Question
In: Nursing
According to the case of Federal Trade Commission v. Phoebe Putney Health System why might the...
According to the case of Federal Trade Commission v. Phoebe Putney
Health System why might the supreme court have a different
worldview and a different perspective on the policy aspect of this
issue?
Solutions
Expert Solution
Phoebe Putney Health Systems (PPHS) leased and operated one of two hospitals in Dougherty County, Georgia. PPHS then leased the other county hospital, Palmyra Medical Center, from the Hospital Corporation of America (HCA). In April 2011, the Federal Trade Commission (FTC) filed a complaint against PPHS, alleging that by leasing Palmyra, PPHS violated the Clayton Act and the FTC Act by acting with anticompetitive effect. PPHS argues that it should be exempt from federal antitrust law under the state action doctrine. The Eleventh Circuit found for PPHS, stating that a private actor falls within the state action doctrine when its anticompetitive activity is foreseeable by the state legislature. The FTC urges a more stringent standard where the anticompetitive effect must be intrinsic to the state’s authorization. How the Supreme Court decides this case will dictate how state legislatures delegate power to local government entities, and whether or not they must formally articulate authorization for such an entity to act with anticompetitive effect.
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