Evening star., 1938-08-01
Statement on Probe of Medical GROUPS
Justice Department Holds Monopoly of Services racced
by Society, Is Prohibited by Law

The text of the Justice Depart
ments statement concerning the
group health controversy follows:
A preliminary investigation made
by the Department OF Justice in re-
sponse to numerous complaints has
disclosed the following situation with
reference to activities within the
medical profession In the District Of
Columbia.
Group Health Association, Inc, was
organized in the District Of Columbia
a year ago by $500 Government en-
ployes, principally from the lower
salary classes, to provide prepaid med
ical care at 4 cost which the members
could afford to pay. This group re-
tanned Its own physicians, who have
undertaken to provide the members
with virtually complete medical care.
The Medical Society Of the District Of
Columbia, the American Medical As
sociation, and some Of the ofIicials of
both these orgsniza tions, are attempt
ing to prevent this association from
functioning. The methods they have
! used are.
Methods Listed.
l. Threatened expulsion from the
District Medical Society of doctors
who accept employment with Group
Health Association. Because Of the
power and standing of the Medical
Society, and the stigma sometimes
attached to expulsion from 1t, this
causes Group Health Association great
difhculty In employing competent
physicians.
2. Threatened expulsion from the
Medical Society Of doctors who take
part in medical consultations with
doctors on the Group Health Associa-
ton staff. This in effect amounts to
forcing members Of the Medical So
ciety to participate In an illegal boy
colt Of Group Health Association
doctors.
3. The expulsion from Washington
hospitals OF the Group Health Asso-
citation staff doctors; this has been
accomplished either in combination
with the various hospitals or by means
Of influence, which may or may not
have amounted to coercion. upon them
This exclusion has made it impossible
for doctors af1iliated with Group
Health Association to practice their
profession in the hospitals and it has
prevented members Of the association
who enter the hospitals as patients
from having the service Of the physi-
clans Of their own choice.
Grand Jury Probe Planned.
In the opinion Of the Department of
Justice. this is violation Of the anti
trust laws because it is an attempt on
tie part Of one group OF physicians to
prevent qualified doctors from carrying
On their calling and to prevent men,
bers Of Group Health Association from
selecting physicians of their own
choice. The department interprets the
law as prohibiting combinations which
prevent others from competing for
services as well as goods. The particu-
lar persons responsible for this VIOLA
ton can only be ascertained by grand
jury investigation. Such an investiga-
tion will be undertaken by the DEPART
ment in the near future.
The reasons for issuing this state
ment prior to the calling OF 4 grand
jury follow the general policy hereto
fore announced The two Objectives
Of the antitrust laws are, first, to act
as = deterrent and TO provide = means
Of maintaining competitive conditions
In the future The second objective is
constructive aim which requires the
cooperation Of those concerned. In
obtaining this cooperation, the de-
partment must avoid making surprise
moves.
Warnings Necessary.
1t must warn those who are engaged
in what the department considers
violations Of the acts Of its attitude