ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, November 12, 1996 TAG: 9611120110
SECTION: VIRGINIA PAGE: C-1 EDITION: METRO
COLUMN: What's On Your Mind?
SOURCE: RAY REED
Q: Trigon's conversion from a nonprofit insurance company to stockholder ownership received final approval from the state two weeks ago. Doesn't this make Trigon more accessible to ownership by groups such as large hospital corporations? A.H., Roanoke
A: Yes, legally and in theory Trigon is now free to buy other companies, and it's also a potential target in the takeover market.
It's far more likely, however, that Trigon will be the acquirer rather than the acquiree.
Trigon presents a strong front. It has financial strength, a highly recognized brand name and a favorable legal environment in Virginia, said George Shipp, a health care analyst with Scott & Stringfellow in Richmond.
As a Virginia corporation, Trigon has the protection of the state's anti-takeover laws, and Virginia insurance commissioners tend to favor state companies, Shipp said. At least in the short term, management would get every legal opportunity to thwart a hostile offer.
Trigon's purpose in becoming a public company was to invest in new services and new territories.
Around the country, corporations such as Kaiser own both hospitals and insurance companies.
Conglomerates aren't the only answer, though. Some folk think smaller is better. "The marketplace wants different options. Some doctors want to affiliate, others want to remain independent," Shipp said. "There will be big guys and some niche players, too."
Ought to be a law
Q: Why don't local governments pass a law requiring trucks to remain in the right lane unless they're going to make a left turn? D.C., Roanoke
Q: Why don't college towns make it advisable, or a law, for students to have lights on their bicycles? I'm afraid I'm going to hit one of these in the dark on a blind hill or curve.
D.W., Montgomery County
Q: Why don't police do more about the gridlock on Elm Avenue around Fourth Street, I-581 and Williamson Road?
N.N.
A: We look at problems like these and think, "Why don't they pass a law?"
In some cases, they have.
A law's presence on the books doesn't mean enforcement is feasible, though. Several laws in Virginia don't get much attention from police - cohabitation and anti-smoking measures among them.
Keeping trucks in the right-hand lane sounds good for streets like U.S. 460 East in Roanoke, until we look at the number of left turns along such routes. Truckers always could argue they intended to turn left at the next street.
Lights on bicycles? That is a law (46.2-1015 in the Code of Virginia) and no one needs an education to see that it's a good idea. College students have problems with thieves stealing the lights because of where they park their bikes. (Helmet lights are an alternative.) Still, early sunsets find lightless bikers away from home.
Gridlock at I-581 and Elm? The city traffic experts are looking into putting up bigger signs that say "Don't block the intersection." Enforcement might help, but the fact is, that intersection's design is so messed up that tickets will never fix the traffic flow.
Got a question about something that might affect other people, too? Something you've come across and wondered about? Call us at 981-3118. Or, e-mail RayR@Roanoke.Infi.Net. Maybe we can find the answer.
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