Two would-be hospital developers sued Clark and Floyd counties in southern Indiana under the Sherman Antitrust Act and state law, alleging that moratoriums on new hospital construction represent unlawful restraint of trade. The plaintiffs, Kentuckiana Medical Center, Louisville, Ky., and Sunnyside Land Co., Elizabethtown, Ky., allege that the moratoriums were passed to protect the counties' hospitals from new competition.
The area is part of the greater Louisville market. County officials could not be immediately reached for comment. The Associated Press quoted the president of the Clark County commission as saying the plaintiffs were "grasping at straws."
According to the suit, Kentuckiana has options to purchase land with local zoning approval for acute-care hospitals in Clarksville and New Albany, Ind. Sunnyside owns land with zoning approval for a hospital in Jeffersonville, Ind.
The suit was filed this week in U.S. District Court in New Albany.