SOUTHEAST OFFICIALS REACT TO COLLAPSE OF MERGER PLAN

Two members of the Southeast Missouri Hospital Board of Trustees Executive Committee expressed disappointment following the decision by St. Francis Medical Center's leadership to withdraw from merger talks.

"The only thing I can say right now is that I'm disappointed," said Rob Erlbacher, executive committee president.

A complete statement regarding the situation and Southeast's future plans will be made after a meeting of the full executive committee Tuesday.

Considering St. Francis' position, Erlbacher said, "there is not any decision to make" on Southeast's end concerning a merger.

The St. Francis Board of Directors voted unanimously to break off the merger in the wake of a Thursday announcement by Missouri Attorney General Jay Nixon that he opposes the union. Nixon promised to file a lawsuit if the hospitals pushed forward with their proposal.

St. Francis officials met with Erlbacher and fellow Southeast executive committee member David Hahs Friday afternoon and informed them of their decision.

"I was disappointed that there appears to be a stoppage of the merger efforts," Hahs said. "I'm very sorry to see that happen, regardless of why."

Nixon, in a surprise press conference at his local office Thursday afternoon, concluded that a merger between Cape Girardeau's only two hospitals would harm competition in the local health-care market.

The attorney general's office reviews proposed hospital mergers and acquisitions to determine if the transactions would have an anti-competitive impact.

Hahs, who had been heavily involved with the merger talks over the past 14 months, disagrees with Nixon's assessment.

"I think the long-term position of (health-care) consumers in the area is weakened by the cessation of the merger option," Hahs said.

Supporters have maintained that a merger would make the two operations more efficient and allow them to combine their financial strength to prevent one or both facilities from being taken over by out-of-town interests.

Both hospitals are not-for-profit organizations and are locally controlled.

St. Francis president and chief executive officer Jim Sexton has acknowledged that his hospital may be forced to seek an outside affiliation in the future.

Despite Nixon's threat of legal action, Hahs believed the merger should have moved forward.

"I still felt it was a viable option," Hahs said. "It would have been difficult, but I still believe it was the correct thing to do, and I stand by that decision."

Though the merger has, at least for the foreseeable future, fallen through, Hahs said St. Francis and Southeast should continue to work together to provide new services.

"As a board member for Southeast Hospital, I'm convinced that future cooperation between the hospitals is essential for the community and will do whatever I can to be a part of that in whatever form that may take," Hahs said.