Physician Owned Hospitals Ask Texas Court to Invalidate Section 6001 of Healthcare Reform

Physician Hospitals of America and Texas Spine and Joint Hospital Seek to Enjoin Enforcement of Section 6001 with Florida Ruling

(Washington, D.C. – February 1) Physician Hospitals of America (PHA) and Texas Spine and Joint Hospital (TSJH) filed part one of a two part motion Tuesday asking the Eastern District of Texas to recognize the unconstitutionality of Section 6001 of the Patient Protection and Affordable Care Act (PPACA).  Section 6001 of Healthcare Reform restricts Physician Owned Hospitals’ (POHs) right to compete by prohibiting any new construction or expansion projects.    

“The Florida court struck down the entire health care law, including Section 6001, ruling it unconstitutional,” said Scott Oostdyk lead council and partner, McGuireWoods. “Texas was one of the parties to that Florida suit.  We now want to bring the Florida decision back to Texas, and ask the Court in Tyler to find Section 6001 unconstitutional.”

PHA and TSJH have a lawsuit pending in the Eastern District of Texas courts challenging Section 6001 and are awaiting a ruling from Federal Judge Michael H. Schneider.  “Courts work in tandem to insure law is even-handed,” continued Oostdyk, “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.”

On Tuesday, PHA and TSJH filed a Notice of Supplemental Authority. Friday they will file a motion for leave to strike the government's summary judgment motion and enter summary judgment for plaintiffs.

PHA President Dr. Michael Russell added, “The momentum we’ve seen over the past few weeks in Virginia, Washington, D.C., and Florida gives us reason to believe patients will soon regain their ability to choose the highest quality, most efficient care offered at physician hospitals across the country.”

There are currently 285 physician owned hospitals serving patients in 34 states.  These hospitals include general acute care, long term acute care, emergency medicine, multispecialty, women’s, children’s, rehabilitation and psychiatric.    According to the government’s HCAHPS survey data, physician owned hospitals rank first for quality in 19 states.

For more information visit:  www.physicianhospitals.org.

Contact:

Leslie Fossey           

(903)539‐7712 / leslie@azaleaortho.com 

Keri Bolte

 (312) 961-4745 / keri@physicianhospitals.org

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