Attorney General's News Release

December 16, 1994

Nixon announces antitrust agreement to promote health-care competition

Jefferson City, Mo. — Attorney General Jay Nixon announced today an out-of-court agreement with the parent company of Springfield’s largest hospital, St. John’s Regional Health Center, to promote health-care competition in southwest Missouri. The agreement addresses Nixon’s concerns that the hiring of physicians and acquisition of physician practices in the Springfield area could reduce competition in some physician specialties. As Attorney General, Nixon is authorized to preserve competition through the enforcement of federal and state antitrust laws.

“This is a time of tremendous change in the health-care community,” Nixon said. “Integrating providers into large health-care delivery systems may result in cost savings. However, we must preserve free and open competition if Missourians are to benefit from these changes.”

The out-of-court agreement will restrict for three years the hiring of physicians in nine specialties who practice in defined service regions of southwest Missouri. The nine specialties covered by the agreement are pediatrics, obstetrics/gynecology, gastroenterology, dermatology, urology, otolarynology, invasive cardiology, oncology/hematology and thoracic surgery.

Nixon said the restrictions will apply to each specialty as long as the parent company, Sisters of Mercy Health System - St. Louis, employs 40 percent or more of the physicians who practice in the specialty in the defined service region. The restrictions will not affect the hiring of physicians from outside southwest Missouri to work in the region.

In addition, for the next three years the parent company has agreed under certain circumstances not to enforce contractual limitations on the ability of the physicians it employs in the nine specialties to practice in any location in southwest Missouri after leaving employment with the health system. The agreement with Nixon also provides that physicians in the nine covered specialties will not have their admitting privileges and access to hospital services at St. John’s restricted because they are not employed by Sisters of Mercy Health System.

St. John’s parent company will pay $30,000 to defray expenses incurred by the Attorney General’s Office in monitoring the agreement.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818