Attorney General's News Release

December 13, 2004

Nixon preserves $5.4 million annually in community benefit and charity care in sale of two St. Louis hospitals

St. Louis, Mo. —Attorney General Jay Nixon announced today that more than $5 million for charity care and community benefit provided annually by two St. Louis hospitals will continue even after the expected sale of those hospitals later this month.

Argilla Healthcare Inc. officials have signed an agreement to continue providing at least $5.4 million yearly in community benefits after Argilla purchases Forest Park Hospital and both campuses of St. Alexius Hospital from Tenet. This marks the first time in Missouri that a community benefit obligation, enforceable by the Attorney General, has been a part of a hospital sale from a for-profit company to another for-profit.

When Tenet acquired Forest Park Hospital in 1997 and St. Alexius Hospital in 2001 from non-profit entities, Nixon obtained agreements that obligated Tenet to provide at least $5.4 million in community benefits each year.

"Just because Tenet, a for-profit, is now selling these former non-profit hospitals doesn't mean the requirement to provide non-profit benefits should die," Nixon says. "The agreement with Argilla ensures that millions of dollars in community benefit and charity care, which is the legacy of these original non-profit hospitals, will continue to be delivered to the St. Louis area."

The Attorney General acts as the steward for non-profit assets in the state of Missouri. Nixon has provided oversight of several acquisitions of non-profit hospitals by for-profit corporations in Missouri in the past several years. In each case, Nixon has required the for-profit entity to continue providing specific levels of community benefit and charity care.

The purchase of the Forest Park and St. Alexius hospitals differed in that both the buyer and the seller are for-profit. Nixon says the cooperation of both Argilla and Tenet was integral to ensuring that the obligation to continue charity care continued.

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.

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