Hospital Fails To State Antitrust Claim Against Competitor

Kaitlyn Downs is an Associate in Holland & Knight's Orlando office

In SCPH Legacy Corp. v. Palmetto Health, 724 F. App'x 275, 276 (4th Cir. 2018), the court of appeals affirmed a motion to dismiss filed by Palmetto Health (Palmetto). Providence Hospital (Providence) alleged that Palmetto conspired to eliminate competition by hiring Providence's orthopedic surgeons secretly and "en masse." As a result, Providence suffered a $50 million loss in value (as calculated by the reduction in price that another company was willing to pay to acquire Providence). The court found that Providence failed to state a claim on which relief could be granted. The court explained that no matter what entity bought the orthopedic practice, Providence would have suffered the same loss. Although Palmetto's hiring of the surgeons decreased...