Opinion Awaited in TSJH Lawsuit

TYLER — A trial slated for December 9 is canceled in a lawsuit filed by Tyler-based Texas Spine and Joint Hospital and Physician Hospitals of America. Instead, federal judge Michael Schneider will issue an opinion based on information already gathered. The plaintiffs are challenging a provision of the new health care reform law that curbs development of physician-owned hospitals. The court found that the provision is retroactive but not unconstitutional, and plaintiffs await the explanation to be offered in the opinion. Plaintiffs’ lead counsel Scott Oostdyk says the Supreme Court has always highly disfavored retroactive laws. Oostdyk says the opinion may be issued before Christmas, but possibly not till next year.

The provision in question, Section 6001, prohibits physician-owned Medicare hospitals from expanding after March 23, 2010 and bans construction of any new physician-owned Medicare hospitals that are not Medicare certified prior to December 31, 2010. For TSJH, the issue is a planned $27 million expansion of its existing facility that was well underway at the time of the passage of the PPACA. �We were in the middle of a multi-million dollar expansion project when the bill passed and, like so many other physician-owned hospitals, we were forced to stop immediately,� Tony Wahl, TSJH CEO, noted.