Hospital Corporation of America v. Federal Trade Commission
United States Court of Appeals for the Seventh Circuit
807 F.2d 1381 (1986)
Hospital Corporation of America (HCA) (defendant), which already owned a Chattanooga hospital, acquired two more in 1981 and 1982 plus management contracts for two additional hospitals, giving it control of five of Chattanooga's eleven hospitals and raising its market share from 14% to 26%; the four largest hospital groups' combined share rose from 79% to 91%. The FTC (plaintiff) found the acquisitions violated Section 7 of the Clayton Act based on evidence including Chattanooga hospitals' history of cooperation and other market features prone to collusion, and HCA appealed the FTC's order.
Whether a merger lessens competition in violation of the Clayton Act if it increases the probability of market collusion, and whether an antitrust plaintiff must prove actual competitive harm to prevail.