Evening star., 1938-10-20
EVIDENCE begun
ON LOCAL BATTLE
TO BLOCK c. H. A.
R. R. Zimmerman, Personnel
Head of H. O. L. C., Called
to Back U. S. Charges.
WITNESS WAS PIONEER
IN GROUP HEALTH MOVE
Jury Is Given Groundwork for
Monopoly Case Against Two
- Medical Societies.

The Department of Justice today
began presentation of local details in
the battle over Group Health Asso-
citation, Inc, when it presented to the
special grand jury R. r. Zimmerman,
personnel director of the Home Owners
Loan Corp, for testimony to support
restraint of trade charges against
organized medicine.
Mr.. Zimmerman was the first local
witness to appear before the special
grand jury hearing the case against
the American Medical Association and
the Medical Society of the District Of
Columbia.
The department previously had
brought before the inquisitorial body
witnesses from out of town familiar
with the broad aspects of the CO.
operative health movement. But with
the presentation of Mr.. Zimmerman
it was apparent the grand jury would
begin hearing the story of the fight
between organized medicine and Group
Health Association which led to the
grand jury probe Mr. Zimmerman
. appeared at the afternoon session of
the grand jury. The morning had
been devoted to an executive session
between the grand jury and the De-
partment of. Justice staff headed by
Allan Hart, special assistant to the
Attorney General.
Was an Originator of G.. H.A.
Mr.. zimmerman, it has been known
Tor some time, was one of the orig
lnators of Group Health Association.
1t was from his studies on the cost
OF sick leave in the Home Owners
Loan Corp. that the H. O. L. C. de-
cided to set up G. H. A. to help cut
the cost of sick leave.
Mr.. Zimmerman had large expe-
rlence in personnel activities with big
business interests before coming to
the Government. He already knew
something of the cost of sick leave.
When he came to the Government he
made a special study of the white
collar worker, and the Government
worker. As q result he made a re-
port. which later was laid before Con-
gress IN various ways to show that
the H o. l.. c. was losing $500,0OO
a year in sick Sleave cost throughout
the United States. This included
about 100000 in the District of Co.
lumbia.
Group Health Association, which
was set up in November, 1887, to pro-
vide medical care for H. o. L. c. en-
ployes and their families on a prepay
ment basis, has now expanded to the
employees of 38 Government depart
ments and agencies. The actual
membership of G. H. A., according to
recent figures, was 1900, but with the
edition of relatives and members
families, the patient load of G. H. A.
has been brought up to about 5000
people. G. H. A. has been consistently
opposed by organized medicine.
Background Given.
In three days of testimony-taking
the grand jury has heard four wit
nesses, all of whom were qualified to
discuss the general question of CO.
operative medical service, but none of
whom had figured publicly in the local
dispute. The purpose of this prelimi-
nary testimony, it is believed, was to
enlighten the jurors on the general
issues OF the controversy before they
received specific evidence against the
American Medical Association and the
District Medical Society. chief critics
OF Group Health Association
Two additional background" wit
hesses were heard by the grand Jury
yesterday. They were Charles W.
Taussig, New York industiralist who
has been a leading supporter of the
administrators program for lberaliz-
Ing medical service, and Clem Linnen-
berg, staff economist of the anti
trust division of the Department of
Justice. A statistical chart was car
ried into the grand jury room while
they were testifying.
The opening blasts against A. M. A.
and its local affiliate undoubtedly will
be delivered by representatives of
Group Health Association. the pre-
payment medical service cooperative
for Federal employees, launched last
year by the Home Owners Loan Corp.
A number of officials and members OF
the association have volunteered to
testify regarding alleged obstructionist
tactics by the A. M. A. and the Dis
tzsct society. Complaints by the Group
Health organizers against the two
medical bodies caused Attorney Cen
eral Cummings to order the grand jury
inquiry on the theory that the ply
slrlans' organizations were restraining
trade" in violation OF the Sherman
Antitrust Act.
The Government contends that
medical practice is trade" as encom-
passed by the Sherman Act.