Physician Hospitals of America, Texas Spine and Joint to Appeal Court Decision

Physician Hospitals of America and Texas Spine and Joint Hospital will appeal a decision by the U.S. District Court for the Eastern District of Texas against the organizations' lawsuit, which contended restrictions on physician-owned hospitals are unconstitutional, according to a PHA news release.

PHA and TSJH will ask the Fifth Court of Appeals to review the district court's refusal to apply the substantive due process standard or fully evaluate appellants' equal protection arguments, according to the release.

The organizations are also seeking review of the district court's refusal to hold a trial and determination that Congress' law was not retroactive in its effect on hospital expansion transactions that have already been settled.

"We are eager for the Fifth Circuit's review of Congress' choice to strip from the healthcare industry one of its highest performing sectors, physician-owned hospitals, by retroactive and arbitrary means," Scott Oostdyk, lead council with McGuireWoods, said in the release. "If our Constitution means anything it is that legislators cannot take the private property of expanding businesses without due process of law."

Read the release on physician-owned hospitals (pdf).

Related Coverage on Physician-Owned Hospitals:
5 Arguments For Physician-Owned Hospitals
New Bills Would Repeal Ban on Physician-Owned Hospitals
Physician-Owned Hospital Advocates Head to Capitol Hill Seeking Section 6001 Reversal



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