US: Phoebe Putney hospital saga unexpectedly revived by FTC

A settlement reached with the Federal Trade Commission over Georgia-based healthcare conglomerate Phoebe Putney Health System’s acquisition of rival hospitals is now in limbo, say reports.

The FTC and Phoebe Putney reached a settlement last year after the FTC sued the healthcare group over its acquisition of Palmyra Park Hospital, a controversial transaction that made its way to the Supreme Court.

SCOTUS sided with the FTC last year in a unanimous decision that allowed federal regulators to review the merger, overriding Georgia’s state action immunity that cleared the hospital merger.

The sides ultimately reached a settlement that required Phoebe Putney to notify the FTC of any future acquisitions, but Georgia’s Certificate of Need laws did now allow regulators to force hospital divestitures on the company.

Now, however, reports say that the FTC has been informed of interest in acquiring the hospital bought by Phoebe Putney that sparked the antitrust dispute. As the settlement has not been finalized, reports say federal officials are now looking into whether that hospital divestiture would require the certificate-of-need state approval that prevented a forced sale.

The FTC’s director of the Bureau of Competition Deborah Feinstein sent a letter to state officials regarding the matter after it discovering that North Albany Medical Center would like to buy the disputed hospital, former Palmyra Medical Center, from Phoebe Putney.

Full Content: Bloomberg

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