Federal Trade Commission, Petitioner v. Phoebe Putney Health System, Inc., et al. (568 U.S. 216)

U.S. Supreme Court · decided February 19, 2013 · Supreme Court Database (Spaeth)

Citation
568 U.S. 216 · 133 S. Ct. 1003
Decided
February 19, 2013
Term
October Term 2012
Vote
9–0
Majority author
Justice Sotomayor
Issue area
Economic Activity
Disposition
Reversed and remanded
Outcome
Petitioning party won
Ideological direction
Liberal

Opinion excerpt

Justice Sotomayok delivered the opinion of the Court. Under this Court’s state-action immunity doctrine, when a local governmental entity acts pursuant to a clearly articulated and affirmatively expressed state policy to displace competition, it is exempt from scrutiny under the federal antitrust laws. In this case, we must decide whether a Georgia law that creates special-purpose public entities called hospital authorities and gives those entities general corporate powers, including the power to acquire hospitals, clearly articulates and affirmatively expresses a state policy to permit acquisitions that substantially lessen competition. Because Georgia’s grant of general corporate powers to hospital authorities does not include permission to use those powers anticompetitively, we hold that the clear-articulation test is not satisfied and state-action immunity does not apply. f—4 A In 1941, the State of Georgia amended its Constitution to ■ allow political subdivisions to provide health care services. 1941 Ga. Laws p. 50. The State concurrently enacted the Hospital Authorities Law (Law), id., at 241, Ga. Code Ann. §31-7-70 et seq. (2012), “to provide a mechanism for the operation and maintenance of needed health care facilities in the several counties and municipalities of th[e] state.” §31-7-76(a). “The purpose of the constitutional provision and the statute based thereon…

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