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Hospital Corp. of America v. FTC
United States Court of Appeals for the Seventh Circuit
807 F.2d 1381 (1986)
In 1981 and 1982, Hospital Corporation of America (Hospital Corp.) (defendant) acquired two hospitals in Chattanooga, Tennessee. The acquisitions brought Hospital Corp.’s total hospital ownership in the area to three hospitals and also gave Hospital Corp. managing control over two additional hospitals under four-year contract terms. As a result, Hospital Corp. owned or managed five of the 11 hospitals in the Chattanooga area. The Federal Trade Commission (FTC) (plaintiff) conducted an investigation into whether Hospital Corp.’s acquisitions were unlawful under § 7 of the Clayton Act due to the likelihood that competition would be substantially lessened in the Chattanooga market for hospital services. The FTC ultimately held the acquisitions to be § 7 violations, and Hospital Corp. appealed the decision.
Rule of Law
Holding and Reasoning (Posner, J.)
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