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Unfortunately, there is a lot of misinformation because the local news media has not covered this story. There are at least three options.
(i) Divestiture. The purchase of Palmyra is invalidated. HCA will be required to return the $195 million to the Hospital Authority, and Phoebe will be required to pay Palmyra $35 million, termed a “rescission fee”. Palmyra’s antitrust lawsuit against Phoebe would be reinstated.
HCA could either operate the hospital or sell Palmyra for its actual value, which is only a fraction of the $195 million purchase price.
(ii) The FTC could allow the purchase of Palmyra, and order the Hospital Authority to sell Palmyra to a for-profit. There are several entities which would be interested in purchasing the hospital once the litigation is concluded, should Palmyra be restored to HCA or retained by the Hospital Authority, on the condition that it be sold to a genuine competitor.
(iii) Phoebe Putney could pay a civil penalty. The funds would be utilized to finance the FTC’s efforts to combat monopolies.
Last login: Sunday, May 19, 2013