The Federal Trade Commission voted 5-0 to make an administrative complaint against the proposed acquisition of HCA's Palmyra Medical Center in Albany, Ga., by Phoebe Putney Health System, also based in Albany, according to an FTC news release.
The FTC alleges the proposed deal would reduce competition and allow the new health system to raise prices, harming patients, local employers and employees. A combined Phoebe/Palmyra system may create a monopoly because they are the only two competing hospitals in the area. The FTC also claims Phoebe has structured the planned acquisition to use the Hospital Authority of Albany-Dougherty County in Georgia to avoid federal antitrust scrutiny through the "state action" doctrine. Phoebe plans to have the Authority acquire Palmyra and lease it to a Phoebe-controlled non-profit corporation.
Georgia's Attorney General and FTC staff are filing a separate complaint in Albany, Ga.'s federal district court to stop the transaction until the FTC completes its administrative proceedings and any subsequent appeals are concluded.
Read the FTC release on Phoebe Putney's proposed acquisition of Palmyra Park Hospital.
Read more coverage on Phoebe Putney Health System:
- Georgia's Phoebe Putney, Palmyra Medical Center Receive FTC Subpoenas for Information Surrounding Sale
- Georgia's Phoebe Putney Memorial Hospital and MCGHealth Children's Medical Center Form Partnership
- Phoebe Putney's Acquisition of Georgia's Palmyra Medical Center May Close Next Month
The FTC alleges the proposed deal would reduce competition and allow the new health system to raise prices, harming patients, local employers and employees. A combined Phoebe/Palmyra system may create a monopoly because they are the only two competing hospitals in the area. The FTC also claims Phoebe has structured the planned acquisition to use the Hospital Authority of Albany-Dougherty County in Georgia to avoid federal antitrust scrutiny through the "state action" doctrine. Phoebe plans to have the Authority acquire Palmyra and lease it to a Phoebe-controlled non-profit corporation.
Georgia's Attorney General and FTC staff are filing a separate complaint in Albany, Ga.'s federal district court to stop the transaction until the FTC completes its administrative proceedings and any subsequent appeals are concluded.
Read the FTC release on Phoebe Putney's proposed acquisition of Palmyra Park Hospital.
Read more coverage on Phoebe Putney Health System:
- Georgia's Phoebe Putney, Palmyra Medical Center Receive FTC Subpoenas for Information Surrounding Sale
- Georgia's Phoebe Putney Memorial Hospital and MCGHealth Children's Medical Center Form Partnership
- Phoebe Putney's Acquisition of Georgia's Palmyra Medical Center May Close Next Month