U.S. Court of Appeals Judge Issues Ultimatum on Physician-Owned Hospital Restriction

Physician Hospitals of America announced U.S. Court of Appeals for the Fifth Circuit Judge Jerry Edwin Smith issued an ultimatum to determine whether the healthcare reform's restriction on physician-owned hospitals may be repealed.

Judge Smith is hearing PHA's appeal of a lower court's ruling that upheld the Patient Protection and Affordable Care Act's Section 6001. This section prohibits physician-owned hospitals from expanding existing facilities or building new hospitals. PHA is arguing that the section is unconstitutional on the grounds of retroactivity and a lack of just compensation.

Judge Smith's ultimatum calls for U.S. Attorney General Eric Holder to send him a three-page, single-spaced letter by noon Thursday addressing whether President Barack Obama's recent public statements that the PPACA should be upheld signal a belief that the judiciary does not have the right to overturn a federal statute on constitutional grounds.

The Supreme Court is considering the constitutionality of the PPACA — in part or whole — after last week's three days of hearings on the subject. Yesterday, President Obama said the Supreme Court's ruling against the law would be an example of "judicial activism," according to a New York Times report.

More Articles on Physician-Owned Hospitals:

U.S. Court of Appeals to Hear Argument Against Physician-Owned Hospital Restriction
Physician-Owned Hospitals: Conducting a Regulatory Compliance Review - 10 Immediate Steps

PHA Urges Congress to Revise Section 6001 of Healthcare Reform to Meet Patient Demand

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