Roman Catholic Bishop Thomas Olmsted of Phoenix revoked the church affiliation of St. Joseph's Hospital and Medical Center after it terminated the pregnancy of an ill woman in November.
The hospital can no longer call itself Roman Catholic, hold masses or keep consecrated wafers in its chapel.
The Catholic Health Association has sided with the hospital, saying that "confronted with a heartbreaking situation" it "correctly applied" church guidelines.
Steven Avella, a priest and professor at Marquette University, Milwaukee, called health care "the fault line developing between the bishops and within wider society."
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