Fresenius Med. Care Holdings v. Tucker (Summary)

PATIENT REFERRALS

Fresenius Med. Care Holdings v. Tucker, No. 11-14192 (11th Cir. Jan. 10, 2013)

The United States Court of Appeals for the Eleventh Circuit affirmed a motion for summary judgment in favor of the board of medicine.

A group of renal dialysis providers brought suit against the board, claiming that a state statute that prohibits physicians from referring their patients to business entities in which they have a financial interest was unconstitutional because it preempted federal law, violated the commerce clause, and violated due process.

The circuit court held that the state statute did not preempt federal law, but properly prohibited what would be allowed under federal law.  The court stated that it was possible for the providers to comply with the state law without violating any parts of the federal law.  The court noted that the federal law allowed for the possibility of state laws to limit the exceptions it allows.

The circuit court also held that the state statute did not violate the commerce clause or discriminate against interstate commerce.  The court stated that state law treated in state and out of state clinics in a similar way.  Any burden placed on out of state businesses is not excessive and serves the appropriate purpose of protecting the state’s patients.

The circuit court held that the statute did not violate due process.  The court stated that it was rational for the state to remove the exception granted by federal law in order to reduce conflicts and improve health care.