PHA, Texas Spine and Joint File Second Motion to Invalidate Ban on Physician-Owned Hospitals

Physician Hospitals of America and Texas Spine and Joint Hospital in Tyler, Texas, have filed their second motion requesting restrictions on physician-owned hospitals in healthcare reform be declared unconstitutional, according to a PHA news release.

Section 6001 prohibits POHs from any new construction or expansion projects. PHA and TSJH say the law restricts POHs rights to compete.

The second motion was filed in the Eastern District of Texas, but may assist all 285 POHs in 34 states. "If the Florida judgment is accepted in Texas, it opens the doors for other physician-owned hospitals across the country to seek similar relief in their communities," McGuireWoods lead attorney Scott Oostdyk said in the release.

Both organizations filed the first motion earlier this month. A lawsuit is pending in the Eastern District of Texas challenging Section 6001. Federal Judge Michael H. Schneider will provide a ruling.

Read the PHA news release on physician-owned hospitals.

Read more about physician-owned hospitals:

- Missouri's Ozarks Community Hospital No Longer Physician-Owned

- St. Elizabeth Regional May Buy Physician-Owned Nebraska Heart Hospital

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


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