St. Louis Post-Dispatch from St. Louis, Missouri • Page A004

A4 ST. LOUIS POST-DISPATCH 1 SATURDAY 05.05.2012 MERCY FROM Al Mercy plans to sell Arkansas hospital to for-profit system, sparking resignation of board members, concerns over health care for poor DETAIL AREA Hot Springs ARKANSAS 10 MILES Post-Dispatch merger of two nonprofit hospitals St. Anthony's and Rock-ford Memorial would result in less competition and increase the cost of care in the city. St. Joseph's has purchased several private medical practices in the Hot Springs area in recent years, leading to speculation among locals that the Mercy affiliate may have taken on too much debt.

Britton called the decision to sell the hospital "a unanimous decision of the board," but he acknowledged that the issue sparked the resignation of Jackson from Mercy's board in Chesterfield. Jackson, who lives in Hot Springs and runs Oaklawn Park racetrack there, was unavailable for comment. The controversy has also drawn the attention of Bishop Anthony Taylor of Little Rock, whose diocese has declared that it has "serious reservations" about the merger. Britton said that Mercy will hold additional meetings with the bishop to resolve his concerns about the merger's impact on the poor. Mercy considers itself a "corporation within the Catholic Church," and thus Vatican approval is needed on key decisions affecting the health system.

"We will make the case to them why this is the right thing," Britton said. "They understand the pressures and challenges While it may not be Catholic, it can still be a force for the good." of layoffs. Others worry that it will mean higher health costs for retirees on fixed incomes and also result in less health care for the poor in surrounding rural areas. Mercy's decision to sell its hospital has also confounded Hot Springs physicians, foundation board members and even a Roman Catholic bishop. Complicating matters, the merger comes at a time when federal regulators are cracking down on hospital monopolies.

"We're all still shellshocked," said Larry Levi, who resigned in protest last week after serving 10 years on the board of St. Joseph's Mercy Health Foundation in Hot Springs. "The Sisters of Mercy have been in the Hot Springs area for 130 years, and for Mercy to drop a bomb like this is unbelievable." Levi also said that Hot Springs residents are surprised that Mercy chose to sell the hospital to a for-profit hospital chain. "As we all know, a for-profit institution is an entirely different animal." Dr. Jack Porter, who resigned from the St.

Joseph's Mercy Health System board because he is actively opposing the sale, described how local board members were summoned recently to an emergency meeting with Lynn Britton, Mercy's chief executive. "Lynn Britton said we've decided this is best for your community," Porter recalled. "I thought that was interesting the thought of selling their hospital," Britton said. "We still believe that a single provider, given the size of the city, is best. We frankly can't be the solution every single time in a community." Mercy executives further defended the sale in a printed handout to St.

Joseph's employees, explaining that "increasing competition from Little Rock providers, decreasing reimburse -ment for services, and increasing charity care and bad debt expense have made it virtually impossible for us to be operationally successful." Britton added that Mercy would continue to invest in local charities in Hot Springs. With annual revenue of nearly $4 billion, Mercy operates about 30 hospitals in four states including Missouri, Oklahoma, Arkansas and Kansas. Mercy has investments totaling about $1.5 billion. A 2011 bond rating report by Moody's Investors Service Inc. indicates that Mercy hospitals in Hot Springs and Fort Smith, "have been a drag on system performance in recent years." St.

Joseph's was founded as an infirmary by two nuns who arrived from Little Rock in 1888. The infirmary burned down and was replaced with a hospital in 1927. The hospital opened a coronary care unit in i960, the first of its kind in Arkansas. Today, the 282-bed hospital maintains the only Level II trauma center in southwest Arkansas. It has 24 clinic locations and more than 80 physicians in the Hot Springs area.

St. Joseph's reported total operating revenue of $225 million in fiscal year 2011 and provided $7.8 million in traditional charity care. It is one of Hot Springs' largest employers, with about 2,124 employees and 145 affiliated physicians. Capella Healthcare owns the smaller, 166-bed National Park Medical Center in Hot Springs. Capella, which operates 13 hospitals mainly in the south central portions of the United States, generated $684 million in revenue in 2011 but claimed a loss of $14.5 million.

Hudgens and other critics question Capella's fiscal viability and long-term commitment to Hot Springs. They say the proposed merger would establish Capella as a monopoly and result in higher health care costs. Britton said the Federal Trade Commission should consider the greater Little Rock area, which has several hospitals, when assessing the Hot Springs hospital market. "These two hospitals represent a tiny percentage of the market," he said. The FTC has scrutinized deals that may create local health care monopolies.

Last month, the FTC won a victory when a federal judge temporarily halted the merger of two hospitals in Rockford, 111. The FTC had argued that the since they didn't consult our community." That view was echoed by others in Hot Springs. "When you're mission-based, your focus should be on the mission, not the buck," said Brad Hudgens, a financial consultant who lives in Hot Springs. In a guest editorial published in the Sentinel-Record, Hot Springs' daily newspaper, Hudgens urged Mercy to consider if it must sell the hospital selling it to "another faith-based, nonprofit buyer." Britton told the Post-Dispatch that Mercy and Capella have discussed in the past few years "what might be a good solution for Hot Springs," and the dialogue intensified in recent months. Mercy also had discussions with faith-based health systems, he said, but being acquired by a nonprofit system "would not have solved the issue" that the Hot Springs area can no longer sustain two hospitals.

"Capella wouldn't entertain JOHNNY ANDREWS Lawrence Coldon (center) along with Kaylee Neutzling (left), a senior at the University of Missouri-St. Louis, search in March for clues to the disappearance of his daughter, Phoenix Coldon, in East St. Louis. The Coldons estimate they have spent about $50,000 for a private investigator to help in the disappearance. Last month, the Coldons' mortgage company called to say that their Spanish Lake house had fallen into foreclosure.

MISSING FROM Al Spanish Lake couple, frustrated by lack of clues, media coverage, have exhausted their savings in search for missing daughter ary from California that Goldia Coldon answered in the middle of the night that she swears was from her daughter. Police there say it was a kid playing a prank. So far, Goldia Coldon estimates, she and her husband have spent about $50,000 for the investigator, including billable hours and expenses. Last month, the Coldons' mortgage company called to say that their house had fallen into foreclosure. Lawrence Coldon says the ordeal has weighed heavily on his wife, who has been dealing with some health issues.

He thinks her ailments have been brought on by stress. Every time they leave home, the couple take fliers adorned with the face of their missing daughter to hand out. Local residents and churches have organized events to help raise money. In the meantime, the Coldons have set up Phoenix Coldon's Christmas gifts in her room. "We want it to be a surprise for her," she said.

And the tree in the front room remains. She hopes it'll still be there when her baby comes home. and longing to fit in wherever she went. On Dec. 18, after Phoenix Coldon attended church in the early afternoon, Goldia Coldon saw her daughter go outside and sit in her truck.

She said her daughter would often sit in the truck and make phone calls, which she thought was strange, but she never read much into it. Lawrence Coldon, 67, a retired computer systems engineer, said he saw Phoenix leave around 2:20 p.m. "I thought she was going to this little convenience store around the corner or to a friend's house," he said. Worry set in later that night. "At midnight, my wife said something was wrong," Lawrence Coldon recalled.

"It was kind of out of character for Phoenix to go out without telling us." The Coldons spent the next day calling friends and relatives and hospitals. When nothing proved helpful, they called police. St. Louis County authorities plugged the license plate of Phoenix Coldon's 1998 black Chevy Blazer into a database to see if it had been impounded likely after an accident but discovered nothing. It wasn't until Jan.

2 that a rela tive found the truck at an East St. Louis tow yard. According to an investigative report filed by East St. Louis Police Officer Kendall Perry, the Blazer had been abandoned in the middle of the 900 block of St. Clair Avenue at 5:27 p.m.

on Dec. 18. "After making sure that the vehicle was not stolen, I advised the dispatcher to contact the tow company in reference to towing the vehicle," Perry wrote. The Coldons say they have never been contacted by East St. Louis police.

"We would've had a two -week head start if we'd known where the car was," Lawrence Coldon said. East St. Louis police officials did not return calls seeking comment. While the Coldons couldn't locate their daughter, the days and weeks after her disappearance led to other discoveries. When Phoenix Coldon moved out at 18, she had told her parents she was going to live with a girlfriend.

Goldia Coldon even signed the lease. But since she has been missing, her parents have learned she was staying in the apartment with a boyfriend until moving back home last year. Unbeknownst to them, Phoenix Coldon also had not enrolled in fall classes at the University of Missouri-St. Louis, where she is classified as a junior. The Coldons say they have not been in touch with the boyfriend since her disappearance, but they know he is still in the area.

They have reached out, Goldia Coldon said, but received no response. The Post-Dispatch also could not reach him for comment. St. Louis County Detective Robert Vogel said the boyfriend is not currently considered a sus -pect in Phoenix Coldon's disappearance. Goldia Coldon said she's unclear on whether Phoenix Coldon was still dating the man, who's in his mid-20s.

She doesn't believe he had anything to do with her daughter's disappearance, but she fears his influence may have gotten her involved with the wrong people. SEARCH GOES ON Family members have searched the East St. Louis area without success. Phoenix Coldon's friends have been slow to help, her family says. And only a few news reports have featured the missing woman.

"We've had some coverage but not like Natalee Holloway did," said Goldia Coldon, referring to the Alabama teenager whose disappearance in Aruba in 2005 drew intense media coverage. St. Louis County Police Chief Tim Fitch said his officers are working the case, though few leads have come in. "We're absolutely concerned about her safety," he said. "Bottom line is she hasn't been found, and we're not going to stop looking for her." Goldia Coldon credits black and the Black and Missing Foundation, both of which seek public awareness in missing persons cases involving black people, for picking up the story and getting the attention of local and national media outlets.

They also brought in the leads she says are being pursued by a private investigator. The man, who refused to give his name because of the nature of his work, said by phone that he's continuing to look into every tip that is received. That included a tip from a man in Texas saying he knew where Phoenix Coldon could be found. Turns out the man may just have been trying to get attention, authorities told the Coldons. There also was a call in Janu.