Hospital Corporation of America
Federal Trade Commission
106 F.T.C. 361 (1985)
Hospital Corporation of America (HCA) bought Hospital Affiliates International for $650 million and, four months later, Health Care Corporation for $30 million, sharply increasing its hospital ownership in the Chattanooga area from one acute-care hospital to owning or managing five of eleven hospitals in the suburban area (seven of fourteen in the broader metro area). An administrative law judge found the acquisitions violated the Clayton Act and FTC Act and ordered HCA to divest two hospitals and provide advance notice of future acquisitions; HCA appealed.
Whether a hospital acquisition violates the Clayton Act if its actual or probable effect would substantially lessen competition or create a monopoly.