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TYLER, Texas—The Texas Spine & Joint Hospital and Physician Hospitals of America filed a lawsuit Friday against HHS that alleges the health reform law unconstitutionally prohibits expansion and development of physician-owned hospitals, said Molly Sandvig, the PHA's executive director.
The lawsuit, filed in U.S. district court in Tyler, Texas, also seeks a preliminary injunction against Section 6001 of the Patient Protection and Affordable Care Act, Ms. Sandvig said. Section 6001 halted expansion of physician-owned hospitals after March 23 and an injunction would allow Texas Spine & Joint Hospital in Tyler to continue with a 20-bed expansion, according to a news release announcing the lawsuit.
Developers without Medicare certification before Dec. 31 cannot open new physician-owned hospitals under the law, and 45 hospitals under development will not meet the deadline, according to the news release. Another 39 proposed physician-owned hospitals have halted development, according to the release.
Ms. Sandvig called the ban on physician-owned hospitals arbitrary and said the health reform law provisions limit access to high-quality and efficient care.
Melanie Evans is a reporter for Modern Healthcare, a sister publication of Business Insurance.