Evening star., 1938-07-31
DECISION IS NEAR
0NMED|CAL PROBE
Justice Officials Consider
Complaints Against A. M. A.
as G. H. A. Expands.

Group Health Association, medi-
cal cooperative NTH 5000 patients
OF Government families, is center
OF controversy oDer "socialised
medicine" but has been held legal
By District Court Justice Bailey.
Its surgeon. still barred from hospi-
tails, asks for courtesy staff priri-
leges.
Department of Justice is inuesti-
eating monopoly complaints against
District Medical Society and Amer
icdn Medical Association.
AS the Department of Justice
neared decision in its antitrust
investigation into monopoly COM
plants against the American Medical
Association and affiliated organiza-
tons, such as the District Medical
Society, plans were completed last
night for Group Health Association,
Inc, to enter new phase Of expan-
sion tomorrow.
Perry r. Taylor, who has resigned
from the Rural Identification Admin
istration, announced he will be ready
to take over his new duties tomorrow
morning as administrator" or busi-
ness manager, of G. H. A.
His advent is expected to begin a
new stage in the development of G.
H. A., declared legal last week after
a long -drawn-out court battle in
which it had been attacked by both
District law enforcement officials and
the District Medical Society.
Offices to Be Outside Clinic.
Mr.. Taylors headquarters as busi-
ness manager of G. H. A. will not
be in the clinic at 1923 I street NV,
he explained last night, but in an
office building nearby. This arrange
ment, he explained, will give the busy
clinic all the space available for medi-
cal services. The plans for expansion
OF the clinic are being made, Mr..
Taylor indicated, to meet an increased
demand for its services. More phy-
sicians are being added to the staff.
The Justice Department has been
conducting an intensive inquiry into
complaints against the A. M. A., the
District Medical Society and other
afhliated organizations of physicians.
Late last week Assistant ATTORNEY
General Thurman Arnold, in charge
OF the departments antitrust division,
indicated the investigation was ap-
preaching conclusion. He said he
would issue formal statement when
and if definite course of action is
determined"
Unfair Practices Charged.
The gist of the complaints is under
stood to be that certain medical or
ganizations have been sitting compe-
tition and attempting to prevent the
public from receiving benefits of lower
medical costs offered by group health
plans.
Under established procedure in anti
trust cases, it has been pointed out,
there are two courses open to the
antitrust division-criminal action
through grand jury proceedings and
civil action through a suit in Federal
court.
Mr.. Arnold, in a recent public
statement, said that. as a general
policy, he favors criminal instead Of
civil procedure to prevent illegal
practices" He declared it is "neces-
sary that businessmen realize that
when they indulge in doubtful prac-
tlce they are taking the chance of
something more than an Injunction"
Pine Faces Two Problems.
Meanwhile, United States ATTORNEY
David A. Pine is confronted by two
problems regarding the medical STU
alton here. He has a request from
the Washington League for Coop.
erative Medical Service to institute
quo warranto" proceedings against