JEFFERSON CITY — A Senate bill heard Wednesday could allow MU Health Care to own and help operate medical facilities in rural areas of Missouri.
Senate Bill 1602 is sponsored by Sen. Kurtis Gregory, R-Marshall. It echoes House Bill 3170, which passed through two House committees but currently is not on a House calendar for consideration.
Gregory’s bill would exempt MU Health Care from antitrust laws and authorize it to purchase, sell, lease or be otherwise involved in the ownership of hospitals and health care facilities in 25 counties in mid-Missouri.
Gregory said at the hearing before the Senate General Laws Committee that he filed the bill in response to the growing crisis facing hospitals across Missouri. He said 20 hospitals have closed over the past decade with 10 of them in rural areas.
“Nearly half of Missouri’s remaining rural hospitals are now financially vulnerable, and many are actively seeking partners to maintain access to care,” Gregory said.
Opposition to the bill came from concerns about MU Health Care’s potential antitrust immunity and lack of choice in health care providers across the state.
“When a hospital in central Missouri (struggles financially, they) can hopefully partner with Mizzou Health Care, be acquired by private equity or close altogether,” Gregory said. “The last of which is an option that is not gonna be the best at all … because the more that close down, the further you are from having access to care at critical moments.”
Jorgen Schlemeier, representing the Jefferson City Medical Group, applauded MU Health Care for wanting to help keep health care in rural areas but spoke against the bill because it includes Boone and Cole counties.
“Boone County and Cole County currently have multiple hospital systems operating in them, and we believe it is critical for multiple hospitals to thrive,” Schlemeier said. “I believe that the legislation exempting them from antitrust is somewhat more narrowly tailored to Cole and Boone County, with the other 23 counties somewhat as window dressing.”
CEO of MU Health Care Ric Ransom argued the Missouri health care system is already facing limited choices without a monopoly.
“As you look at choice, access, cost increases, the reasons that have nothing to do with a legislative monopoly, there’s less choice in central Missouri,” he said. “There are challenges with access, and costs have increased.”
Bill Hellebusch, CEO of Hermann Area District Hospital, agreed with Ransom and said that the hospital is constantly looking for good partners to help serve the area.
Hellebusch said that over the past three years, MU Health Care has provided 24/7 emergency care to Hermann Area District Hospital and has been critical to operations. He said that on one instance, MU Health Care helped assist with a trolley incident that caused 34 injuries.
“Honestly, without that level of support, I’m not sure how we would have treated and taken care of all those patients that came through our doors that day,” he said.
Lisa Leathers, president of the Missouri Ambulatory Surgery Center Association, opposed the bill because of potential side effects that would affect surgery centers.
She said that Missouri surgery centers are required to have a standing transfer agreement with a nearby hospital or for each operator at the center to have admitting privilege, but the regulations don’t require a hospital to honor them.
“If this bill passes, specifically with its provisions for antitrust immunity, surgery centers in mid-Missouri would become entirely dependent upon the goodwill of a single entity, MU Health Care, to keep their doors open,” she said.