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Whole Woman's Health Alliance, an abortion provider with a clinic in South Bend, sued the state in 2018, trying to eliminate almost all of Indianas abortion laws.
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Whole Womans Health Alliance has been trying to open a clinic in the northern Indiana city since 2017, but the state refused to issue a license.
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The lawsuit was filed last year after the state denied the organization's application.
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The 2-1 ruling was made last month by an Indiana Department of Health administrative panel, but the panel didn't immediately explain the rejection.