NASHVILLE - The first volley in what could be a protracted court fight concerning a non-compete clause was fired by two Nashville doctors and a physician's assistant Monday.

Last week Washington County Hospital officials announced Dr. Thomas Coy and Dr. Gary Goforth had rejected a final contract offer, which prompted the hospital board to immediately enforce a non-competition clause in each doctor's contract. The clause specifically states neither physician can practice medicine within a 40-mile radius of the hospital for a two-year period.

In a press release issued Monday, Coy, Goforth and physicians' assistant Deb Auld made it clear they plan to see patients in Nashville and the Washington County area despite the non-compete clause in their contract.

The brief statement reads:

"Dr. Thomas Coy, Dr. Gary Goforth and Deb Auld, PA, want to reassure their patients that they intend to continue practicing medicine in Washington County at Okawville and Nashville. A lot of wrong information has come out of Washington County Hospital. We know it is hard to believe that the hospital wants us to stop practicing - but it does. In order to obtain a copy of your medical records, we will need you to sign a release form which is available at our Nashville or Okawville offices. We appreciate your help, trust and support."

The typed press release contained the handwritten signatures of Coy, Goforth and Auld. All three will remain under contract to the hospital until Sept. 16.

The hospital issued a press release last week stating that Coy and Goforth had rejected a final contract offer but adding that the hospital would continue to serve area residents.

"This hospital is committed to provide essential healthcare services to the Washington County community for many more years and plans to continue to serve its patients at the rural health clinics located in Okawville and Nashville," the statement read.

The statement by the three medical providers that they will not honor the non-compete clause is the latest twist in the hospital saga that has dragged on for nearly three years and began when the hospital purchased the Family Medical Center. Coy and Goforth, who have both practiced in Nashville for more than 30 years, are part of a group of physicians at the medical center who approached the hospital board about purchasing their practice. Along with Coy and Goforth the doctors involved at the center are Dr. Mohammed Siddiqui and Auld.

The hospital board agreed to purchase the medical clinic and under terms of the agreement the doctors and physicians' assistants were all signed to contracts with the hospital and placed on salary. The hospital also paid incentives and the medical malpractice insurance premiums for all the physicians - an agreement that cost the hospital district approximately $1 million per year.

In return, the doctors' contract stipulates that they will refer all patients and ancillary services to the hospital, something that has not happened and has led to the financial problems according to hospital officials. Coy and Goforth, who own the medical center building, recently terminated the rental contract with the hospital.

In the years prior to the purchase the hospital was on solid financial ground and had cash reserves of more than $4 million dollars, an amount that has now decreased to approximately $1 million. The hospital lost more than $1.7 million during the last fiscal year that ended April 30. Hospital officials fear all the hospital's cash reserves will be depleted by the end of the 2006 fiscal year.

The hospital board, acting on a lengthy list of recommendations drafted by Glenn Poshard and Barbara Dallas, exercised a 90-day "no fault" termination clause in the contracts of all physicians - a move that was completed on June 16.

Poshard, of Carbondale, is chairman of the Illinois Hospital Facilities Planning Board while Dallas, of Murphysboro, retired last year after a 25-year career as senior director of rural hospital services for the Illinois Hospital Association. Poshard and Dallas both volunteered their services to try and find some common ground in the long-simmering dispute that now appears headed for a legal showdown about whether or not the non-compete clause is valid.

With Coy and Goforth leaving, the hospital's medical staff has now dwindled to only two doctors - Dr. Siddique and Dr. Marc Zerbe. Dr. Alan Hagen announced his resignation two weeks ago and Dr. Jay Brieler and Dr. Michelle Thomas have indicated that they will no longer see patients beyond Sept. 16, when their contract with the hospital expires.

According to a taped message, Nancy Newby, the hospital's CEO, will be out of the office throughout this week and will be unavailable for comment concerning the latest development. Attempts to reach Dale Blohm, chairman of the hospital board, were unsuccessful.

writeon1@shawneelink.net

618-625-2006