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On Feb. 19, 2013, the U.S. Supreme Court issued its opinion in Federal Trade Commission v. Phoebe Putney Health System,1 holding that the state action doctrine does not immunize the Hospital Authority of Albany-Dougherty County’s purchase and lease of its only competitor hospital from federal antitrust liability because its general grant of corporate powers under Georgia law fails to clearly articulate permission to use those powers for such an anticompetitive transaction. The decision signals to lower courts the need to arrest the frequency with which state action immunity shields the application of federal antitrust law. Conversely, it behooves state legislatures to assess whether their enabling statutes sufficiently evidence an intention to immunize certain desired anticompetitive activity from federal scrutiny.

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