Evening star., 1937-12-31
2D0CTORS 'TRIED' .
IN GROUP HEALTH.
QUIZ BY SOCIETY
Dr.. Lee and Dr.. Scandiffio
Summoned to Answer
Ethics Charges. e
D. C. COURT TO DECIDE g..
ASSOCIATIONS STATUS.
G. H. A. Is Operating Illegally,
Seal and Garnett Decide
at Conference.

Two physicians have been brought
to trial before the District Medical So
clety for violation Of the organizations
rules In connection with their activities
In the clinic Of the Group Health As
sociation, Inc, it was learned today,
Earlier Corporation Counsel Elwood
H. Seal and United States Attorney
Leslie c. Garnett had decided at .
conference yesterday that the G. H. A.
Is operating illegally. The decision
was not formally announced, however,
it being decided instead to give the
controversy over the organizations
status a public hearing in District
Court next week.
Il am convinced that the associa-
ton is practicing medicine illegally" ~"
Mr.. Seal declared, land I believe it
also Is carrying on an insurance busi-
ness illegally-though the latter In
wolves rather fine question. The
whole situation is so important, how
ever, that it was thought best to ask
the court to rule on it."
The physicians involved In he Med
ical Society proceedings are DR.. Allan
E. Lee, who maintains an office at 1921
Connecticut avenue N. W., and DR..
M. Scandifi6, Schuyler Arms, 1854
Columbia road NV.
Both Have Been Summoned.
Both physicians, it was learned,
have been summoned before the So
ciety since the group health dispute
broke out to prove that they were not.
acting unethically. DR.. Scandifao was
given the last hearing Monday night.
The G. H. A., which provides med
ical care for approximately 1000 en-
ployes of the Federal Home Loan
Bank Board, the Home Owners Loan
Corp. and their afhliates, will file a
petition in District Court under the
new "declaratory Judgment law" re-
questing an official definition Of It's
status, it was decided at yesterdays
conference.
Besides the corporation counsel and
the United States attorney, those who
participated in the conference, which
was held in the District Court Build
Ing, included Assistant Corporation
Counsel Vernon West, Assistant United
States Attorneys David A. Pine and
Howard Boyd, and Horace Russell
general counsel Of the H. O. L.C.
Mr.. Russell indicated afterward he
probably will act in filing the petition
with the court sometime next week.
In case the G. H. A. does not act.
through its counsel, Mr.. Garnett indi-
Gated the District Attorneys ofice
might file bill in equity. But, in any
case, he emphasized, it will be an
amicable proceeding.
Two principal points are 1T issue:
Whether the G. H. A. Is q corporation
engaged in the practice of medicine;
or whether it is corporation doing
an insurance business, without being
licensed to handle an insurance busi-
ness.
Whether the question Of money
behind G. H. A. will be presented to
the court was not disclosed. The
Home Owners Loan Corporation has
authorized advance Of $4,000 and has
already turned over $4,000, which
Acting Controller General Richard N.
Elliott has held to be without author.
ity Of law" His decision, however.
was believed to be only an advisory
one, delivered in . letter to Senator
McCarran, Democrat Of Nevada.