Phoebe Putney Health System's plan to acquire HCA-owned Palmyra Medical Center for $195 million hit a major roadblock today after the Federal Trade Commission challenged the deal as anti-competitive.
The two rival hospitals, both based in Albany, Ga., announced the proposed deal in December, following approval from the Hospital Authority of Albany-Dougherty County.
But in a 5-0 decision, the FTC blocked the transaction, stating in a news release that the deal would give Phoebe Putney more than 85% of market share in the region and would allow the combined hospital “to raise prices for general acute-care hospital services charged to commercial health plans, substantially harming patients and local employers and employees.”
The FTC is also filing a complaint in federal district court that would block Phoebe Putney from acquiring control of Palmyra until the commission's administrative proceedings are complete.
“We have challenged this transaction for one very simple reason,” said Richard Feinstein, director of the FTC's Bureau of Competition, in the release. “By eliminating vigorous competition between Phoebe and Palmyra, this merger to monopoly will cause consumers and employers in the Albany region to pay dramatically higher rates for vital healthcare services, and will likely reduce the quality and choice of services available in the community as well.”
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