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HCA Healthcare Corp. v. Texas Dep't of Insurance

Because the hospitals have neglected to demonstrate that former �413.031(k) Texas Labor Code titled "Medical Dispute Resolution" operates unconstitutionally in medical necessity disputes, the court found that the hospitals have failed to meet their burden of showing that former �413.031(k) is unconstitutional in all of its applications. Austin Court of Appeals, No. 03-07-00007-CV, 12-18-2009

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OPINION

On January 17, 2006, HCA Healthcare Corporation, Texas Health Resources, Inc., the Texas Hospital Association, and other hospitals and hospital systems (“the Hospitals”) filed suit for declaratory and injunctive relief against the Texas Department of Insurance (“the Department”), the Department’s Division of Workers’ Compensation (“DWC”), and Albert Betts, Jr., Commissioner of DWC. Texas Mutual Insurance Company (“Texas Mutual”), Farmers Insurance Exchange, Truck Insurance Exchange, Mid-Century Insurance Company, and the Texas Association of School Boards Risk Management Fund (collectively, “the Insurers”) intervened in support of DWC regarding the Hospitals’ request that the trial court reverse 1,406 decisions issued by DWC after September 1, 2005. Texas Mutual filed a declaratory judgment action against DWC regarding the right to a contested case hearing.

Texas Mutual moved for summary judgment on its claim to a right to a contested case hearing and for partial summary judgment against the Hospitals’ request to reverse the 1,406 decisions issued by DWC. The Hospitals moved for summary judgment on their claim to a right to a contested case hearing and their request to reverse the decisions issued by DWC. DWC moved for summary judgment in opposition to both the Hospitals and Texas Mutual.

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