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US: ‘Drastic’ restraining order issued on Phoebe Putney’s merger after SCOTUS case

By  |  May 16, 2013
US: ‘Drastic’ restraining order issued on Phoebe Putney’s merger after SCOTUS case

In what was described as an “extraordinary and drastic” ruling, a federal judge has granted a request for a restraining order preventing Georgia’s Phoebe Putney Health System from following through with its recent acquisition of a rival hospital in a $200 million deal, a buyout that made its way to the US Supreme Court in a debate of federal versus state antitrust law. The temporary restraining order was granted on Wednesday and will reportedly prevent the integration of Palmyra Medical Center into Phoebe Putney. The ruling prevents Phoebe Putney from hanging prices, but will allow the system to generate new contracts with health insurers, which may result in different prices. The Federal Trade Commission fought for two years with the healthcare system alleging that the buyout resulted in a monopoly in the area.

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