Lack Of Jurisdiction Sinks Hospitals' ACA Suit: 5th Circ.

Law360, New York (August 17, 2012, 2:30 PM EDT) -- The Fifth Circuit on Thursday nixed a suit lodged by physician-owned hospitals claiming the Affordable Care Act violates their constitutional rights by limiting Medicare payments for service referrals by its doctors, ruling that their claims fell under the Medicare Act and they hadn't yet exhausted their administrative challenges.

In a published opinion, a three-judge panel vacated a summary judgment ruling by a Texas federal judge denying trade group Physician Hospitals Association and Texas Spine & Joint Hospital Ltd.'s bid to invalidate Section 6001 of the ACA,...
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