Hospital authority bill fails to meet crossover deadline

Phoebe North Hospital located on Palmyra Road.

Phoebe North Hospital located on Palmyra Road.

ATLANTA — The bill that would have changed Georgia law to reflect a recent U.S. Supreme Court decision and make it easier for hospital authorities across the state to buy and sell hospitals without antitrust scrutiny from the federal government will have to sit idle until next January before it will have a shot at becoming law.

House Bill 230, which was sponsored by Reps. Jay Powell, R-Camilla, Mickey Channell, R-Greensboro, Jason Shaw, R-Lakeland, Richard Smith, R-Columbus, Ed Rynders, R-Leesburg, and Stacey Abrams, D-Atlanta, failed to make it out of committee and onto the floor for a vote before the end of crossover day Thursday, meaning it will have have to remain in the hopper until next January when the Georgia House reconvenes for the second half of its two-year term, officials in the Georgia House of Representatives Clerk Office said Friday.

If passed, HB 230 would amend Georgia law so that “hospital authorities created thereunder are acting pursuant to state policy; to articulate clearly and express affirmatively, and to clarify that it is and has been, the policy of the State of Georgia that such hospital authorities in the exercise of the powers specifically granted to them in Article 4 of Chapter 7 of Title 31 shall be immune from antitrust liability to the same degree and extent as enjoyed by the State of Georgia.”

Phoebe officials, who said the bill could be “helpful,” in their ongoing legal fight with the Federal Trade Commission over the purchase of former cross-town rival Palmyra Medical Center, issued a statement Friday morning.

“House Bill 230 was a statewide bill that impacted all authority hospitals, and legislators saw a need a (sic) for this legislation. Certainly from our perspective, clarity around this issue would have been helpful, but in absence of that we are continuing to follow the FTC processes,” a statement released by Phoebe Friday stated.

The bill was offered Feb. 6.

On Feb. 19, the U.S. Supreme Court rendered its opinion of a legal challenge brought by the Federal Trade Commission against the Hospital Authority of Dougherty County, Phoebe Putney Memorial Hospital and Hospital Corporation of America attempting to block the authority’s $195 million purchase on behalf of Phoebe of the hospital formerly known as Palmyra Medical Center. The FTC contended that the purchase would create a monopoly on healthcare in Southwest Georgia and could lead to higher healthcare prices for consumers.

The authority and Phoebe countered, saying that, as an entity of the state, the authority was exempt from antitrust scrutiny.

In the opinion written by Justice Sonya Sotomayor, all nine justices concur that Georgia law isn’t “clearly articulated” or affirmatively expressed when it comes to whether hospital authorities can conduct business free of the federal government’s antitrust provisions.

“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,” the opinion begins. “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.”

The supreme court’s decision throws the matter back down to the lower courts to hash out what will become of Phoebe North.


chinaberry25 2 years, 7 months ago

Phoebe probably introduced this bill with the politicians here in SW GA.


KaosinAlbany 2 years, 7 months ago

Oh yes, Phoebe certainly has some lobbist working for them in Washington and at the State level.


FryarTuk 2 years, 7 months ago

There is some question as to whether they (PPHS) need it. Afterall, how can they be required to put the toothpaste back in the tube. The remedy maybe negotiated prior to returning to the Court system which may just have to bless a resolution. It would be of interest to learn whether SCOTUS would allow that. If the appellant drops the appeal I suppose the case is closed?

I continue to wonder why PPHS sought GA AG approval of Fitzgerald acquisition and did not ask for Palmyra. AG signed off on Fitzgerald. (But joined SEC on fighting Palmyra acquisition.) Did somebody know something?


Cartman 2 years, 7 months ago

Headline should be: Phoebe Phriends Phail


RedEric 2 years, 7 months ago

We will need to build a new motel for all the State investigators and auditors. Cause only the skin on this snake has been scratched.


reb_arty1863 2 years, 7 months ago

Please remember "send me a campaign contribution" Rynder's sponsorship of this bill. He has been there too long and needs to be replaced with someone that will represent his constituents beliefs.


Trustbuster 2 years, 7 months ago

The sponsors were taking a knee-jerk reaction to the court decision. I consider their bill as an attempt to take away local control. This smacks of Mussolini's corporate fascism.


FlunkyMonkey 2 years, 7 months ago

This was introduced THE DAY Phoebe crashed and burned in the Supreme Court. Guess Phoebe couldn't buy enough votes in Atlanta this time around. Yep--if some serious digging was done, you would find Phoebe's dirty money all over Atlanta.....


iko 2 years, 7 months ago

Rynders is now a Ken Hodges-style whore for Phoebe. He needs to go.


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