This past weekend PoliticoPro reported that the U.S. Court of Appeals for the Fifth Circuit, in Physician Hospitals of America v. Sebelius, upheld Obamacare’s stifling limits on physician-owned hospitals. A closer look at the case shows this report to be inaccurate.
On March 31, 2011, the U.S. District Court for the Eastern District of Texas ruled that Section 6001 of Obamacare, which bans new physician-owned hospitals and places severe restrictions on expansions of such hospitals, was constitutional as applied to the plaintiffs of the case: Physician Hospitals of America and Texas Spine & Joint Hospital (TSJH).
Contrary to the PoliticoPro report, the Fifth Circuit did not uphold the district court’s decision, but vacated it. Furthermore, the Fifth Circuit did not even discuss the merits of the district court’s holding that Section 6001 of Obamacare is constitutional. Instead, the Fifth Circuit ruled that, under the facts of this case, federal courts do not have jurisdiction to decide the matter. Read more »