PHA is appealing a lower court’s decision that Section 6001 of the healthcare reform law, which prohibits physician-owned hospitals from expanding or building new hospitals, is constitutional. PHA argues that Section 6001 is unconstitutional on the grounds of retroactivity and a lack of just compensation. PHA claims the provisions under Section 6001 are unfairly retroactive because they halted many physician-owned hospital projects that were under way before PPACA was enacted. The appeal also claims Section 6001 deprived PHA-member hospitals of property without just compensation.
As the Supreme Court is currently considering the constitutionality of the entire healthcare reform law, the appellate court may not make a decision until after the Supreme Court has ruled, according to the release.
More Articles on Physician-Owned Hospitals:
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PHA Urges Congress to Revise Section 6001 of Healthcare Reform to Meet Patient Demand
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