Attorney General's News Release

January 7, 1999

Attorney General Nixon announces opposition to current proposed merger between two Cape Girardeau hospitals

Cape Girardeau, Mo. — Attorney General Jay Nixon today announced his office is opposed to the current proposed merger between Cape Girardeau's two hospitals, Southeast Missouri Hospital and St. Francis Medical Center.

"There is not sufficient protection of choice for consumers, employers and physicians in the proposed plan," Nixon said. "The community commitment in this proposal is inadequate, and the one entity to emerge from this merger would not provide the competition for prices and services that two active hospitals can provide.

"At a time when health care choices are dwindling, we need to work hard to preserve choice in health care, and the Attorney General's Office must be the agency that stands up for choice in health care," Nixon said. "After months of review and consideration, including receiving many comments at an extensive public hearing in September and in letters and interviews afterward, I have concluded that my office is opposed to this merger as it is proposed."

Nixon met earlier today in Cape Girardeau with representatives of a citizens' group, of a consortium of employers in the region, and of a large network of physicians. Those groups restated their opposition to the merger.

He said the comments solicited by his office over the past four months also were solidly against the merger proposal.

"These two not-for-profit hospitals historically have had a long-term commitment to the community," Nixon said. "They have much broader missions than just making money, and they've used their funds for good purposes in the community in the past. The hospitals were unable to show that merging -- and thus eliminating consumer choice -- was the only way to continue those efforts. It is important to note, however, that we're not foreclosing these two hospitals from cooperating to provide new services to consumers."

The Attorney General's Office reviews proposed hospital mergers and acquisitions to determine if the transaction would have an anti-competitive impact on consumers in a health care market. In reviewing past proposed hospital transactions around the state, the office has approved some and successfully litigated to stop others.

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