Court tightens scope of antitrust immunity in government-owned hospital mergers
In a unanimous decision for the Federal Trade Commission (FTC), the Supreme Court found that the state action immunity doctrine does not shield Phoebe Putney Health System’s acquisition of Palmyra Park Hospital from antitrust scrutiny, sending the parties back to FTC administrative litigation to battle over the legality of the hospital merger. The court overturned the Eleventh Circuit’s decision allowing Phoebe Putney to acquire the only other nearby hospital in Albany, Georgia, for $195m. The Supreme Court clarified the specificity required of state legislation to invoke state action immunity and, in turn, narrowed the scope of antitrust immunity potentially available to parties contemplating a transaction with a government-owned entity.
In 2011, Phoebe Putney Health System, owned by a local hospital authority, acquired Palmyra Park Hospital, in a transaction the FTC asserted created a virtual monopoly and would severely lessen competition for hospital services in the local area. The parties argued, and a Georgia district court and the Eleventh Circuit agreed, that even if the transaction created a monopoly, it was immune from antitrust scrutiny under the state action doctrine because the acquisition and the subsequent operation of the hospital were authorized pursuant to a state legislative policy to displace competition…
If you are registered and logged in to the site, click on the link below to read the rest of the Hogan Lovells briefing. If not, please register or sign in with your details below.
Click on the link above to download the briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
Why register to The Lawyer
More relevant to you
News from Hogan Lovells
News from The Lawyer
Briefings from Hogan Lovells
The decision of the US Court of Appeals has raised questions about how issuers should present their disclosures on conflict minerals under Exchange Act Rule 13p-1 and Form SD.
An interesting judgment was delivered by the Honourable J Majiki on 19 November 2013 in the Eastern Cape High Court, Port Elizabeth.
Analysis from The Lawyer
As international firms question their future in these small, closely linked markets, local lawyers too are eyeing the business environment with caution
Beyond the headline infrastructure projects, UK construction work is still recovering from the clobbering it took during the slump