Hospital Corporation of America
Federal Trade Commission
106 F.T.C. 361 (1985)
- Written by Craig Conway, LLM
Facts
Hospital Corporation of America (“HCA”) purchased Hospital Affiliates International (“HAI”) in a stock transaction for $650 million. Four months later, HCA acquired Health Care Corporation (“HCC”) in a stock transaction for $30 million. As a result of the acquisitions, HCA increased its hospital ownership and operations in the Chattanooga, Tennessee area significantly. Within the suburban Chattanooga area, HCA went from owning one acute care hospital to owning or managing five of the eleven area acute care hospitals. In the larger market of the six-county Chattanooga Metropolitan Statistical Area (“MSA”), HCA went from owning and/or managing one acute care hospital to owning and/or managing seven of the fourteen hospitals. An administrative law judge (ALJ) found that the HCA acquisitions violated § 7 of the Clayton Act and §5 of the Federal Trade Commission Act. HCA was ordered to divest itself of two of the acquired hospitals and to notify the Federal Trade Commission prior to any additional acquisitions. HCA appealed.
Rule of Law
Issue
Holding and Reasoning (Calvani, Comm’r.)
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