From our private database of 34,000+ case briefs...
Hospital Corp. of America v. Federal Trade Commission
United States Court of Appeals for the Seventh Circuit
807 F.2d 1381 (1986)
Hospital Corporation of America (Hospital Corp.) (defendant) was a hospital chain. Hospital Corp. owned a hospital in Chattanooga, Tennessee. In 1981 and 1982, Hospital Corp. acquired two additional hospitals in Chattanooga. The acquisitions also gave Hospital Corp. management contracts for two more hospitals in Chattanooga. Accordingly, after the acquisitions, Hospital Corp. controlled five of the 11 hospitals in Chattanooga. The Federal Trade Commission (FTC) (plaintiff) filed a complaint against Hospital Corp. The FTC alleged that Hospital Corp.’s acquisitions violated § 7 of the Clayton Act, because the transactions substantially lessened competition in the Chattanooga hospital-services market. The FTC demonstrated that Hospital Corp.’s market share increased from 14 percent to 26 percent. The combined market share of the four biggest hospitals in the Chattanooga market increased from 79 percent to 91 percent. The FTC presented additional evidence of Chattanooga hospitals’ cooperative tradition and other economic aspects of the hospital-services market that showed a market prone to collusion. Hospital Corp. argued the mergers did not threaten competition, because differences in services and organizational structure made collusion difficult or unappealing. Hospital Corp. also argued the fact that hospitals are paid mainly by sophisticated insurance companies deters anticompetitive collusion. The FTC ruled that Hospital Corp.’s acquisitions violated § 7 of the Clayton Act. Hospital Corp. appealed.
Rule of Law
Holding and Reasoning (Posner, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 607,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 607,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 34,000 briefs, keyed to 984 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.