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CHRISTUS HEALTH GULF COAST v. AETNA, INC.

No. 05-0710.

237 S.W.3d 338 (2007)

CHRISTUS HEALTH GULF COAST, Christus Health Southeast Texas, Gulf Coast Division, Inc., Memorial Hermann Hospital System And Baptist Hospitals of Southeast Texas, Petitioners, v. AETNA, INC. and Aetna Health, Inc., Respondents.

Supreme Court of Texas.

Delivered August 31, 2007.

Rehearing Denied November 30, 2007.

Attorney(s) appearing for the Case

Scott M. Clearman, Brian D. Walsh, McClanahan & Clearman, L.L.P., David E. Warden and Eric P. Chenoweth, Yetter & Warden, L.L.P., Houston, for Petitioners.

John B. Shely, Dimitri Zgourides, Jeffrey D. Migit and Kendall M. Gray, Andrews & Kurth L.L.P., Houston, for Respondents.

John Barrett Scott, Scott Yung LLP, Dallas, for Texas Gulf Coast HMO, Inc.

Charles W. Bailey, Austin, for amicus curiae Texas Hospital Association.

Isaac J. Lidsky, United States Department of Justice, Washington, DC, Daniel Manuel Castillo, Asst. U.S. Atty., Austin, for amicus curiae United States Department of Health and Human Services.

Chief Justice JEFFERSON delivered the opinion of the Court.

We must decide whether a Texas court has jurisdiction over certain state-law claims asserted by hospitals against a Medicare health maintenance organization, or whether the hospitals must first proceed through the federal administrative machinery. We conclude that the hospitals in this case have alleged facts supporting the trial court's jurisdiction. Accordingly, we reverse the court of appeals' judgment...

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