether two potential competitors literally fixed price rather necessary characterize challenged conduct falling within without category behavior apply label per se price fixing often always simple matter broadcast music columbia broadcasting system characterizing arrangement per se agreement meriting condemnation determine whether naked restrain trade purpose except stifling competition topco associates quoting white motor see also continental gte sylvania determination necessary departure standard must based upon demonstrable economic effect rather upon formalistic line drawing part inquiry must determine whether procompetitive economies arrangement purportedly makes possible substantial realizable absence agreement example national society professional engineers held unlawful per se violation engineering association canon ethics prohibited competitive bidding members parties compiled voluminous discovery trial record carefully considered rather rejected hand engineers affirmative defense agreement competitive bidding tempt engineers inferior work threaten public health safety refused accept defense merits confirm ed rather refut ed anticompetitive purpose effect agreement ibid analysis incident price fixing characterization found substantial procompetitive efficiencies see also catalano target sales challenged arrangement condemned lacked procompetitive justification apparent potentially redeeming value broadcast music columbia broadcasting system supra minimum price fixing literal sense nevertheless agreed unanimously arrangement copyright clearinghouses sold performance rights entire libraries blanket rather individual basis warrant condemnation per se basis individual licensing allowed competition copyright owners reasoned licensing blanket basis yielded substantial efficiencies otherwise realized see indeed blanket license extent different product sum fact health insurance plan literally involves setting ceiling prices among competing physicians justify condemning plan per se illegal clear record agreement among physicians plainly anticompetitive elaborate study effects needed establish illegality may properly make per se judgment national society professional engineers supra cases demonstrate per se label assigned without carefully considering substantial benefits procompetitive justifications especially true agreement attack novel case see broadcast music supra topco associates supra considerable experience certain business relationships courts classify per se violations iv acknowledges per se ban price fixing invoked every time potential competitors literally fix prices ante one also expected acknowledge per se characterization inappropriate challenged agreement plan achieves public procompetitive benefits otherwise attainable neither provide alternative criteria per se characterization determined content simply brand type plan price fixing describe agreement broadcast music also literally involved fixing prices fundamentally different ante fact however two agreements similar important respects involved competitors resulted pricing arrangement also prompted need better service consumers arrangement apparently makes possible new product reaping otherwise unattainable efficiencies effort distinguish broadcast music thus unconvincing defending holding also suggests respondents arguments application per se rule better directed legislature ante curious advice sherman act mention per se rules congress decided broadcast music relevant cases since enactment sherman act duty courts interpret apply general mandate benefit consumers broadcast music plaintiff yet discharged burden proving respondents entered plainly anticompetitive combination without substantial procompetitive efficiency justification view district therefore correctly refused grant state motion summary judgment critical disputed issue fact remains unresolved see fed rule civ proc believe action today loses sight basic purposes sherman act noted antitrust laws consumer welfare prescription reiter sonotone rush condemn novel plan knows little suggests end achieved invalidating activities may potential harm little record show effect plan suggests means providing medical services fact benefits rather injures persons need complex economy complex economic arrangements commonplace unwise case novel important one make final judgment absence complete record mandatory inferences create critical issues fact pima foundation open pima county area physician licensed arizona renewable membership term voluntary resignation provision permits earlier exit january following announcement intent resign maricopa foundation admits physicians members county medical society maricopa foundation renewable term membership initial membership may term less year uniform annual termination date members maintained medical societies professional associations physicians practicing particular county pima county medical society pima foundation dismissed case pursuant consent decree three private carriers underwrite various pima plans arizona blue shield pacific mutual life insurance connecticut general life insurance co latter two companies also underwrite plans maricopa foundation five private insurance companies apparently large employers state arizona motorola also act insurers respect employees insurance plans foundations act insurance companies claims agents contract basis administer claims extent review medical necessity propriety treatment claim entered foundations charge insurers fee various services recent years fee set insurers premiums agreement provides part physician agrees bound respect maximum fees fee determination oundation consistent schedule adopted foundation physician membership app agreement also provides foundation members understand agree participating membership oundation shall affect method computation amount fees billed respect medical care patient ibid least seven insurance companies competing relevant market see supra stage case must infer competing vigorously successfully term consumer commonly used antitrust cases literature used herein mean persons need may need medical services physician state introduced evidence summary judgment motion supporting apparent view insurers effectively perform function without physician participation clear however price quality professional services unlike commercial products difficult compare cf bates state bar arizona opinion powell particularly true medical service presumably reason participating insurers wish utilize foundations services see broadcast music columbia broadcasting system stevens dissenting part holds ascap blanket license species price fixing categorically forbidden sherman act agree holding cf continental gte sylvania identifying achievement efficiencies redeeming virtue decision sustaining agreement per se challenge sullivan law antitrust per se characterization inappropriate price agreement achieves great economies scale thereby improves economic performance higher burden might reasonably placed plaintiff agreement may involve efficiencies case physicians effect vote foundation schedules broadcast music copyright owners aggregated copyrights group package sold rights package group price distributed proceeds among according formula see columbia broadcasting system american society composers authors publishers case foundations schedules attempt rectify inflationary consequence patients indifference size physicians bills insurers commitment reimburse whatever usual customary reasonable charges physicians may submit broadcast music market defect inhered fact performed copyrighted music profit numerous widespread performances fleeting practical matter impossible many individual copyright owners negotiate license users detect unauthorized uses case record us indicates insurers best situated decide best motivated inspire trust judgment believe foundations efficient providers scheduling service broadcast music found blanket copyright clearinghouse system reduce costs absolutely broadcast music little competition among individual composers separate compositions ante irrational ground distinction competition existed see also cooperative agreement competition yet persists among physicians sensible reason invalidate agreement refusing similarly condemn broadcast music agreements completely effective eliminating competition also offers distinction foundations permit creation different product ante foundations provide different product precisely extent broadcast music clearinghouses clearinghouses provided copyright holders offered individual sellers rights use individual compositions clearinghouses able obtain rights efficiently however eliminated need engage individual bargaining individual copyright owner see manner foundations set innovative means deliver basic service insured medical care wide range physicians one choice economical manner foundations schedules replace weak cost containment incentives typical usual customary reasonable insurance agreements stronger cost control mechanism absolute ceiling maximum fees charged conduct insurers case indicates believe foundation plan presently exists efficient means developing administering schedules stage litigation therefore must agree foundation plan permits economical delivery basic insurance service extent different product broadcast music medical services differ typical service commercial product issue antitrust case services physicians rendered basis rarely compared recipient person requiring medical service advice ready way comparing physicians shopping quality medical service lesser price primarily reason foundations operating plan issue perform function neither physicians prospective patients perform individually collective average basis physicians express willingness render certain identifiable services specified fees leaving patients free choose physician thus case derive little guidance conventional perfect market analysis antitrust law give greater weight uniqueness medical services certainly invalidate per se basis plan may fact perform uniquely useful service affirmance district holding immunized medical service plan issue foreclosed eventual conclusion remand arrangement deemed per se invalid district found petitioner failed establish per se violation sherman act question remained whether plan comports rule reason see gypsum