============================================================ Health Options Digest April 13, 2002 Coalition for Health Options In Central Eugene-Springfield ============================================================ * EDITOR'S LETTER * CALENDAR 1.sn - Mon 4/15 - Springfield City Council * COMMENTARY 2.sn - Flood plain issue requires more study by council * MAJOR NEWS 3.sn - Flood plain topic of Monday meeting 4.rg - Springfield flood-plain rules draw fire 5.sn - City searches for road map on floodplain 6.rg - City reschedules annexation hearing 7.rg - Designation of flood plain issue delays hospital hearing 8.sn - Flood plain annexation requests postponed 9.rg - Hospital antitrust suit set for June 2003 10.sn - PeaceHealth moves to dismiss part of lawsuit * OTHER NEWS 11.rg - Business news team wins award for real estate series 12.rg - Workforce group looks at hospitals (Business Digest) 13.rg - Hospitals report overcrowded ERs * CONTACTS, OTHER LINKS, KEY, CREDITS ===================== EDITOR'S LETTER ==================== This Monday, the Springfield City Council will hold another work session on flood-plain issues, this time focusing on Glenwood and the Willamette River (#1, #3). Last Monday, the Springfield City Council public hearing on flood-plain issues drew 65 people and strongly opposing viewpoints (#4, #5) and prompted an editorial from The Springfield News (#2). Concerns about flooding also prompted Springfield to postpone a public hearing on the annexations being proposed by PeaceHealth and Arlie & Co. in the Gateway area (#6, #7, #8). The lawsuit by McKenzie-Willamette Hospital against PeaceHealth is scheduled to be heard in June 2003 by U.S. District Judge Michael Hogan (#9). As reported in The Register-Guard last week, PeaceHealth moved to dismiss part of the lawsuit (#10). Kudos to Joe Harwood, Susan Palmer and Christian Wihtol of The Register-Guard! They recently won a national business-reporting award from the Society of American Business Editors and Writers for their Sept. 11 stories about John Musumeci and Arlie & Co. (#11). As anticipated, the flood of news has returned with the springtime rains, but most citizens continue to sit on the banks, apparently content to watch the news drift by. Rob Zako, Editor (and Email List Manager) 343-5201 rzako@efn.org ======================== CALENDAR ======================== ------------------------------------------------------------ 1.sn - MON 4/15 - SPRINGFIELD CITY COUNCIL ------------------------------------------------------------ From The Springfield News MONDAY, APRIL 15 6 p.m. - Springfield City Council work session, Jesse Maine Room, City Hall, 225 Fifth St. Flood plain issues in Glenwood. 726-3700. 7 p.m. - Springfield City Council regular meeting, Council Meeting Room. Public hearing on Community Development Block Grant applications and Home Investment Partnership funding allocations; public hearing on amendments to the city development code adding mixed-use development districts and a nodal development overlay zoning district. 726-3700. (end) [Ed. Note: See also #3 below: "Flood plain topic of Monday meeting"] http://www.springfieldnews.com/news/calendar/contents.html Agenda: http://www.ci.springfield.or.us/CMO/2002Council/041502%20agenda.pdf ======================= COMMENTARY ======================= ------------------------------------------------------------ 2.sn - FLOOD PLAIN ISSUE REQUIRES MORE STUDY BY COUNCIL ------------------------------------------------------------ Editorial The Springfield News, 4/13/02 The Springfield City Council's deliberative approach on what to do about flood plain issues is understandable. It's an important issue that won't go away just because people want it to. Here's the problem: People who build in a flood plain must abide by guidelines established by the Federal Emergency Management Agency to qualify for federally subsidized flood insurance rates. Toward that end FEMA in 1985 mapped flood plains based on cross-section measurements taken at various points along the McKenzie and Willamette rivers. The maps supposedly indicate where and how far water in a 100-year flood will extend beyond the rivers. But in 1996, the area was hit with heavy rains that resulted in a so-called 30-year flood, and in some areas, the water rose higher than the FEMA maps indicated it would in a 100-year flood. A FEMA representative has told the City Council the maps were wrong. Springfield is no stranger to floods. Before several dams were built on both rivers, parts of Springfield were often under water. But the dams stopped much of the flooding -- except in 1964 when a 100-year flood filled several dams -- and it was possible for people to develop land that in earlier times had often been under water. Now the question before the council is whether to allow development to continue along the McKenzie -- especially in the area where PeaceHealth plans to build its new medical facility and in the Thurston area where more development is proposed. The would-be developers want the city to stick with its current flood plain standards based on the FEMA maps. Others who live nearby are concerned what development might do to their property. If the FEMA maps are wrong -- which they well may be -- some new development may find itself under water even though builders follow the guidelines. The FEMA representative said the agency may redo the maps (and then again, it may not -- you know how governmental agencies are), but the city can't wait. City staff has been instructed to assess the existing maps. For several years the city has been following the FEMA guidelines, and it shouldn't rush into changes without a solid basis to do so. But the situation is troubling, because it raises several questions. Could the city be held liable if flooding occurs? How will development affect neighboring properties? Water is a powerful force. A 100-year flood -- even a 30-year flood -- can cause considerable damage. Furthermore, floods can alter river channels, thus changing the water's flows. One would think the developers themselves would not want to build in harm's way and would want to take all possible precautions. That may mean constructing buildings higher than originally planned or making other changes. For the time being, the council should stick with its current guidelines, but the city should work as closely as possible with developers and neighbors to ensure that the river and humans co-exist in harmony. (end) http://www.springfieldnews.com/news/opinion/sn_opinion.html#TopOfPage http://www.springfieldnews.com/2002/news0413/opinion/sn_opinion.html#TopOfPage ======================= MAJOR NEWS ======================= ------------------------------------------------------------ 3.sn - FLOOD PLAIN TOPIC OF MONDAY MEETING ------------------------------------------------------------ The Springfield News, 4/13/02 After hearing from the community about flood plain concerns last Monday, city councilors will consider the issue again in a work session Monday night. Councilors will hear a presentation on flood plain issues involving Glenwood and the Willamette River. It will be the council's third work session on potential flood plain problems and it follows a public meeting at which more than 65 people attended and 26 testified. The first two sessions dealt mostly with the McKenzie River and brought out a claim by a federal hazard specialist that the official map that delineates the 100-year flood plain of the McKenzie River is inaccurate. According to a memo from city staff to city councilors, "there has not been a similar body of observed mapping discrepancies on the post-dam Willamette." According to the official map, which was developed by the Federal Emergency Management Agency, the 100-year flood plain of the Willamette includes about 58 acres of Glenwood. The council will also view two videos of the 1996 flood. Two Thurston residents delivered the videos to the city at last week's public meeting on flood plain issues. (end) http://www.springfieldnews.com/news/community/sn_community-01.htm#TopOfPage http://www.springfieldnews.com/2002/news0413/community/sn_community-01.htm#TopOfPage ------------------------------------------------------------ 4.rg - SPRINGFIELD FLOOD-PLAIN RULES DRAW FIRE ------------------------------------------------------------ By Matt Cooper The Register-Guard, 4/9/02, Page 1D Springfield -- The feedback was as plain as the river's edge: Developers on Monday urged the city to stick with current flood-plain development rules, while residents warned that the maps guiding that development are wrong. Almost 30 people took up the city's request to speak on the flood-plain code, which has confounded the City Council recently amid growing local and federal pressures. At the heart of the issue are maps drawn by the Federal Emergency Management Agency that regulate millions of dollars in flood-plain development. Residents say the maps aren't accurate and future flood-plain development could compromise the area's ability to absorb a flood -- thus threatening homes, if not lives. "I am not an expert, but I saw with my own eyes what the McKenzie River can do," said Anne Heinsoo, who lives in the Gateway area. "Please don't let economic advantages prevent you from considering thoroughly whether any development is (safe)." On the other bank are pro-business advocates such as Tom Costabile, senior vice president of operations for Springfield-based Sony Disc Manufacturing. New restrictions on flood-plain development, Costabile said, will restrict the ability of companies to provide family-wage jobs. Following 2-1/2 hours of testimony, Mayor Sid Leiken said that the flood-plain development code is sound, but the maps behind it may not be. By the end of the year, Leiken wants the city to rectify any errors in the maps so that the city's policy "can reconcile the differences between developers and the community." The council, which has been studying flood-plain development policy for years, began a series of refresher courses after reversing itself in February on a housing project in the Thurston area. The council initially opposed annexation of the 30-unit Eagles Flight subdivision in part because of confusion over the location of the flood plain there. Staff used the maps to determine that the Eagles Flight project would be beyond the reach of a potentially huge flood, but neighbors disagreed, citing watery experiences during the 1996 flood. Later in February, Leiken cast the deciding vote to reconsider the annexation, citing the council's need to learn more about its flood-plain development rules. Eric Gossler, speaking Monday for the Thurston Rural Neighborhood Association, said councilors must choose either to restrict future flood-plain development or provide bank protection. "If we're going to continue to develop in the flood plain, the city cannot turn a blind eye," he said. FEMA, which provides flood insurance only to those cities that observe its development regulations, has begun encouraging retention of the country's flood plains for flood management. Still, as cities continue to build out, developers are turning to whatever land is available -- and in Springfield, that includes land next to the McKenzie and Willamette rivers, which enclose the city north and south. Excluding Glenwood, for which numbers aren't available, there are about 218 buildable acres in the flood plain, compared with another 2,000 or so acres citywide, Planning Manager Greg Mott said. The most controversial project facing the city, in fact, borders the McKenzie River: PeaceHealth plans to build a $350 million hospital and surrounding commercial and residential parcels on 160 acres near Gateway. Philip Farrington, PeaceHealth director of land use planning, encouraged the city Monday to stick with the existing code, adding that PeaceHealth was also engaged in a flood-plain analysis. "We urge the city not to make changes in the middle of the stream," he said. Resident Fred Starkey drew the night's most raucous anti-development applause for warning the city not to place development above the risk to residents. "Their homes are in danger. Their lives are in danger," Starkey said. "And you want to shift the risk (to the residents). That's wrong." While councilors took no action Monday, their comments suggested support for analysis of the flood-plain maps -- in light of the city's continued growth. "I'm very pro-business," council President Lyle Hatfield said. "I'm not going to put the brakes on economic development. We are going to look at our data and find out if there is a problem that needs to be addressed." (end) http://www.registerguard.com/news/20020409/1d.cr.spfloodplain.0409.html ------------------------------------------------------------ 5.sn - CITY SEARCHES FOR ROAD MAP ON FLOODPLAIN ------------------------------------------------------------ By Tim Shinabarger The Springfield News, 4/10/02 Some recalled how high the water reached and said the official flood maps are wrong. Others said the city needs to continue its current policies for construction in the floodplain. More than 65 people turned out at City Hall Monday night to talk with the Springfield City Council about the 100-year floodplain and the potential for flood damage. Twenty-six people, most of whom live or work in the floodplain, addressed the issue. Most talked about flooding and development along the McKenzie River. A pattern appeared as testimony proceeded. Individuals who represent businesses that have developed in the floodplain or seek to develop it said the city should continue with current development standards. People whose homes might be affected by that development called for new flood maps and for caution in allowing new construction in the floodplain. Chris Pryor, chairman of the Springfield Chamber of Commerce's legislative affairs committee, said if the council plans to adopt new floodplain development standards, it should apply current standards until new ones are adopted. Philip Farrington, planner for PeaceHealth's proposed RiverBend hospital campus between Game Farm Road and the McKenzie River, said the council should only change its development standards "very cautiously." Larry Reed, development director for Arlie & Co., which owns two 12-acre parcels along International Way and Baldy View Lane, said any change in city policy or development standards should be based on science and engineering principles rather than on "someone's recollection, experience or opinion." Arlie purchased both its parcels in reliance on the current regulations, he said. "It would be a sad day to see Arlie & Co.'s new corporate office building or Sony's plant being reclaimed by the river because the city ... made blanket changes in policy and floodplain regulation based upon anecdotal information," Reed said. Dave Jewett, the attorney who represents John and Patricia Shama in their request to annex five acres near Cedar Creek into the city for their proposed Eagle's Flight subdivision, said the city reached its annexation standards after careful deliberation and it should follow them. "It's easy to apply consistent standards when there's no controversy," Jewett said. "It's only tough when there's controversy." Thurston resident Eric Gossler said rock revetments built along the McKenzie River in the 1950s and '60s are holding it where it is. Now those revetments are wearing thin. As the revetments "continue to fail," the river is going to "continue to migrate to the south, where the city lies," he said. Gossler said the issue has become urgent because the city is allowing dwellings, streets and other structures in critical floodplain areas. At the same time, city officials have indicated they don't want to repair the revetment, he said. "You can't have it both ways," he said. Larry Brabham said his family has owned land on Deadmond Ferry Road north of what is now the PeaceHealth property for 110 years. He said development has blocked natural flood channels in that area. Because International Way is at least 4 feet high, Brabham said, a big flood could inundate Sony Disc Manufacturing's property. The area where PeaceHealth is putting its new hospital used to be a blossom farm, he said. "After 1945, we had their whole bulb supply on our property," Brabham said. The McKenzie River makes an "S" turn around his land, Sony's land and PeaceHealth's property, he said. That is, until it floods. "And when it gets out of its banks, the 'S' turn is gone," Brabham said. "It just cuts right across." When the next flood does that, he said, it will hit International Way and back up. Anne Heinsoo, who lives in the Wayside Loop subdivision south of PeaceHealth's land, said she saw in 1996 what the McKenzie can do when the river channel "just can't do the job. The word, as we all know, is 'flood.' " Heinsoo said, "Please, don't let the supposed economic advantages of PeaceHealth's presence prevent you from considering thoroughly the scientific data which must be dealt with here before development of any kind is allowed." Thurston resident Michael Whitney said, "For 30 years, we have been telling you that the maps showing the floodplain are wrong." If city officials continue to allow construction in the floodplain when they don't have to, he said, "You have some liability." John Wellcome, whose property is east of Thurston, said, "What I've heard tonight is 'Don't rely on ad hoc evidence, rely on scientific evidence.' " Five years ago he did that when he bought his property based on evidence in the Federal Emergency Management Agency maps of the floodplain, he said. "In 1996, clutching that FEMA map in my hand, I waded through chest-deep water to get the tools out of the garage that was under construction," Wellcome said. After the testimony, City Councilor Fred Simmons said if the flood levels on the FEMA maps are wrong, "it affects not only Eagle's Flight, it will affect PeaceHealth and other development along the river." Council President Lyle Hatfield said the council has instructed city staff to look at the FEMA data to determine if it's wrong. "What we are going to do is look at our data, look at our code, look at our processes, and find out if -- and that's a big word -- find out if there is a process that needs to be addressed," Hatfield said. It's not totally the city's decision, because Lane County, the U.S. Army Corps of Engineers and FEMA are involved, he said. "We are searching, very much searching, for a road map to get us to some answers," Hatfield said. (end) http://springfieldnews.com/2002/news0410/frontpage/sn_frontpage-01.htm#TopOfPage ------------------------------------------------------------ 6.rg - CITY RESCHEDULES ANNEXATION HEARING (CITY/REGION DIGEST) ------------------------------------------------------------ The Register-Guard, 4/11/02, Page 3B Springfield -- A public hearing on an annexation request by PeaceHealth has been postponed while the city considers flood-plain development issues. The hearing, planned for next Monday night, was rescheduled for April 29 at the request of City Manager Mike Kelly with the agreement of PeaceHealth officials. In light of concerns expressed earlier this week about the accuracy of maps that designate the flood plain in Springfield, city staff wanted to make recommendations to the City Council for possible changes in flood-plain development policy, Kelly said. The council will consider the recommended changes at the April 29 work session, then hold a public hearing on the annexation request, he said. PeaceHealth, which plans to build a $350 million medical center near the McKenzie River in the Gateway area, wants the city to annex 59 acres contiguous to that site so a master plan can be developed for the entire 161.5-acre parcel. PeaceHealth wants the council's endorsement prior to a June 6 meeting of the Lane County Boundary Commission, which oversees annexations. (end) http://www.registerguard.com/news/20020411/3b.cr.digest.0411.html ------------------------------------------------------------ 7.rg - DESIGNATION OF FLOOD PLAIN ISSUE DELAYS HOSPITAL HEARING (SPRINGFIELD CITY BEAT) ------------------------------------------------------------ By Matt Cooper The Register-Guard, 4/13/02, Page 1B The only thing moving faster than the McKenzie River is the city's effort to deal with flood-plain development. After residents said Monday that maps designating the flood plain are wrong, the city postponed a hearing on its biggest project -- a 59-acre annexation request by PeaceHealth, part of plans for a new $350 million hospital near the McKenzie in Gateway. The request, which had been scheduled for this coming Monday, has been moved to April 29. That gives staff two weeks to present city councilors with options for dealing with such questions as: should the city consider annexations of property near the flood plain before the maps are straightened out? The City Council is expected to resolve all policy questions at a work session on the 29th -- then turn around and open the hearing on the PeaceHealth annexation. Is two weeks enough time to prep for the most controversial project facing the city? The brass says yes. "Is it complex? Is it controversial? Yes, it certainly is," City Manager Mike Kelly said. "Do I feel the council is feeling rushed? No, I don't." Kelly noted that people have been analyzing the project for at least six months, since hospital officials announced their plans to build in Gateway. Further, he added, the city is only considering tinkering with a policy that generally allows flood-plain development. The council's job would be far tougher if staff members were pushing a 180-degree turn to disallow all flood-plain development, Kelly said. The real rush, Mayor Sid Leiken said, would have been trying to resolve the issue in time for PeaceHealth to come before the city Monday. Leiken also noted that the Lane County Boundary Commission, which oversees annexations, has the final say at a meeting June 6. (end) http://www.registerguard.com/news/20020413/1b.cr.spcitybeat.0413.html ------------------------------------------------------------ 8.sn - FLOOD PLAIN ANNEXATION REQUESTS POSTPONED ------------------------------------------------------------ By Tim Shinabarger The Springfield News, 4/13/02 Public hearings on two annexation requests for properties near the McKenzie River -- one owned by Arlie & Co., the other by PeaceHealth -- have been postponed. The requests to annex 12 acres Arlie owns north of International Way and 59 acres PeaceHealth owns east of Baldy View Lane had been scheduled for Monday's City Council meeting. The hearings were rescheduled for April 29. The delay provides "another couple weeks for the council to wrap up their knowledge-building phase," City Manager Mike Kelly said. It also gives the council a chance to consider "whether they want me to start formulating some interim policy on how we manage the flood plain," he said. That's not something the council has been pursuing, he said. "The council may feel perfectly equipped to act on these annexation requests or they may want more information," Kelly said. Kelly himself proposed the delay because the council will be in a much better position to make the decisions with added information, he said Friday. He called both Arlie & Co. and PeaceHealth to seek agreement for the delay, he said. PeaceHealth was willing to delay; Arlie & Co. was less willing, he said. He used his administrative authority to order the delay anyway, Kelly said. The two requests need to be "bunched" because both properties have flood plain issues, he said. In their last three meetings, city councilors have discussed flood plain issues at two meetings and heard public testimony at a third. At the March 25 meeting, a federal specialist said the official map that delineates the McKenzie River's 100-year flood plain is inaccurate. Joe Weber, a natural hazards specialist for the Federal Emergency Management Agency, said the FEMA maps underestimate the amount of land that floods during 100-year flood events along the river. He suggested city staff use computer technology to assess the accuracy of the maps, which he said would be a six-week process. The FEMA maps show most of the Arlie property and PeaceHealth property are within the 100-year flood plain. Council President Lyle Hatfield said Friday it's unlikely the council would change city policy on flood plain development. The policy allows development in the flood plain but puts conditions on how structures are constructed. He said he expects city staff to have the FEMA data updated by June. If councilors decide to change the city development code, they will go through a lengthy public process before they do, he said. "We're probably not looking at doing any policy changes or code changes for up to a year," he said. Councilor Dave Ralston said the council will continue with current policy until it is presented with data that support the need for a policy change. As for the annexation requests, he said he needs to see the requests and all the data. The council will make the best decision for the city, he said. "We don't want to be unfair to any group," Ralston said. "It's going to be a tough decision no matter what it is. You can't make everybody happy on both sides." He will strongly urge FEMA to update its information, he said. "We've been making decisions for decades based on what the FEMA map says," Ralston said. "If they're not right, somebody should be working on that really fast." The council has heard a lot of anecdotal information that the maps are wrong and if they are, they should be corrected, he said. "The bottom line is we don't want to put the city where it's responsible for public loss of any kind," he said. Councilor Christine Lundberg said the council may not have enough information by April 29 to make a decision on the annexation requests. "I could see myself not being comfortable enough to say either yes or no depending on the information we have," Lundberg said Friday. "I know they're on a work timeline where they want to be able to move forward (but) we may not be able to do that for them." If PeaceHealth or Arlie & Co. wants to seek council approval now knowing the city is engaged in a study of flood plain issues, "that's a chance they have to take now if they want to move forward now," Lundberg said. Both Lundberg and Ralston said they haven't been presented with the annexation requests yet. Lundberg said it's not so much a matter of changing city policy as it is a matter of changing the information the city uses to determine whether a development fits city policy. The annexation requests scheduled for April 29 will be judged under the current code, Hatfield said. The Lane County Boundary Commission has the final say on the requests, but the council makes a recommendation to the commission on whether to approve or deny. (end) http://www.springfieldnews.com/news/frontpage/sn_frontpage-02.htm#TopOfPage http://www.springfieldnews.com/2002/news0413/frontpage/sn_frontpage-02.htm#TopOfPage ------------------------------------------------------------ 9.rg - HOSPITAL ANTITRUST SUIT SET FOR JUNE 2003 ------------------------------------------------------------ By Tim Christie The Register-Guard, 4/9/02, Page 3D Barring a settlement or dismissal, the trial in McKenzie-Willamette Hospital's antitrust lawsuit against PeaceHealth is expected to last up to four weeks and to take place in June 2003. That tentative trial schedule, as well as other details of how the parties will gather and share evidence leading up to trial, was settled Monday when U.S. Magistrate Thomas Coffin talked with lawyers for the two hospital organizations in a 45-minute telephone conference call. Also Monday, U.S. District Judge Michael Hogan was assigned to preside over the case. McKenzie-Willamette is an independent community hospital in Springfield. PeaceHealth is the corporate parent of Sacred Heart Medical Center in Eugene, based in Bellevue, Wash. In a suit filed in January in federal court, McKenzie-Willamette accuses PeaceHealth of wielding its dominant market power to unfair advantage, specifically by the way it negotiates preferred provider agreements with Regence BlueCross BlueShield of Oregon. McKenzie-Willamette alleges that PeaceHealth offered Regence deep discounts for two services where it has no competition -- cardiovascular and neonatal intensive care -- and in return, demanded that customers in the Regence plan go to Sacred Heart for all other care. Last week, PeaceHealth attorneys asked the court to throw out one of McKenzie-Willamette's seven antitrust claims, arguing that it was legally defective. PeaceHealth lawyers say the facts as presented by McKenzie-Willamette don't support the allegation that PeaceHealth engaged in an illegal "tying" scheme in its contract with Regence. In antitrust law, it's illegal for a dominant competitor to link two products, for instance, by telling a customer that if it wants to buy one product it must also buy a second product. On Monday, McKenzie-Willamette spokeswoman Rosie Pryor said "tying" also can mean coercing a customer into not doing business with a competitor, which is what McKenzie-Willamette alleges PeaceHealth did with Regence. McKenzie-Willamette lawyers will argue that the claim is legally sound, but even if the judge grants the motion to dismiss the claim, the hospital will have an opportunity to amend its lawsuit later with a corrected claim, said David Jewett, a Springfield lawyer acting as McKenzie-Willamette's general counsel. In any event, Jewett said, McKenzie-Willamette has six other antitrust claims against PeaceHealth and only needs to win on one to prove PeaceHealth competed unfairly. (end) http://www.registerguard.com/news/20020409/3d.cr.mcwillylawsuit.0409.html ------------------------------------------------------------ 10.sn - PEACEHEALTH MOVES TO DISMISS PART OF LAWSUIT ------------------------------------------------------------ By Tim Shinabarger The Springfield News, 4/10/02 Attorneys for PeaceHealth have filed a motion to dismiss part of the lawsuit McKenzie-Willamette Hospital filed against PeaceHealth on Jan. 28. In a memorandum filed last Wednesday with the U.S. District Court in Eugene, PeaceHealth's attorneys moved to dismiss McKenzie-Willamette's claim that PeaceHealth illegally "tied" the price of its product to an agreement with an insurance provider. According to PeaceHealth legal counsel Stu Hennessey, the facts McKenzie-Willamette set forth in its complaint don't fall within the definition of "tying" as set forth in anti-trust law. McKenzie-Willamette's lawsuit includes seven claims, including the claim of illegal tying. McKenzie also alleged restraint of trade, monopolization, conspiracy to monopolize and intentional interference with prospective economic advantage. The suit seeks punitive damages of $20 million and unspecified economic damages. In its claim of illegal tying, McKenzie alleges that PeaceHealth's agreement with insurance provider Regence Blue Cross Blue Shield of Oregon unlawfully suppressed competition. The lawsuit alleges that PeaceHealth unlawfully coerced Regence to keep McKenzie off its list of preferred providers in Lane County. PeaceHealth provides acute-care cardiovascular and neonatal services that McKenzie doesn't provide. McKenzie alleges in its lawsuit that PeaceHealth offered Regence discounts on those services in exchange for being Regence's exclusive preferred provider in the region. It alleges PeaceHealth illegally tied the discount to the exclusive preferred provider status. Because Regence doesn't list McKenzie as a preferred provider, people covered by Regence insurance who obtain services at McKenzie must pay large out-of-pocket costs compared to what they would pay at a PeaceHealth facility, according to McKenzie. In the motion it filed last Wednesday, PeaceHealth alleges McKenzie's claim that PeaceHealth "tied" discounts for exclusive services to being Regence's only preferred provider should be dismissed. PeaceHealth's attorneys say McKenzie's allegation fails to state an antitrust tying claim for two reasons: first, that PeaceHealth did not condition the sale of one service on the purchase of another; and second, that McKenzie fails to allege that Regence was coerced into buying services it did not want. PeaceHealth never required Regence to purchase its services on an exclusive preferred provider basis and there was no tie-in to a discount on the cardiovascular and neo-natal services, according to PeaceHealth's motion. PeaceHealth contends tying arrangements are prohibited by antitrust laws only when a seller exploits its control over one product to force a buyer into purchasing another product that the buyer didn't want or might have preferred to purchase elsewhere on different terms. According to the motion, PeaceHealth did not tie its services nor did it coerce Regence to obtain services it did not want. McKenzie-Willamette Hospital issued a statement Monday saying, "It is our assertion that Regence would have preferred to have both hospitals as preferred providers on its PPP plan, but were coerced, through the illegal tying of steep discounts on tertiary services, into accepting an exclusive agreement with PeaceHealth." McKenzie spokeswoman Rosie Pryor said Monday that McKenzie "wouldn't have put (the tying claim) in our complaint if we didn't believe it had merit." McKenzie will respond to the motion to dismiss by April 15, she said. PeaceHealth will have 11 days to respond after that and the court will rule within 60 days on whether it is dismissing the claim, Hennessey said. The court has scheduled a status conference on the case for April 15, according to the court clerk's office of the U.S. District Court in Eugene. (end) http://springfieldnews.com/2002/news0410/frontpage/sn_frontpage-02.htm#TopOfPage ======================= OTHER NEWS ======================= ------------------------------------------------------------ 11.rg - BUSINESS NEWS TEAM WINS AWARD FOR REAL ESTATE SERIES ------------------------------------------------------------ The Register-Guard, 4/9/02, Page 2B A package of articles published by The Register-Guard last year profiling Eugene real estate speculator John Musumeci and his Arlie & Co. has won a national business-reporting award. The package, which the newspaper published on Sept. 11, was one of three winners in the "enterprise" category of the annual awards contest sponsored by the Society of American Business Editors and Writers. The articles were written by business reporter Joe Harwood, general assignment reporter Susan Palmer and business editor Christian Wihtol. The Register-Guard competed among daily newspapers up to 125,000 in circulation. The other winners in that group and category were the Baltimore Daily Record, a business and legal newspaper in Maryland; and The Times of Huntsville, Ala. The contest does not rank the winners. (end) http://www.registerguard.com/news/20020409/2b.bz.awardbrf.0409.html ------------------------------------------------------------ 12.rg - WORKFORCE GROUP LOOKS AT HOSPITALS (BUSINESS DIGEST) ------------------------------------------------------------ The Register-Guard, 4/11/02 The Workforce Network's monthly "employer visit" event on April 17 will highlight the medical industry. The event will feature presentations on job opportunities by representatives from PeaceHealth/Sacred Heart Medical Center and McKenzie-Willamette Hospital and is open to people interested in careers in the medical industry. The event runs from 1 p.m. to 2 p.m. at 2510 Oakmont Way, Room 2, in Eugene. RSVP is required. Call Joanne of the Lane Workforce Partnership at 686-7601, Ext. 2288. (end) http://www.registerguard.com/news/20020411/1c.bz.digest.0411.html ------------------------------------------------------------ 13.rg - HOSPITALS REPORT OVERCROWDED ERs ------------------------------------------------------------ By The Associated Press The Register-Guard, 4/9/02, Page 4A Washington -- Most emergency rooms are full or overflowing, the American Hospital Association reported Monday. Its national survey found that one in three are so crowded that ambulances are sometimes diverted to other hospitals. The problems are most acute at large, urban hospitals. The vast majority of these emergency rooms said they were operating at or over capacity, and more than half of them diverted patients for at least an hour in November 2001. The problem runs throughout the system, with backed-up hospitals reporting longer waits to move patients into hospital beds and longer stays inside the emergency departments, the association said. (more...) http://www.registerguard.com/news/20020409/4a.nat.crowdedERs.0409.html ======================== CONTACTS ======================== ------------------------------------------------------------ CHOICES ------------------------------------------------------------ P.O. Box 70753, Eugene 97401 choices@efn.org Jan Wilson, Coordinator 341-1380 jswilson@efn.org Rob Zako, Editor, Email List Manager 343-5201 rzako@efn.org Steering Committee choices_steering@efn.org Announcements and Discussion Email List choices-l@efn.org ------------------------------------------------------------ SPRINGFIELD NEWS ------------------------------------------------------------ 746-1671, 746-0633 (fax) 1887 Laurel St., Springfield 97477 news@springfieldnews.com http://www.springfieldnews.com Shinabarger, Tim 746-1671 x316 ------------------------------------------------------------ REGISTER-GUARD ------------------------------------------------------------ 485-1234, 683-7631 (newsroom fax) http://www.registerguard.com Register-Guard Mailbag (Letters to the Editor) 485-1234 x2351, 338-2828 (fax) P.O. Box 10188, Eugene 97440-2188 RGLetters@guardnet.com McCowan, Karen (Columnist) kmccowan@guardnet.com Christie, Tim (Health & Medicine) tchristie@guardnet.com Cooper, Matt (Springfield and East Region) 338-2317 mcooper@guardnet.com eastnews@guardnet.com Dietz, Diane (Eugene City Government) ddietz@guardnet.com Haberman, Margaret (City Editor) rgnews@guardnet.com Wihtol, Christian (Business Editor) cwihtol@guardnet.com ------------------------------------------------------------ EUGENE WEEKLY ------------------------------------------------------------ 484-0519, 484-4044 (fax) 1251 Lincoln St., Eugene 97401-3418 http://www.eugeneweekly.com Ted Taylor (Editor, Letters to the Editor) editor@eugeneweekly.com ------------------------------------------------------------ SPRINGFIELD CITY COUNCIL ------------------------------------------------------------ 726-3700, 726-2363 225 Fifth St., Springfield, OR 97477 http://www.ci.springfield.or.us/ http://www.ci.springfield.or.us/calendar.htm http://www.ci.springfield.or.us/dsd/dept_dsd.htm http://www.ci.springfield.or.us/dsd/Planning/index.htm http://www.ci.springfield.or.us/dsd/Planning/Planning_Commission.htm Ballew, Anne (Ward 3) 744-9324 953 C St., Springfield, OR 97477 aballew@clippernet.com Fitch, Tammy (Ward 2) 747-6287 1102 West D St., Springfield, OR 97477 tfitch@ci.springfield.or.us, Fhins@fitch-huggins.com Hatfield, Lyle (Ward 6) 746-6684 518 North 68th Pl., Springfield, OR 97478 lylehatfield@attbi.com Leiken, Sid (Mayor) 726-9848 196 38th Pl., Springfield, OR 97478 mayor@ci.springfield.or.us, sid@maoregon.com Lundberg, Christine (Ward 1) 747-0571 127 Woodlane Dr., Springfield, OR 97477 CKLundberg@Prodigy.net Ralston, Dave (Ward 4) 746-7081 2114 L St., Springfield, OR 97477 chess714@msn.com, Simmons, Fred (Ward 5) 747-4283 312 South 52nd Pl., Springfield, OR 97478 fsimmons@ci.springfield.or.us ------------------------------------------------------------ EUGENE CITY COUNCIL ------------------------------------------------------------ 682-5010 777 Pearl St., Room 105, Eugene 97401 mayorandcc@ci.eugene.or.us http://www.ci.eugene.or.us/ http://www.ci.eugene.or.us/Council/Agenda/AGENDA.htm http://www.ci.eugene.or.us/council/agenda/CCAGENDA.pdf Bettman, Bonny (Ward 1) 344-3150 2191 Friendly, Eugene 97405 Bonny.S.Bettman@ci.eugene.or.us Farr, Pat (Ward 6) 689-0542 1929 Praslin St., Eugene 97402 Pat.M.Farr@ci.eugene.or.us Kelly, David (Ward 3) 686-3343 2988 Chandler St., Eugene 97403 David.S.Kelly@ci.eugene.or.us Meisner, Scott (Ward 7) 338-9946 66 North Adams St., Eugene 97402 Scott.Meisner@ci.eugene.or.us Nathanson, Nancy (Ward 8) 686-3446 2516 Hawkins Lane, Eugene 97405 Nancy.L.Nathanson@ci.eugene.or.us Pape, Gary, (Ward 5) 349-9939 355 Goodpasture Island Rd., Suite 400, Eugene 97401 Gary.D.Pape@ci.eugene.or.us Rayor, Gary (Ward 4) 343-5070 2373 Washington St., Eugene 97405 Gary.E.Rayor@ci.eugene.or.us Taylor, Betty (Ward 2) 338-9947 1051 East 36th Ave., Eugene 97405 Betty.L.Taylor@ci.eugene.or.us Torrey, Jim (Mayor) 682-5882 Jim.D.Torrey@ci.eugene.or.us ======================= OTHER LINKS ====================== PEACEHEALTH - WILLAMETTE VALLEY http://www.peacehealth.org/Community/owv/ MCKENZIE-WILLAMETTE HOSPITAL http://www.mckweb.com/ OREGON DEPARTMENT OF LAND CONSERVATION AND DEVELOPMENT http://www.lcd.state.or.us/ ARLIE & COMPANY http://www.arlie.com/ =========================== KEY ========================== "Health Options Digest" is best read with an email program that recognizes links to web pages. It includes leads from and links to stories and opinions from the following publications: rg = The Register-Guard sn = Springfield News ew = Eugene Weekly cn = Comic News ode = Oregon Daily Emerald cce = City Club of Eugene Newsletter or = Oregonian For some stories (in the Springfield News and the Eugene Weekly), two links are given. Use the first link if the story is still current; use the second if another issue has since been published. ========================= CREDITS ======================== "Health Options Digest" is published once or twice a week by the Coalition for Health Options In Central Eugene-Springfield (CHOICES) as a service to the community. It is intended as an unbiased digest of news and opinion related to proposed changes in health care options for the community. The purpose of "Health Options Digest" is to inform, not editorialize. Please forward your copy of "Health Options Digest" to a friend. If you know of someone who should be on the CHOICES email list, or for questions about your subscription, send email to rzako@efn.org.