District Judge Amy Clark Meacham, in a May 21st letter, asked attorneys for both sides to prepare additional proposed orders in the lawsuit that sought to stop Central Health from transferring $35 million a year to the University of Texas at Austin for Dell Medical School. (Birch et al v. Central Health et al, Cause No. D-1-GN-17-005824)
The request follows a two-hour hearing held May 9th, as reported by the Bulldog May 10th. Our video report on the hearing was published May 14th.
Meacham’s letter is cast in legal lingo but in plain English it means that neither side won the clearcut victory they sought.
Defendant Central Health is not going to get the lawsuit dismissed by Judge Meacham.
Plaintiffs will not get her to issue a final summary judgment that would stop Central Health from continuing to make those $35 million annual payments. The agency has so far transferred $350 million in money collected from Travis County property taxpayers.
The next move in this litigation, which has been pending since the lawsuit was filed in October 2017, is up the parties, should they choose to do so, by appealing or asking for a trial.
Central Health issued the following statement:
“Judge Amy Clark Meacham’s decision denying the Plaintiffs’ motion for summary judge (sic) is a positive outcome for Central Health. We remain dedicated to our mission: delivering the highest quality, most equitable healthcare to low-income residents of Travis County.”
But, as Yogi Berra said, it ain’t over till it’s over.
Attorney Fred Lewis, one of the two lawyers representing the plaintiffs, told the Bulldog, “The plaintiffs are looking into whether to appeal. If there is not an appeal then plaintiffs will have to prepare for trial.
“That will entail taking a number of depositions of Central Health board members, staff, and those involved in the genesis of Central Health.”
Case overview
Plaintiffs are Rebecca Birch and Richard Franklin III, a married couple who live in far eastern Travis County, and Esther Govea, who lives in south Austin. All three are property taxpayers in Travis County and therefore help to fund Central Health through the taxes it levies.
Plaintiffs sought a temporary or permanent injunction to enjoin Central Health from expending funds for (1) anything not related to furnishing medical aid and hospital care to indigent and financially needy residents of Travis County, and (2) for any other purpose not expressly authorized in Chapter 61 of the Texas Health and Safety Code.
Plaintiffs did not ask that money previously paid to UT for Dell Medical School be recouped.
Defendant Central Health sought to dismiss the lawsuit, stating the agency is protected by governmental immunity and asserting that its spending is within its constitutional and statutory authority.
Trust indicators: Ken Martin has been doing investigative reporting in the three-county Austin metro area since 1981. See more on Ken on the About page. Email [email protected].
Related documents:
Judge Amy Clark Meacham’s letter to attorneys for the parties, May 21, 2024
Defendant Central Health’s proposed order that preceded Judge Meacham’s letter
Plaintiffs proposed order that preceded Judge Meacham’s letter
Related Bulldog coverage:
Video: Lawsuit could halt Central Health’s $35 million a year in transfers to UT Dell Medical School, May 14, 2024
Lawsuit could halt Central Health’s $35 million a year transfers to UT Dell Medical School, May 10, 2024
Commissioners approve Central Health performance audit, April 5, 2023
Watson circumvented law to fund new medical school, November 1, 2022
Central Health’s quest for medical school accountability blocked by 2014 agreement, August 5, 2022
Central Health’s $35 million payments to Dell Medical School an unlawful gift of public funds that exceed statutory authority, June 30, 2022
New documentary takes aim at diversion of indigent healthcare funds, November 15, 2021
Lawsuit challenges Central Health spending, October 18, 2017