Evening star., 1938-10-06
american Hospital Association
Advances Pre.Payment Plan
Action at Convention Opens Door for
Medical Service Proposals Such as
District Society AdOpted.


The American Hospital Association
has opened the door for cooperation
between local group disqualification
units and proposals for prepayment
medical service plans such as that
adopted last night by the Medical So
ciety of the District of Columbia.
This action was taken by A. H. A
at the annual convention of its House
Of Delegates at Dallas, Tex, where
eight Washington hospitals were Of
| ficially represented by Ross Garrett
their delegate.
Mr.. Garrett. who is administrator
and health security engineer of the
Health Security Administration, Eighth
and I streets NV, returned from
Dallas today, with official reports oi
resolution which was adopted by the
A. H. A. which laid the foundation TO,
cooperation.
This resolution laid down a seven.
point program of principles by which
1t is prepared to approve periodic
payment plans for hospital care and
medical service in hospitals which
are also approved by the local medical
profession"
Will Ask Cooperation.
The Medical Society, in adopting it:
prepayment medical service plan, las,
night announced that it would ask TO,
cooperation from Group Hospitaliza.
ton, Inc, Of this city. This latter
organiza ton, about three years old
with which the Medical Society already
co-operates, has about $4,000 SUBJ
scribers, who buy their hospital service
on prepayment arrangement on q
monthly basis.
Pointing to the fact that hospital
| service plans numbering more than SO
! throughout the country, including this
one in the District OF Columbia, now
have more than 100000 subscribers,
With membership increasing at the
rate OF more than 1000 900 year, the
resolution pointed out that medical
| societies Of the country are now study
ing and IN some cases are preparing
to sponsor group payment plans to
cover medical fees of patients of lin
tied means.
Part of the resolution which sought
to include medical care is a distinct
departure from the past policy of the
A. H. A. and all group disqualification
units. In the past, they have dis
| tinctly refrained from including
doctors bills in their pre- payment plan
for meeting hospital expenses.
Seven Point Program.
Briefly, the point program laid
down by the A. H. A. provides that
medical plans should be under the
control of non-profit organizations with
free choice Of physician and hospital;
financial soundness; adequate account
ing; equitable payments to both physi-
clans and hospitals; separate finances
and reserves for hospital care and for
physicians services.
The District Medical Society today
pushed forward to work out further
details of its prepayment medical
service plan" in order to be ready
to take final action, probably at its
regular meeting in December, on the
program as an experiment"
Approved in its basic principles by
the society last night, the project is
in the hands of the Committee on
Medical Economics, headed by DR.
Arch L. Riddick. A prospectus may
be ready about November Is for the
physicians consideration before the
December session.
The society also last night proposed
a more adequate medical service pro-
gram for the care of the INDECENT in
their homes by the private physician
who would be compensated by the
Government.
Inadequacies in District.
In an official statement 1t was ex-
planned "the society expressed the
view that in this respect Che indigent)
there are still inadequacies in the
District Of Columbia in that no pro-
gram to provide medical care to the
people Of the District of Columbia
would be adequate which would not
include services not yet sufficiently
rendered to the INDECENT.
I'm furthering this plan for the
donliciliary care of the INDECENT" con-
tinued the statement, 'in line with
recommendations Of the National
Health Conference and the recent
action of the house of delegates OF
the American Medical Association,
the society recommends that a plan
for this service be worked out be-
tween the society and the health
officer Of the District of Columbia,
this plan to be reported back for fur
ther consideration by the society.
AS explained by the society's ofiicial
statement the basic features Of the low
income plan are:
81. Competent diagnostic and cura-
tive medical care will be provided to
all persons who wish to subscribe and
who are entitled to the benefits OF the
plan.
%. Persons privileged to subscribe
will be limited to (a) single persons
with annual incomes Of $4,000 or less;
(b) married persons with combined
annual income of s2,500 or less. Ad-
ditional income allowances are con-
templated for married persons with
dependents, In q manner which re-
mains to be determined.
"3. Subscribers will be permitted
free choice of all physicians partici-
pating in the plan.
Lay Participation Provided.
u. The plan will be operated
through a non-profit organization with
lay participation.
y. Necessary restrictions b poaesd