Physician Hospitals of America announced the U.S. Court of Appeals for the Fifth Circuit in Houston will hear an argument tomorrow against the Patient Protection and Affordable Care Act's restriction on physician-owned hospitals.
PHA is appealing a lower court's decision that Section 6001 of the healthcare reform law, which prohibits physician-owned hospitals from expanding or building new hospitals, is constitutional. PHA argues that Section 6001 is unconstitutional on the grounds of retroactivity and a lack of just compensation. PHA claims the provisions under Section 6001 are unfairly retroactive because they halted many physician-owned hospital projects that were under way before PPACA was enacted. The appeal also claims Section 6001 deprived PHA-member hospitals of property without just compensation.
As the Supreme Court is currently considering the constitutionality of the entire healthcare reform law, the appellate court may not make a decision until after the Supreme Court has ruled, according to the release.
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