Evening star., 1937-12-30
CONFERENCE HELD
ON LEGAL STATUS
Of GROUP HEALTH
Officials of U. S. Attorneys
Office, Seal and H. o. l. c.
Aides Present.
ORGANIZATION BACKED
BY FEDERAL GROUP
Committee Of New Unit Plans to
Extend Program to 10000
in Government.

The legal status of the embattled
Group Health Association, Inc. for
medical care of employees of the Home
Owners Loan Corp, was the subject
of an important conference this after
noon at the District Court Building
between officials of the Office Of the
United States attorney, the corpora
ton counsel and H. o. L. c.
G. H. A. has been under fire from
both the American Medical Associa-
ton and the District Medical Society,
but today 1t was enthusiastically in
dorsed" by distinguished group Of
Government officials and employees
from IS departments and establish
ments. which comprise the Committee
for Cooperative Medical Service for
Federal Employees. This committee
plans to 60 forward with a plan Of its
own. similar to G. H. A.
Corporation Counsel Elwood H. Seal,
who has had the dispute as to
G. H. AS status in his ofI1ce for
weeks, had intended to make public
his finding in the matter at noon.
Instead, he deferred his announce
ment until after conference with
United States Attorney Leslie c. Gar
nett this afternoon. To this con-
ference were also invited representa-
tives Of the H. o. L. c.
Mr.. Seal has said the dispute mar
rowed down to two points: Either
the G. H. A. is corporation en-
gaging in the practice of medicine, in
which case it is a problem for the
district attorney; or else, G. H. A. is
engaged in the insurance business,
In which case it should qualify as
an insurance company.
Contention Of H. O. L. C.
In defense, officials of the H. o. L. c.
have insisted that G. H. A. is neither,
but merely a corporation engaged
In selling service.
The Committee for Cooperative
Medical Service for Federal Employees
plans to set up an organization to
care for 10000 employees.
The committee made public last
night q comprehensive report of
findings" from a subcommittee, in
dorsed Group Health Association, and
criticized the District Medical Society
for its attack against G. H. A.
The subcommittee report went into
the operations of group health in great
detail, and then took up the question
Of the District Medical Society, saying:
Although it is evident that many
local physicians are in sympathy with
the Group Health Association pro-
gram, nevertheless, the organized
medical profession in the District is
opposed to the plan, and is taking
various steps to prevent its operation.
The Medical Society has employed at
torneys to defeat it legally in the
courts. The organized profession is
subjecting the physicians of the staff
to severe pressure, amounting practi-
cally to professional ostracism, and
apparently is endeavoring to make it
difficult for the hospitals to permit the
staff physicians the use of their facili-
ties. Intensive lobbying is in progress
with members of Congress to force the
Home Owners Loan Corp to withdraw
the financial support which it has
given the association"
Committee Resolution.
Based on findings of the subcom-
mittee, the Executive Committee of
the General Committee for Co-opera-
tive Medical Service officially resolved: ::
THAT the objectives which mott
waited the formation of this committee
will have been largely obtained by the
success, development along similar
lines. and expansion of the Group
Health Association, Inc. plan.
That the Committee for Co.
operative Medical Service for Federal
Employees Is greatly encouraged by
what Group Health Association has
done, as well as by its plans for the
future, and will carry forward its own
plans on similar lines as the way
opens.
THAT the committee indorses Group
Health Association, Inc, and under
takes to render such assistance as it
can to this plan"
DR.. Pearson Heads Group.
The committee is headed by DR..
Paul M. Pearson, former Governor OF
the Virgin Islands. A. c. Edwards of
the Department of Agriculture is Sec
retary and Franklin c. Billings,
executive secretary.
In explaining the operation of Group
Health Association, the subcommittee
pointed out that the plans schedule
Of charges and services is modelled
after the Stanacola Employees Medi-
cal and Hospital Association plan at
Baton Rouge, La, with the difference
that the charges have been increased
by 10 per cent to cover presumed diff
ferences In medical costs between the
two cities.
Significantly, in view OF the attitude
Of the District Medical Society, the
report says: "A medical advisory COM
mittee (for g. H. A. composed oi
recognized medical leaders is to be
established as soon as possible. The
function Of the committee will be tc
advise the medical director with re.
spect to standards and the selection Of
new physicians to be added to the
stan. In short, the associations med
ical staff and facilities are such as to
enable the provision Of good medical
service and its announced policies tend
to this end"
The expenditure of funds by H. O
L. c. to establish the clinic was de-
clared by the committee to be justified
and in line with the policies of many
other progressive employers through
out the country who have found that
itlepays to assist their employees tn
obtaining adequate medical care"
t
Criticizes Haig Statue.
In describing the new Haig statue
Asa hal Ta~1nvA Cir foV