Antitrust Law Daily Wrap Up, ANTITRUST—MDGa: Agreed Order Halts Further Integration of Georgia Hospitals Pending Completion of FTC Administrative Action, (Jun 7, 2013)

By Jeffrey May, J.D.

The FTC, the Hospital Authority of Albany-Dougherty County, Georgia, and Phoebe Putney Health System have reached an agreement to maintain the status quo pending the Commission's administrative challenge to the merger of Albany's Palmyra Park and Phoebe Putney Memorial hospitals. The federal district court in Albany has entered a stipulated preliminary injunction order, barring further integration of the now consummated merger (FTC v. Phoebe Putney Health System, Inc., June 5, 2013, Sands, W.).

The defendants have been operating under a temporary restraining order (TRO) since May 15. The TRO was to remain in effect until the court ruled on the agency’s Motion for Preliminary Injunction. The hearing had been scheduled for June 14. The agreed order essentially extends the terms of the TRO.

The order places restrictions on changes to certain contracts, the elimination of services or departments, the modification or cancellation of staff privileges, the termination of employees, and the reduction of compensation levels for employees. The order is to remain in effect until the Commission issues its order upon completion of the administrative proceeding or entry of the final appellate order if an appeal was taken from the Commission's order, unless the court orders otherwise upon the request of either party.

The case is back in federal district court after the U.S. Supreme Court revived the agency's action in February. In a unanimous decision, the Court held that the state action doctrine did not immunize the acquisition from attack under the antitrust laws. On May 10, the Eleventh Circuit remanded the case to the district court.

Meanwhile, administrative proceedings were resumed after the Commission lifted a stay in March. It is anticipated that the administrative trial will commence in August.

Attorneys: Amanda Lewis for FTC. Emmet J. Bondurant, II (Bondurant, Mixson & Elmore, LLP) for Phoebe Putney Health System, Inc.

Companies: HCA, Inc.; Phoebe Putney Health System, Inc.

Cases: Antitrust FederalTradeCommissionNews GeorgiaNews