Thomas Olmsted is the Bishop of Phoenix, and since learning several months ago that an abortion was performed in a "Catholic" hospital in his diocese, he has been engaged in an effort to be certain that such a thing will never happen again. The hospital is owned by a congregation of women religious who evidently do not want the local bishop looking into the ways in which ethical decisions are made at the hospital. After a prolonged effort to reach an understanding, Bishop Olmsted has now informed them that if they do not accept the instructions he has already given, he will declare -- as it is his canonical power to do -- that the hospital in question is no longer a Catholic institution. You can read about the bishop's effort to call this hospital to account in USA Today.
BIshop Olmsted is a courageous reformer of the Church and is a model of how the office of overseer should be exercised. Pray for this good shepherd of Christ's flock.
UPDATE: A few more details from the backstory of this disgrace.