The Washington times., 1938-12-20
CHA HISTORY
STORMY ONE
SINCE START
Opened Doors to Poorer
Patients Year Ago

Group Health Association. Inc.
storm center of the nationwide
furore, which led to today'S whole
sale indictments for restraint OF
trade in the medical profession,
opened its doors to low-income pa
tientS on November /. 1887.
Hardly had the first patient
crossed the threshold when a
storm OF protest from organized
medicine threatened to cripple its
activities.
PROBES FIZZLED
The movement against the asso-
citation grew to tremendous pro-
portions throughout the country,
spreading to other group medicine
plans, and enveloping such wide
areas and projects that congress
sional investigation Of the Setup
indicted by the grand jury was
asked.
The investigation fizzled, but
the critics of the American Medi-
cal Society on the one hand and
Of Group Health on the other
flourished, until last August, when
the Justice Department announced
it would seek indictments for
monopolistic practices by the
medical societies.
SUBSIDY ASSAILED
Originally, when Group Health
was launched. it was to serve
the employees of the Home Owners
Loan Corporation. and the Fed
eral agency advanced some $37 :
900 to the association to get
started.
Immediately members of Cong
reSs launched an attack on the
so-called subsidy" and the Comp
triller General ruled that the
Hole was without authority OF
law" il advancing the money.
McCARRAN LAUNCHED PROBE
The investigation of the loan
was launched by Senator Pat NC
Carran Cd of Nevada, a member
OF the Senate District Committee,
who was later joined by Senator
william H. King CD OF Utah,
committee chairman.
Group Health. however, con-
tinued to operate and began pay
ing back the money to the Govern
ment, in order to operate within
the Law. as prescribed by the
Comptroller General.
The District Medical Society
joined the fray heatedly. Group
Health was literally condemned
by the society and by its members,
its hardest blow at the young
association coming when CHA
doctors were banned from local
hospitals.
ONE DOCTOR EXPELLED
One physician, Mario. scandif-
flo. was expelled from the medical
society.
Officials of the District Govern
ment also joined in the hadgering
Of the CHA. with an inquiry to de-
termine whether the association
had complied with the Districts
insurance laws.
Late last July that question was
settled when Justice Jennings
Baily, in District Court, held that
the CHA did not violate the Dis
trict's insurance laws or the heal
ing arts practices act, and further
held it was a valid organization
of physicians and potential pa
tientS.
HOSPITAL PLAN HALTED
Earlier this year, CHA was re-
buffed in attempts to build its own
hospital in Chevy Chase. Md.
Although originally established
for the purpose of serving Hole
employees, the CHA virtually sew
cred relations with the Hole
after the financial ruling and
opened its doors to all Government
employees.
Most members of the CHA come
from low-income groups, 80 per
cent of them earning not more
than 50 900 a year. The aSsocia-
ton provides medical care and
disqualification to it's members and
their dependents on riSk-Sharing,
prepayment basis.
HOW 1T WORKS
Medical care is provided by the
medical staff, which consists OF
salaried general practitioners and
specialists engaged in group prac-
tice under the sole direction OF a
medical director. The corporation,
according to today's indictment,
pays adequate salaries to the doc
tors on its medical staff and pro
VideS the medical staff with a
modern, well-equipped clinic"
The Congressional investigation
Of the medical societies was asked
at the last session of Congress by
Representative Byron Scott, whose
State, California. has several
group health plans.
EXTRA FEES CHARGED
Columbia Hospital, in March of
this year, announced It would per.
NIT CHA doctors to bring matern.
ity cases there. At that time. a
CHA official announced the as
ISOLATION was being forced to pay
other doctors to treat CHA