DALLAS – A federal district court on Thursday, July 21, dismissed NATA's lawsuit against CMS, finding it does not have jurisdiction to consider the case. While NATA is disappointed with this decision, it plans to ask the court to reconsider and if necessary, will file an appeal. NATA's continued efforts are directed at preventing the implementation of the new “incident to” rule.

Because the court determined it lacks jurisdiction, it did not make a decision on NATA's assertion that the new incident to rule is illegal and therefore should not be implemented. NATA will continue to seek an injunction against the rule.

In a 27-page order detailing its decision, the district court found in favor of NATA on many key points. However, it decided it lacks jurisdiction to hear the case because physicians had available administrative remedies that were not exhausted. NATA contends no administrative remedies were available and therefore will ask the district court to reconsider. NATA is also examining its appeal rights to the Fifth Circuit Court of Appeals. NATA plans to seek expedited relief to protect its members from further irreparable harm.

“I am gratified that the district court found in our favor on most of the points, but welcome the continued challenge to prove that we are a qualified and legitimate provider of rehabilitation services,” said NATA President Chuck Kimmel, ATC. “We will continue to represent the interests of the profession until we reach a successful conclusion and gain the recognition that we rightfully deserve.”

NATA remains committed to its goal of stopping or countering implementation of the new incident to rule. More information will be shared as it becomes available.

July 22, 2005