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Doctor-owned hospitals plan suit on new healthcare law

Dallas Morning News, June 3, 2010

A group of physician-owned hospitals plans to file a lawsuit asking a federal court in Tyler, TX, to halt the new healthcare law's ban on Medicare and Medicaid reimbursements to future doctor-owned facilities. The Dallas-Fort Worth area has more than 22 physician-owned hospitals. Nationwide, there are 265, with an additional 29 set to open before Dec. 31, when the new law bars federal payments. The law would also withhold federal reimbursements to physician-owned hospitals that expand after the end of the year—which would disrupt work under way at Texas Spine and Joint Hospital, the Dallas Morning News reports.