The health care reform law, which the U.S. Supreme Court upheld in June, contains a provision that limits the construction of new physician-owned hospitals and the expansion of existing ones. MedPage Today reports on a ruling that is considered a set-back for these hospitals. A physician-owned hospital in the state, the Texas Spine & Joint Hospital in Tyler, stopped expansion plans after the health care law was passed. Physician Hospitals of America and other plaintiffs challenged the law in court, seeking an exemption to the regular appeals process. A court ruled that the Texas hospital was exempted, but the Fifth Circuit Court of Appeals in New Orleans rejected that ruling. An excerpt:
In order to sue, [plaintiff’s attorney] Oostdyk said, the 20-bed acute-care hospital and outpatient surgery center would have to finish construction on the $30 million expansion and begin treating patients. By then, the hospital would risk violating the law and receiving no payments for its services.
Oostdyk said he was disappointed in the decision, noting that construction on the pending projects at physician-owned hospitals could have continued had the Texas group been successful.
The hospital and physician-hospital trade group are considering their next options, including an appeal to the Supreme Court and HHS, he added.
