Ruling Against Reform Law Sparks Motion to Stop Ban on Physician-Owned Hospitals

Tags: Physician Hospitals of America | physician-owned hospitals

Pointing to a federal judge's decision to strike down the healthcare reform law, Physician Hospitals of America and Texas Spine and Joint Hospital have filed a motion to invalidate the ban on physician-owned hospitals, according to a PHA release.

The ban is part of the reform law, which Judge Roger Vinson in Florida just ruled unconstitutional. The PHA motion, filed in the Eastern District of Texas, stated: "In light of Judge Vinson’s opinion, (HHS) Secretary (Kathleen) Sebelius is incapable, as an executive branch official, of enforcing Section 6001, the section of the reform law that bans physician-owned hospitals and prevents existing facilities from expanding.

PHA and Texas Spine and Joint Hospital have a lawsuit pending in the Eastern District of Texas challenging Section 6001 and they are awaiting a ruling on that case from Federal Judge Michael H. Schneider.

"Courts work in tandem to insure law is even-handed," said Scott Oostdyk, lead counsel in the case and a partner in the law firm of McGuireWoods. "So we will now ask the Texas court to adopt Monday's Florida decision holding that PPACA 6001 is unconstitutional. Therefore, the left and right hands should hold the same law."

Read the PHA release on physician-owned hospitals.

Read the PHA's motion to invalidate the ban on physician-owned hospitals (pdf).

Read more coverage of the lawsuit against the ban on physician-owned hospitals:

- Plaintiffs Will Appeal Dismissed Lawsuit Challenging Ban on Physician-Owned Hospitals

- Hearing on Lawsuit Challenging Ban on Physician-Owned Hospitals Set For Sept. 29

- Lawsuit Challenges Ban on Physician-Owned Hospitals in Health Reform Law

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