Exception to the CON rule. HealthSouth's exemption from certificate-of-need law draws Alabama Hospital Association into legal fray.

The Alabama Hospital Association, like many healthcare industry lobby groups, has always taken a cautious and impartial approach to disputes among its members. But this summer, the association (headed by Michael Horsley, left) joined two hospitals in their legal battle against HealthSouth Corp. and its plan to build a "digital" facility. A hearing later this month may determine whether it ever opens for business.

Making waves. IRS zeroes in on bond pools, hospital groups' use of tax-exempt financing.

The unused debt of an Ohio hospital association has caught the attention of the Internal Revenue Service, which has been on the lookout for bogus pools that take advantage of tax-exempt financing to generate professional fees. Bondholders have been told that the federal agency is examining the loan pool, and similar scenarios may soon occur in other states.

Supreme Court ruling supports right to fair Medicaid rates.

Virginia Hospital Association should send a clear message to both the states and HCFA that Medicaid providers are entitled, as a matter of right, to challenge their Medicaid rates in federal courts on both substantive and procedural grounds. Accordingly, it is legally incumbent upon the states and HCFA to make the plan amendment process meaningful in terms of state submissions and HCFA's review and approval. Only direct provider participation can ensure this result.