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Federal Trade Commission v. Tenet Health Care Corporation

United States Court of Appeals for the Eighth Circuit
186 F.3d 1045 (1999)


Facts

Tenet Health Care Corporation (Tenet) (defendant) owned Lucy Lee Hospital, a general acute hospital in Poplar Bluff, Missouri, and also operated 10 outpatient clinics in the surrounding counties. Physician-owned Doctors’ Regional Medical Center (Doctors’ Regional) was also a general hospital in Poplar Bluff. Tenet entered into an agreement to purchase Doctors’ Regional and turn it into a long-term care facility. Area employers and health plans objected to the merger arguing that the lack of competition between Lucy Lee and Doctors’ Regional would impose hardships on benefit plan subscribers. The Federal Trade Commission (FTC) (plaintiff) brought an action to prevent the merger. The district court granted a preliminary injunction to prevent the merger and found a substantial likelihood that the merger would lessen competition between the hospitals in violation of § 7 of the Clayton Act. Tenet appealed.

Rule of Law

Issue

Holding and Reasoning (Beam, J.)

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