JEFFERSON CITY, Mo. — Legislation from a local doctor could open up St. Joseph and other Missouri cities to more hospital competition.
State officials warn against the move, however.
Anyone in the hospital business wanting to set up shop in Missouri must endure a stringent application process with the state under a Certificate of Need program.
The same goes for long-term care facilities, such as nursing homes, and certain medical equipment, such as MRIs.
Rep. Dr. Rob Schaaf, R-St. Joseph, wants to take hospitals and medical equipment out of the equation.
“I’m just a believer in the free market and I don’t believe in central control,” Dr. Schaaf said.
The Certificate of Need Program was set up in 1980 to keep tabs on costs, enhance quality and increase access for certain health care services.
The program evaluates potential projects on community need through a review of multiple factors, such as existing hospital beds and occupancy levels.
Applicants also must provide financial plans to the Missouri Health Facilities Review Committee, of which St. Joseph’s Michael Meierhoffer became a member in 2007.
Heartland Health underwent the process in 1984 when Missouri Methodist and St. Joseph (commonly referred to as “Sisters”) hospitals merged, explained Mr. Meierhoffer, former chairman of Heartland’s board of trustees.
“It really gives the state of Missouri the ability to determine exactly the expenditures that are made in health care ... I think it is a vital factor for at least trying to keep costs under control,” he said.
Since the merger, no other hospital has applied to enter the St. Joseph market, state CON program director Tom Piper said.
Proponents of Dr. Schaaf’s effort argue the program hurts competition and is a failed policy planning tool that can create monopolies.
Dr. Schaaf pointed to high insurance costs as a result. He provided figures from the Missouri Department of Insurance, which reported Heartland’s HMO, Community Health Plan, as having the highest average monthly costs in the state in 2006 at $284.02. The second highest was $263.13 from Good Health HMO.
“It squashes competition and innovation. (Applicants) have to jump through gigantic, burdensome hoops,” Missouri State Medical Association lobbyist Tom Holloway said.
He cited failed efforts in St. Charles and Kansas City as a result of the program, noting 14 other states have repealed CON.
“There’s no credible evidence that prices have gone up there,” Mr. Holloway said. “What happens is people get less expensive care, faster and safer.”
Still, a slew of opponents have surfaced, including the Missouri Department of Health and Senior Services, Hospital Corporation of America and the Missouri Hospital Association, which represents Heartland.
Program materials state the program saves Missourians more than $149 in capital expenditures for every $1 spent to administer the program.
Mr. Piper contended CON provides necessary public oversight of a complicated health care system.
“Unlike McDonald’s or Ace Hardware, it is not a free market for health care,” the CON director said. “Physicians, not consumers make the decisions ... We don’t have consumers that have the ability to exercise competitve choices as in other markets.”
Dr. Schaaf’s HB 1806 already has gained approval from a health care transformation committee he chairs. House leaders are expected to call up the bill for formal floor debate by early April.
Alyson E. Raletz can be reached
at alysonraletz@npgco.com.
The certificate of need program is suppose to “keep tabs on costs, enhance quality and increase access for certain health care services”? Well then, how did Saint Joseph miss the boat on that one? Not only has Heartland been allowed to maintain a for-profit collections agency (Northwest Financial) for the purposes of harassing and abusing the citizens of this region, but they also install politician/employees to guarantee a political climate that promotes their monopoly. Congratulations to Dr. Schaaf for not “drinking the Heartland Cool-Aid”. I wonder what Charlie Shields (on the Heartland payroll) is going to do to kill this piece of legislation? Although other hospital systems have had State-approved certificates of need for Saint Joseph, Heartland has successfully blocked anyone else coming to town. Although the U.S. Department of Health and Human Services lists Saint Joseph, MO as an medically underserved community, Heartland is still able to squeeze private providers out of business and maintain a strangle hold on health care service provision in this town. I hope for the sake of my children that someday Heartland is forced to stop advertising their “made-up” service awards, made to provide service to the under-privileged in this town as a county hospital is required (instead of turning them away from appointments because of unpaid bills – I’ve watched it happen!), and finally step aside for a health care system willing to be an honest steward to this community. God Bless Dr. Schaaf!
Posted by mcresej on March 13, 2008 at 10:13 a.m. (Suggest removal)Chris...............you NAILED it!
Posted by apmastrangelo on March 13, 2008 at 10:42 a.m. (Suggest removal)Well stated Chris011 - a monopoly in any business is bad for the consumer and when associated to health care it is an absolute disaster for many reasons. While I know there are many dedicated individuals wanting to provide quality care within Heartland, in reality the claim that the organization is doing so on a non-profit basis is deceptive and a political ploy.
Posted by heritage on March 13, 2008 at 2:08 p.m. (Suggest removal)Saint Joseph, communities across Missouri, and the nation, must hold their elected officials accountable for their involvement in how it limits and regulates the health care industry, including potential conflicts of interest. If we as consumers and communities fail to do so we will pay the price by the suppression of competition and ultimately the lack of choice. Yes, thank God for Dr. Schaaf all those willing to take a stand on this critical issue.
wow, chris, funny you should mention the issue of NW financial. i just accidently sat in on a session in division #5 and it was a huge eye opener. STACKS of suits against citizens on behalf of heartland!!!!! i must give a big kudo to judge marquart. in most of these instances, the reading is very much in favor of the plaintiff's position, because the court proseedings are not read into the record in their entirety. then, when the attorney for plaintiff goes forward with collection, there is only a record of the judgement for plaintiff>>> oftentimes, there are circumstances where large corporations ( won't name names) go forward with completely bogus assertions, or sell their records to other entities who go forward with completely unsubstantiated claims ( again won't name....). judge marquart took the time to protect the citizens of buchanan county from this circumstance. he is to be congratulated for his fine jurisprudence.
Posted by comment on March 13, 2008 at 2:21 p.m. (Suggest removal)I'll fourth all the above. Good for Dr. Schaaf and I'll believe it when I see it.
Posted by HRMC_Fan on March 13, 2008 at 2:23 p.m. (Suggest removal)Funny how easy it is for the Heartland-haters to make comments that can't be backed up by facts. Who's drinking the kool-aid now?
"Since the merger, no other hospital has applied to enter the St. Joseph market, state CON program director Tom Piper said."
How is Heartland keeping people from applying to come into St. Joseph? State Senators cannot stop hospitals from applying. Could it be that no other hospital wants to come into the St. Joseph market? Stop with the conspiracy theories and realize that the St. Joseph market is not large enough to support two hospitals.
Schaaf hates Heartland and wants to see the organization go under. That would leave 3,000 people unemployed and stop more than $170 million dollars from being put back into the local community. Those are the things that Schaaf will provide the city of St. Joseph if his bill passes. Wake up, people!
Posted by RH on March 13, 2008 at 3:34 p.m. (Suggest removal)Hey HRMC_fan--
Guessing you're a Heartland employee and have definitely drank the koolaid. No one would be unemployed, there would actually be more jobs and choices of employers other than fast food and you would all see how grossly UNDERPAID you all are when another hospital comes to town and pays you what you should be making. Do you know that almost 30% of people who check into Heartland check themselves out to go to other hospitals in the KC area?
Posted by HRMC_Fan on March 13, 2008 at 4:01 p.m. (Suggest removal)If Heartland wasn't so afraid of competition,etc there wouldn't be the "Heartland owned" docs. Those who do not comply are blackballed...don't believe it, just ask some of the fine doctors who fall into this category. Look at the salary comparison the City just ran if you do not think people in St. Joseph as a whole are underpaid. Competition would mean Heartland and others would have to pay the hard working citizens what they are actually worth, not what these companies want to make you think you are worth. This is one of the very reasons I left working at Heartland...I work in KC, do the same work and make 3 times what I made @ Heartland. The cost of living in KC is not 3 times or even 2 times what it is in St. Joe. Wake up! Competition is good for everyone and makes people step up to the plate and provide a truly competitive and liveable wage.
Hey, RH, I appreciate your polly-anna prognostication on how wonderful life would be with another hospital in town. Did your crystal ball also tell you why no other hospital has applied to come into St. Joseph? Did it tell you how two (or more) hospitals would share the number of insured patients and still make any kind of profit to purchase state-of-the-art medical equipment and hire new workers?
Doctors aren't black-balled at Heartland if they aren't on the payroll. Many non-Heartland doctors enjoy privileges at Heartland... including Dr. Schaaf. Try again.
I like how you bring up that 30% of people check themselves out of Heartland to go to KC. That means 70% stay here and receive exemplary care. That's not bad turnover.
Competition is great if you want your choice of pharmacies or restaurants, but health care is determined by skilled physicians, nurses and other clinical folks. I believe the health care industry should be held to a higher standard than Starbucks or Olive Garden.
MMMMmmm... Fruit Punch! Oh, yeah! :)
Posted by heritage on March 13, 2008 at 4:41 p.m.This comment was removed by the site staff.
Posted by HRMC_Fan on March 13, 2008 at 5:03 p.m. (Suggest removal)Good to see you too, heritage. You know I can't resist the temptation to disrupt an echo chamber. : )
I just saw a bumper sticker on my way back to work. It read, "Don't worry what others think. They don't do it very often."
Sums it up nicely.
Posted by apmastrangelo on March 13, 2008 at 5:14 p.m. (Suggest removal)HRMC_Fan - Always good to see loyal employees but the information I have heard does not support the position of Heartland as a stellar provider or being in favor of added competition. Ever wonder why the grand facility on Faraon was really torn down?
Posted by heritage on March 13, 2008 at 6:36 p.m. (Suggest removal)I have knowledge of a location with a Tri-city population less than that of Saint Joseph, where a second hospital came in to the immediate area. Not only are both facilities doing fine but the communities have seen a marked increase in the number of doctors and a sudden desire to improve on providing the highest level of service. No surprise in my view as to why.
Also a disapproval rating of 30% does not translate into a healthy profile since those lost either do not, or seldom, return. As the pattern continues the client base eventually deteriorates and we all know what happens at that time.
fan, i don't think denigrating other persons and being sarcastic is exactly going to advance your crusade. for the record, i have never gone on a tirade against heartland. i choose to go to kcu for my more complicated medical care, on the advice of several physicians in the area, and my physicians in our former hometown. do please try to be civil, so that others will continue to be so. a little smiley face doesn't make the "medicine" go down any more pleasantly.
Posted by HRMC_Fan on March 14, 2008 at 8:47 a.m. (Suggest removal)apmastrangelo - I appreciate your comments. I know exactly why the downtown buildings were torn down. They were outdated and quickly becoming condemnable without millions in reconstruction. Some people say that there was a hospital that had planned to buy the building, but Heartland tore it down so they couldn't have it. According to this article, no other hospital has even applied to come into the St. Joseph market. People can't have it both ways.
St. Joseph used to have two hospitals and they almost ran each other into the ground. The competition between Sisters and Methodist created sub-standard care since neither hospital could afford to purchase new equipment to keep up with the other one. Eventually, one of the hospitals would have had to close. The insured vs. Medicaid/Medicare mix in this area is too skewed to support two hospitals. That's why other hospitals haven't even applied to open a new hospital here.
Don't worry, Lukes and KUMed will continue to bypass CON and keep sending specialty services into town, i.e. heart centers, imaging centers, surgery centers, etc. There are plenty of choices in town for non-Heartland health care.
Posted by HRMC_Fan on March 14, 2008 at 8:57 a.m. (Suggest removal)heritage - I think smileys always make the medicine go down more pleasantly. : )
My "tone" will follow the tone that has been set forth by those who choose to debate me. I don't believe I have denigrated anyone. My sarcasm is how I respond to people who are sarcastic toward me.
BTW, I agree that you have not gone on a "tirade" about Heartland. Your responses are much more subtle in their causticity toward Heartland. Civility will be met with civility. So far I don't believe I have stepped over any boundaries. I'm sure the admins here would let me know if I misbehave. ; )
Posted by RH on March 14, 2008 at 10:33 a.m. (Suggest removal)Yes, I can see where another hospital in the mix these days would be horrible. Afterall, Heartland only made 90 million dollars last year. That's right profit of 90 million. How would everyone survive if they only made 45 million a year??? There are plenty of pockets of hospitals in Kansas City with a service area similar to Heartland's and there are 2-3 hospitals in those service areas who are able to provide a high level of care, purchase the latest and greatest equipment and make a profit. There are also plenty of not for profit hospitals that do not sacrifice care and have top notch facilities and equipment.
Posted by apmastrangelo on March 14, 2008 at 11:11 a.m. (Suggest removal)I'm not a Pollyanna, I'm a realist. A two hospital system in St. Joseph 25 years ago is quite different then today with advances that exist now and the ability to control costs. Heartland's and CHP's are extremely high and they do not provide higher quality healthcare than others in the area. Statistics prove it. Competition is good at all levels and your remark about it being fine at only place such as Starbucks or Olive Garden is a slap in the face to intelligent people who do not need to be told Heartland is the end all be all. I am quite aware of how the quality of healthcare is determined..in case you cannot pay attention to all the details of my email, I work within the system of healthcare and am well aware of what type of profits Heartland is making. Your superior attitude is hilarious to me...
HRMC_Fan - Your comparison with Sisters & Methodist took place at a much different time in both business structures and more specifically medical technology. The argument that the downtown facilities were becoming quickly condemnable might have greater merit if it were not for the mega dollars put into them by Heartland in the years proceeding their move which, could otherwise have taken place.
Posted by HRMC_Fan on March 14, 2008 at 1:03 p.m. (Suggest removal)Bottom line, I believe Heartland has many dedicated people committed to their profession as related to health care and do NOT think that Heartland is some terrible monster. That said, I do take exception to their business tactics when, as a "non-profit organization", they do not best serve the interests of the community.
RH - Heartland also gave away more than $29 million in charity care last year. The $90 million you mention, which I have to take your word on, is being placed back into the community through state-of-the-art imaging systems, high-quality physicians that go out into the community hospitals and hold clinics, superior quality control measures that compare favorably in the region and nationally, etc. etc. I could go on, but you don't want to hear it.
The KC hospitals have more insured patients than Heartland receives. Since you work within the health care system you should understand payor mixes and how the St. Joseph community is very different than KC. At any given time Heartland has about 50 insured patients. If another hospital came into town, they would have to share those 50 patients with Heartland. Eventually, one of the hospitals would have to declare bankruptcy because their payor mix could not sustain a high level of quality equipment and staff. There's a reason that no other hospital is in town. They know they could not sustain their care in this community.
The only superior attitude on this comment area are the Heartland haters who believe their OPINION is fact and anyone who digresses from the hating should be silenced by derision and mockery. Way to tow the line.
Posted by chris011 on March 14, 2008 at 1:17 p.m.This comment was removed by the site staff.
Posted by HRMC_Fan on March 14, 2008 at 1:18 p.m. (Suggest removal)apmastrangelo - I appreciate your willingness to concede that Heartland isn't a pariah on the community. I agree that Heartland has many extremely dedicated and highly skilled employees. I have stated on another board that I do not believe Heartland is perfect. I think, like any large company, they have issues that need to be addressed. I believe it is the responsibility of the community to question the motives of Heartland in a respectful way to make sure they stay on the straight and narrow. I have personally taken Heartland to task for events that I did not agree with concerning personal care or family care at their facilities. I may be a fan of HRMC, but I'm not a zealot. : )
With that said, I think Heartland tries very hard to be a good steward of the community. Sometimes they seem like some behemoth that only cares about the bottom line, and at times it's important to watch the bottom line, but in the end the people that work at Heartland are only concerned with providing high quality care and taking care of patients and visitors. You may disagree with the administrative side of Heartland, but never question the motives of the rank and file staff members that make up HRMC and Heartland Clinic. Our community makes up HRMC and when people jump on the Heartland Hate wagon they are dissing many of my family members and best friends. That may correlate directly with my snarky attitude at times.
Posted by HRMC_Fan on March 14, 2008 at 1:38 p.m. (Suggest removal)chris011 - Nice rant there, chris. It's not original, but it was snazzy.
Why do I have to be a Heartland shill? Can't I be a simple member of the St. Joseph community that does not hate Heartland so vehemently as the rest of you people?
I find it highly insulting to those in the community that work at Heartland that some of you people can so blithely disregard their hard work and dedication that they provide every day at HRMC to earn state and national awards and recognition for their efforts. HRMC staff work diligently to earn the respect of the community and you blow it off like they're part of an evil cabal intent on destroying this town. Shame on you!
Posted by chris011 on March 14, 2008 at 1:47 p.m. (Suggest removal)Why can’t you be a concerned citizen you ask? Because concerned citizens in this town are afraid when their loved ones have to seek care at Heartland. This is an organization that imposes fines and disciplinary actions against employees who speak out about the injustices that they witness. So why would you have to be a Heartland shill? You wouldn’t HAVE to be…but if you weren’t you are simply far too willing to sell out the health and wellbeing of your family and friends. Shame on me you say? Shame on you. You should want better for your community.
Posted by biggieroth on March 14, 2008 at 2:41 p.m. (Suggest removal)I am very happy that St. Lukes is only a 40 minute drive south.
My family has recieved care at HRMC as well as St. Lukes and the care at St. Lukes is lightyears ahead of HRMC. You can also tell the employees are much happier to come to work everyday, the nurses also look healthier, which always makes me feel better.
Posted by HRMC_Fan on March 14, 2008 at 3:53 p.m. (Suggest removal)It's been fun debating this topic, but I'm going to go home and play Guitar Hero with my kids. Have a safe St. Patrick's Day weekend! : )
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