Florida Ruling’s Impact on Physician Owned Hospitals

TYLER — A Tyler hospital is among entities paying close attention after Monday’s Florida ruling on health care reform. Physician Hospitals of America (PHA) and Texas Spine and Joint Hospital are challenging the constitutionality of Section 6001 of Healthcare Reform in Texas Federal Court. An official decision is awaited in that case. Section 6001 bans further expansion or construction of Physician Owned Hospitals (POHs).

In response to the Florida ruling, lead attorney Scott Oostdyk of McGuireWoods says, “The Florida federal court has declared the Patient Protection and Affordable Care Act to be unconstitutional in its entirety. Section 6001 of that law bars expansion by only one type of hospital — those that are physician-owned. We are hopeful that the Florida decision will stop the enforcement by the federal government of all unconstitutional limitations on hospital expansion, and PHA will seek that relief in the courts.” A news release from the hospital says PHA and its attorneys will continue to analyze this ruling and their various options moving forward.

There are currently 285 POHs in 34 states. These hospitals include general acute care, long term acute care, emergency medicine, multispecialty, women’s, children’s, rehabilitation and psychiatric.