federal trade commission phoebe putney health system et argued november decided february georgia hospital authorities law law political subdivisions may create public entities called hospital authorities provide operation maintenance needed health care facilities several counties municipalities th state law permits authorities exercise public essential governmental functions delegates numerous general powers including ability acquire lease hospitals public health facilities code ann hospital authority county authority owns phoebe putney memorial hospital memorial one two hospitals county authority formed two private nonprofit corporations manage memorial phoebe putney health system pphs phoebe putney memorial hospital ppmh authority decided purchase second hospital county lease subsidiary pphs federal trade commission ftc issued administrative complaint alleging transaction substantially reduce competition market hospital services violation federal trade commission act clayton act ftc georgia subsequently sued authority pphs ppmh others collectively respondents seeking enjoin transaction pending administrative proceedings district denied request preliminary injunction granted respondents motion dismiss holding respondents immune antitrust liability doctrine eleventh circuit affirmed concluded authority local governmental entity entitled immunity challenged anticompetitive conduct foreseeable result law reasoned state legislature readily anticipated anticompetitive effect given breadth powers delegated hospital authorities particularly leasing acquisition powers lead consolidation hospital ownership held georgia clearly articulated affirmatively expressed policy allowing hospital authorities make acquisitions substantially lessen competition immunity apply pp recognized parker brown federal antitrust laws prevent imposing market restraints act government doctrine immunity federal antitrust law may extend nonstate actors carrying state regulatory program see patrick burget given antitrust laws values free enterprise economic competition immunity disfavored ftc ticor title ins recognized clear challenged anticompetitive conduct undertaken pursuant state regulatory scheme immunity attach activities substate governmental entities undertaken pursuant clearly articulated affirmatively expressed state policy displace competition community communications boulder state legislature need expressly state intent hallie eau claire anticompetitive effect must foreseeable result state authorized pp respondents immunity defense fails test evidence state affirmatively contemplated hospital authorities displace competition consolidating hospital ownership authority powers including acquisition leasing powers mirror general powers routinely conferred state law private corporations required establish immunity authority must show delegated authority act act regulate anticompetitively columbia omni outdoor advertising boulder concluded colorado law granting municipalities power enact ordinances governing local affairs satisfy test state position one mere neutrality respecting municipal actions challenged anticompetitive state said anticompetitive actions principle controls grants general corporate power allowing substate governmental entities participate competitive marketplace typically used without raising federal antitrust concerns state said contemplated powers used anticompetitively though law allows authority acquire hospitals clearly articulate affirmatively express state policy empowering authority make acquisitions existing hospitals substantially lessen competition pp concluding otherwise eleventh circuit applied concept foreseeability loosely recognizing legislature expected catalog anticipated effects statute delegating authority substate governmental entity hallie approached inquiry practically without diluting ultimate requirement state must affirmatively contemplated displacement competition challenged anticompetitive effects attributed state parker thus found state policy displace federal antitrust law sufficiently expressed displacement competition inherent logical ordinary result exercise authority delegated state legislature scenario state must foreseen implicitly endorsed anticompetitive effects consistent policy goals see hallie omni contrast state grants entity general power act backdrop federal antitrust law entities might transgress antitrust requirements exercising powers anticompetitively reasonable legislature ability anticipate possibility falls well short clearly articulating affirmative state policy displace competition eleventh circuit argument echoed respondents case falls within foreseeability standard used hallie omni rejected pp respondents additional arguments also unpersuasive contend hospital authorities granted unique powers responsibilities fulfill georgia objective providing access adequate affordable health care foreseeable decide best way serve communities acquire existing local hospital instead incurring additional expense regulatory burden expanding constructing facility even though authorities may differ private corporations offering hospital services neither law provision clearly articulates state policy allowing authorities exercise general corporate powers without regard anticompetitive effects respondents also contend doubt whether test satisfied federal courts err side recognizing immunity avoid improper interference state policy choices law ambiguous respondents suggestion inconsistent principle immunity disfavored ticor title pp reversed remanded sotomayor delivered opinion unanimous opinion notice opinion subject formal revision publication preliminary print reports readers requested notify reporter decisions washington typographical formal errors order corrections may made preliminary print goes press federal trade commission petitioner phoebe putney health system et al writ certiorari appeals eleventh circuit february justice sotomayor delivered opinion immunity doctrine local governmental entity acts pursuant clearly articulated affirmatively expressed state policy displace competition exempt scrutiny federal antitrust laws case must decide whether georgia law creates public entities called hospital authorities gives entities general corporate powers including power acquire hospitals clearly articulates affirmatively expresses state policy permit acquisitions substantially lessen competition georgia grant general corporate powers hospital authorities include permission use powers anticompetitively hold test satisfied immunity apply state georgia amended constitution allow political subdivisions provide health care services laws state concurrently enacted hospital authorities law law code ann et seq provide mechanism operation maintenance needed health care facilities several counties municipalities th state purpose constitutional provision statute based thereon create organization carry make workable duty state owed indigent sick dejarnette hospital auth albany citations omitted amended law authorizes county municipality certain combinations counties municipalities create public body corporate politic called hospital authority hospital authorities governed boards appointed governing body county municipality area operation law hospital authority exercise public essential governmental functions delegated powers necessary convenient carry effectuate law purposes giving content general delegation law enumerates powers conferred upon hospital authorities including power acquire purchase lease otherwise operate projects defined include hospitals public health facilities construct reconstruct improve alter repair projects lease operation others project provided certain conditions satisfied establish rates charges services use facilities authority hospital authorities may operate construct project profit accordingly must set rates cover operating expenses create reasonable reserves year law adopted city albany dougherty county established hospital authority county authority authority promptly acquired phoebe putney memorial hospital memorial operation albany since authority restructured operations forming two private nonprofit corporations manage memorial phoebe putney health system pphs subsidiary phoebe putney memorial hospital ppmh authority leased memorial ppmh per year years lease ppmh exclusive authority operation memorial including ability set rates services consistent ppmh subject lease conditions require provision care indigent sick limit rate return memorial one two hospitals dougherty county second palmyra medical center palmyra established albany located two miles memorial time suit brought case palmyra operated national hospital network hca hca together memorial palmyra account percent market hospital services provided commercial health care plans customers six counties surrounding albany memorial accounts percent market pphs began discussions hca acquiring palmyra following negotiations pphs presented authority plan authority purchase palmyra pphs controlled funds lease palmyra pphs subsidiary per year memorial lease agreement authority unanimously approved transaction federal trade commission ftc shortly thereafter issued administrative complaint alleging proposed transaction create virtual monopoly substantially reduce competition market hospital services violation federal trade commission act stat clayton act stat ftc along state subsequently filed suit authority hca palmyra pphs ppmh new pphs subsidiary created manage palmyra collectively respondents seeking enjoin transaction pending administrative proceedings see district middle district georgia denied request preliminary injunction granted respondents motion dismiss supp district held respondents immune antitrust liability doctrine see appeals eleventh circuit affirmed initial matter agree ftc facts alleged joint operation memorial palmyra substantially lessen competition tend create create monopoly transaction immune antitrust liability see appeals explained local governmental entity authority entitled immunity challenged anticompetitive conduct georgia legislation according anticompetitive conduct foreseeable state legislature necessary reasoned anticompetitive effect ordinarily occurs routinely occurs inherently likely occur result empowering legislation quoting ftc hospital bd directors lee applying standard appeals concluded law contemplated anticompetitive conduct challenged ftc noted impressive breadth powers given hospital authorities include traditional powers private corporations additional capabilities power exercise eminent domain see specifically reasoned georgia legislature must anticipated grant power hospital authorities acquire lease projects produce anticompetitive effects oreseeably acquisitions consolidate ownership competing hospitals eliminating competition appeals also rejected ftc alternative argument immunity apply transaction substance involved transfer control palmyra one private entity another authority acting mere conduit sale evade antitrust liability see granted certiorari two questions whether georgia legislature powers vested hospital authorities clearly articulated affirmatively expressed state policy displace competition market hospital services whether immunity nonetheless inapplicable result authority minimal participation negotiating terms sale palymra authority limited supervision two hospitals operations see concluding answer first question reverse without reaching second ii parker brown held nothing language sherman act et seq history suggested congress intended restrict sovereign capacity regulate economies act read bar imposing market restraints act government following parker held certain circumstances immunity federal antitrust laws may extend nonstate actors carrying state regulatory program see patrick burget southern motor carriers rate conference given fundamental national values free enterprise economic competition embodied federal antitrust laws immunity disfavored much repeals implication ftc ticor title ins consistent preference recognize immunity clear challenged anticompetitive conduct undertaken pursuant regulatory scheme state accordingly loser analysis required activity issue directly state rather carried others pursuant state authorization hoover ronwin determining whether anticompetitive acts private parties entitled immunity employ test requiring first challenged restraint one clearly articulated affirmatively expressed state policy second policy actively supervised state california retail liquor dealers assn midcal aluminum internal quotation marks omitted case involves allegedly anticompetitive conduct undertaken substate governmental entity municipalities political subdivisions sovereign immunity parker apply directly see columbia omni outdoor advertising ette louisiana power light plurality opinion time however substate governmental entities receive immunity antitrust scrutiny act pursuant state policy displace competition regulation monopoly public service rule preserves freedom use municipalities administer state regulatory policies free inhibitions federal antitrust laws without time permitting purely parochial interests disrupt nation goals private parties immunity attach activities local governmental entities undertaken pursuant clearly articulated affirmatively expressed state policy displace competition community communications boulder unlike private parties entities subject active state supervision requirement less incentive pursue guise implementing state policies hallie eau claire pass articulation test state legislature need expressly state statute legislative history legislature intends delegated action anticompetitive effects rather explained hallie immunity applies anticompetitive effect foreseeable result state authorized applied principle omni concluded test satisfied suppression competition billboard market foreseeable result state statute authorizing municipalities adopt zoning ordinances regulating construction buildings structures iii applying test law us conclude respondents claim immunity fails evidence state affirmatively contemplated hospital authorities displace competition consolidating hospital ownership acquisition leasing powers exercised authority challenged transaction principal powers relied upon appeals finding immunity see mirror general powers routinely conferred state law upon private powers possessed hospital authorities appeals characterized impressive breadth also fit pattern including ability make execute contracts set rates services sue sued borrow money residual authority exercise powers possessed private corporations case law makes clear authority act insufficient establish immunity substate governmental entity must also show delegated authority act regulate anticompetitively see omni boulder held colorado home rule amendment allowing municipalities govern local affairs satisfy test doubt case city authority matter state law pass ordinance imposing moratorium cable provider expansion service rejected proposition general grant power enact ordinances necessarily implies state authorization enact specific anticompetitive ordinances approach wholly eviscerate concepts articulation affirmative expression precedents require explained state position one mere neutrality respecting municipal actions challenged anticompetitive state said anticompetitive actions principle articulated boulder controls case grants general corporate power allow substate governmental entities participate competitive marketplace typically used ways raise federal antitrust concerns result state delegated general powers hardly said used anticompetitively ibid see also areeda hovenkamp antitrust law ed hereinafter areeda hovenkamp state grants power inferior entity presumably grants power thing contemplated anticompetitively thus law allow authority acquire hospitals clearly articulate affirmatively express state policy empowering authority make acquisitions existing hospitals substantially lessen competition concluding otherwise specifically reasoning georgia legislature must anticipated acquisitions hospital authorities produce anticompetitive effects appeals applied concept foreseeability test loosely hallie recognized embod unrealistic view legislatures work statutes written require state legislatures explicitly authorize specific anticompetitive effects immunity apply legislature explained expected catalog anticipated effects statute delegating authority substate governmental entity ibid instead approached inquiry practically without diluting ultimate requirement state must affirmatively contemplated displacement competition challenged anticompetitive effects attributed state parker thus concluded state policy displace federal antitrust law sufficiently expressed displacement competition inherent logical ordinary result exercise authority delegated state legislature scenario state must foreseen implicitly endorsed anticompetitive effects consistent policy goals example hallie wisconsin statutory law regulating municipal provision sewage services expressly permitted cities limit service surrounding unincorporated areas see unincorporated towns alleged city exercise power constituted unlawful tying arrangement unlawful refusal deal abuse monopoly power trouble concluding alleged anticompetitive effects affirmatively contemplated state clear logically result grant authority described wisconsin state legislature annexation city surrounding unincorporated area reasonable quid pro quo city require extending sewer services area quoting hallie chippewa falls without immunity federal antitrust law undermined arrangement taken completely table policy option state clearly intended cities similarly omni respondents alleged city used zoning power protect incumbent billboard provider competition found test easily satisfied even though state statutes delegating zoning authority city explicitly permit suppression competition explained purpose zoning regulation displace unfettered business freedom manner regularly effect preventing normal acts competition zoning ordinance regulating size location spacing billboards necessarily protects existing billboards competition newcomers cases found clear articulation state intent displace competition without explicit statement also involved authorizations act regulate ways inherently contrast simple permission play market foreseeably entail permission roughhouse market unlawfully kay elec cooperative newkirk state grants entity general power act whether private corporation public entity like authority backdrop federal antitrust law see ticor title course private parties local governmental entities conceivably may transgress antitrust requirements exercising general powers anticompetitive ways reasonable legislature ability anticipate potentially undesirable possibility falls well short clearly articulating affirmative state policy displace competition regulatory alternative believing case falls within scope foreseeability standard applied hallie omni appeals stated defies imagination suppose state legislature believed every geographic market georgia replete hospitals authorizing acquisitions authorities serious anticompetitive consequences respondents echo argument noting georgia counties covers small geographical area sparsely populated nearly fewer residents census brief respondents even accepting arguendo premise facts market make anticompetitive use general corporate powers foreseeable reject appeals respondents conclusion relatively small subset conduct permitted matter state law code ann potential negatively affect competition contrary appeals respondents characterization principally concerned hospital authorities ability acquire multiple hospitals consolidate operations section allows authorities acquire projects includes hospitals also health care facilities dormitories office buildings clinics housing accommodations nursing homes rehabilitation centers extended care facilities public health facilities narrowing focus market hospital services power acquire hospitals still ordinarily produce anticompetitive effects section source power newly formed hospital authorities acquire hospital first instance transaction unlikely raise antitrust concerns even small markets transfer ownership private public hands increase market concentration see areeda hovenkamp ubstitution one monopolist another antitrust violation subsequent acquisitions authorities potential reduce competition raise federal antitrust concerns markets large enough support one hospital sufficiently small merger competitors lead significant increase market concentration slender reed support appeals respondents inference iv taking somewhat different approach appeals respondents insist law read mere authorization hospital authorities participate market exercise general corporate powers rather contend hospital authorities granted unique powers responsibilities fulfill state objective providing residents access adequate affordable health hospital care see code ann respondents argue view hospital authorities statutory objective specific attributes regulatory context operate foreseeable authorities facing capacity constraints decide best serve communities needs acquiring existing local hospital rather incur additional expense regulatory burden expanding facility constructing new one see brief respondents support argument respondents observe hospital authorities simultaneously empowered act ways private entities also subject significant regulatory constraints power side appeals noted hospital authorities may acquire eminent domain property essential authority purposes restraint side hospital authorities managed publicly accountable board must operate nonprofit basis may lease project others operate determining promote community public health needs lessee receive reasonable rate return investment moreover hospital authorities operate within broader regulatory context georgia requires party seeking establish significantly expand certain medical facilities including hospitals obtain certificate need state regulators see et doubt georgia hospital authorities differ materially private corporations offer hospital services nothing law provision georgia law clearly articulates state policy allow authorities exercise general corporate powers including acquisition power without regard negative effects competition state legislature objective improving access affordable health care logically suggest state intended hospital authorities pursue end mergers create monopolies restrictions imposed hospital authorities including requirement operate nonprofit basis reveal policy particularly light national policy favoring competition restrictions read reflect modest aims legislature may viewed profit generation incompatible goal providing care indigent sick addition legislature may believed hospital authorities operate markets characteristics natural monopolies case legislature rely competition control prices see cantor detroit edison recognize georgia particularly certificate need requirement limit competition market hospital services respects regulation industry even authorization discrete forms anticompetitive conduct pursuant regulatory structure establish state affirmatively contemplated forms anticompetitive conduct tangentially related thus goldfarb virginia state bar rejected defense claims state bar adopted compulsory minimum fee schedule although state heavily regulated practice law found evidence adopted policy displace price competition among lawyers cantor concluded state commission regulation rates electricity charged public utility confer immunity claim utility free distribution light bulbs restrained trade market case fact georgia imposes limits entry market medical services apply hospital authorities private corporations clearly articulate policy favoring consolidation existing hospitals engaged active competition accord ftc university health authority eminent domain power exercised find relevant question whether state authorized hospital authorities consolidate market power potentially anticompetitive acquisitions existing hospitals finally respondents contend extent doubt whether test satisfied context federal courts err side recognizing immunity avoid improper interference state policy choices see brief respondents find law ambiguous question whether clearly articulates policy authorizing anticompetitive acquisitions fundamentally respondents suggestion inconsistent principle immunity disfavored ticor title parker progeny premised understanding respect coordinate role government counsels reading federal antitrust laws restrict sovereign capacity regulate economies provide services citizens federalism state sovereignty poorly served rule construction allow essential national policies embodied antitrust laws displaced state delegations authority intended achieve limited ends amici brief filed support ftc contends loose application test attach significant unintended consequences frequent delegations corporate authority local bodies effectively requiring disclaim intent displace competition avoid inadvertently authorizing anticompetitive conduct brief state illinois et al amici curiae see also surgical care center hammond hospital serv dist en banc decline set trap unwary state legislatures hold georgia clearly articulated affirmatively expressed policy allow hospital authorities make acquisitions substantially lessen competition judgment appeals reversed case remanded proceedings consistent opinion ordered footnotes georgia join notice appeal filed ftc longer party case tension appeals decision circuits held analogous circumstances substate governmental entities exercising general corporate powers entitled immunity see kay elec cooperative newkirk first title devaugh surgical care center hammond hospital serv dist en banc lancaster community hospital antelope valley hospital issuing decision appeals dissolved temporary injunction granted pending appeal transaction closed case moot however district remand enjoin respondents taking actions disturb status quo impede final remedial decree see knox service employees slip case becomes moot impossible grant effectual relief whatever prevailing party internal quotation marks omitted see also ftc whole foods market cadc opinion brown rejecting mootness argument similar posture amicus curiae contends recognize apply market participant exception immunity georgia hospital authorities engage proprietary activities brief national federation independent business see also columbia omni outdoor advertising leaving open possibility market participant exception argument raised parties passed lower courts consider parcel service mitchell eleventh circuit held georgia hospital authorities unique entities lie somewhere local governing body city county corporation qualify instrumentality agency subdivision georgia purposes state action immunity crosby hospital auth valdosta lowndes ftc challenged characterization georgia hospital authorities accordingly operate assumption hospital authorities akin political subdivisions compare code ann authorizing hospital authorities acquire projects enter lease agreements outlining general powers private corporations georgia include ability acquire lease property allowing corporate mergers allowing sales corporate assets corporations see southern motor carriers rate conference finding state commission decision encourage collective ratemaking common carriers entitled immunity legislature left details inherently anticompetitive process agency discretion hallie eau claire describing new motor vehicle bd cal orrin fox case express intent displace antitrust laws regulatory structure issue restricting establishment relocation automobile dealerships inherently displaced unfettered business freedom internal quotation marks brackets omitted appeals also invoked code ann provides hospital authorities power assess taxes allows applicable governing body authority area operation impose taxes cover authority expenses see provision applies cases county municipality entered contract hospital authority use facilities see contract exists case respondents relied provision briefing argument us georgia first adopted certificate need legislation part comply federal law conditioning federal funding number health care programs state enactment certificate need laws see laws amended code ann et seq see also national health planning resources development act stat repealed stat many also certificate need laws see national conference state legislatures certificate need state health laws programs online http visited available clerk case file indicating con programs table retained type certificate need program december programs repealed