government
Lawsuit against ACA doctor-owned hospital ban dismissed
NEWS IN BRIEF — Posted Sept. 10, 2012
A federal appeals court has thrown out a lawsuit challenging a provision of the Affordable Care Act that restricts the expansion of physician-owned hospitals.
Physician Hospitals of America, a trade group, had joined the Texas Spine & Joint Hospital in suing the Dept. of Health and Human Services in 2010 over the provision, saying it is unconstitutional. The ACA effectively bans the construction of new physician-owned hospitals by barring them from Medicare certification, and it also significantly restricts expansion of existing doctor-owned facilities. A district court ruled for HHS, a decision that was appealed.
In its Aug. 16 opinion, the 5th U.S. Circuit Court of Appeals dismissed the lawsuit, saying the district court never had proper jurisdiction over the case (link).
Before suing, the plaintiffs first must exhaust available administrative remedies with the government, which they have failed to do, the court said. Until administrative procedures are completed, courts cannot rule on the merits of the case, the appeals judges said.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2012/09/10/gvbf0910.htm.
