Antitrust Advisory: Eleventh Circuit Finds Competitor Hospital Is "Efficient Enforcer" for Tying Claim under Federal Antitrust Laws

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On April 29, 2010, the U.S. Court of Appeals for the Eleventh Circuit, reversing a district court’s dismissal, found that a competitor hospital, plaintiff Palmyra Park Hospital, Inc. (“Palmyra”), was an “efficient enforcer” of the antitrust laws, and could therefore have antitrust standing to pursue its antitrust tying claims against defendant Phoebe Putney Memorial Hospital (“Phoebe Putney”).

Palmyra Park Hosp. v. Phoebe Putney Mem’l Hosp. et al., No. 09-11818 (11th Cir., Apr. 29, 2010). In a fast-changing health care market, with significant revenue pressures on many providers, the court’s providing a “green light” to a competitor’s attempt to pursue antitrust claims may lead to an increase in such suits.

Please see full advisory below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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