As predicted here and here, this Todd Ackerman/Chronicle article reports that the Texas Medical Center managers’ board of directors rejected Baylor College of Medicine complaint‘s Wednesday that the Medical Center’s historic charter and deed restrictions prohibit Methodist Hospital‘s creation and operation of its own education and research programs and its partnership with the New York-based Cornell University Weill Medical School.
As an aside, Mr. Ackerman notes that the TMC board and the Texas Attorney General are tiring of the Baylor-Methodist spat:

In a letter to the presidents of Baylor and Methodist, the board also delivered a rebuke of sorts, reminding the battling institutions of their historic obligation to cooperate “to better serve the interests of the people of Texas” and calling for them to resolve their dispute. It marked the first time since the longtime partners split in April 2004 that the TMC made such a formal appeal.
A similar appeal was made after the meeting by Texas Attorney General Greg Abbott’s office, which previously had stayed out of the dispute. Saying it has concerns about the future of the Medical Center, it released a statement expressing hope the two institutions “exhaust every avenue in trying to work out their differences.”

My sense is that a lawsuit between the two former Medical Center partners is still a distinct possibility. Stay tuned.