Attorney General's News Release

April 12, 1995

$300,000 court order against hospital, physicians' group will promote health-care competition, Nixon says

Jefferson City, Mo. — After a yearlong investigation by the Attorney General's Office, a Poplar Bluff hospital and physicians partnership have agreed to a permanent restraining order to resolve allegations they engaged in unfair and anticompetitive business practices to dominate the health care market in the Butler County area, Attorney General Jay Nixon announced today.

Doctors Regional Medical Center and the partners of the Kneibert Clinic also will pay a total of $300,000 to the state of Missouri and two not-for-profit health-care organizations as part of the consent judgment and permanent restraining order signed this morning by Cole County Circuit Judge Thomas Brown.

Under the terms of the court order, the hospital and physicians agreed to refrain from forcing or unfairly influencing patients to obtain prescription drugs, home oxygen and other medical equipment and services from businesses owned by the group or hospital. The group and hospital also agreed not to force or unfairly influence nursing home administrators or staff to use their ancillary medical services in exchange for nursing home referrals.

“Because patients place such a great deal of trust in their doctors, the relationship between physician and patient should not be exploited for personal gain,” Nixon said. “Physicians who take advantage of their patients in this manner unfairly limit access for competitors and limit the choices for health-care consumers, particularly the elderly and indigent. We must preserve free and open competition if Missourians are to have real health-care choices.”

Nixon said his office investigated allegations that physicians and staff unfairly influenced or forced patients to purchase prescription drugs, home oxygen and durable medical equipment such as wheelchairs and hospital beds from physician- and hospital-owned businesses in an attempt to exclude competitors from access to those consumers.

Nixon also alleged that the hospital entered into agreements with nursing homes in the Poplar Bluff area that tied referrals to the nursing homes to the purchase of hospital lab services.

Under state and federal antitrust laws, the Attorney General is authorized to take legal action to prevent unreasonable restraints of trade. Under Missouri merchandising practices law, the Attorney General also is authorized to restrain unfair business practices.

Kneibert Clinic physicians and Doctors Regional Medical Center are required to provide their patients with a written notice telling them that they have the right to purchase any and all prescribed health care services from the vendor of their choice. For patients needing lab services, home oxygen, home IV therapy services and durable medical equipment, this notice will include a comprehensive list of the area businesses that provide such services.

The Kneibert Clinic partners and the hospital have paid a total of $200,000 to the state of Missouri under the consent judgment. The partners and the hospital also will pay a total of $75,000 to the Institute for Community Health Education, a not-for-profit corporation that provides health-care education to southeastern Missouri consumers. Doctors Regional Medical Center also will pay $25,000 to the Division of Nursing and Allied Health of Three Rivers Community College in Poplar Bluff.

“Directing the contributions to these two southeast Missouri health organizations is important in this case, because the money will benefit those very consumers who were harmed the most by anticompetitive practices,” Nixon said.

Under the terms of the consent judgment, the hospital and the physicians partnership do not admit liability for the allegations.

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