Evening star., 1938-02-18


Loan Bank Board had no thought of
'injuring the status of individual
physicians or Of their professional
organizations" John Fahey. chair
man Of the board, today told why it
had contributed $4,000 to Group
Health Association, Inc, center Of at
tack by the District Medical Society.
The board contributed these funds,
Mr.. Fahey said in letter to Rep
resentative Jed johnson of Oklahoma,
member Of the Independent Offices
Subcommittee on Appropriations, be-
cause IS per cent of the board en-
ployes receive annual salaries Of less
than $1,000. These employees there
fore are in a group, he said, which
research has shown does not receive
proper medical care.
Mr.. Fahey pointed to q survey made
by the National Committee on the
Cost OF Medical Care, which showed
that even in a prosperous period rs
to 80 per cent Of all cases of rela-
lively serious illness never come un-
der the care of physician, and that
half of the families with incomes of
less than $4,000 receive no medical
care whatever"
Into Debt for Care.
The bank boards own studies of
Federal credit unions reveal, Chairman
Fahey said. that . huge portion of
"worrisome debt" among its employees
resulted from medical expenses.
Citing further that the bank board
and its agencies were suffering an an
nual loss of 100000 from the illness
Of employees in Washington alone, Mr..
Fahey asserted that the board had not
anticipated any serious hostility to the
group health plan or the boards sup
port Of it.
Mr.. Fahey's letter and Representa-
tive Johnson's request for the ex-
PLANTATION appeared in the Congress
sional Record. Mr.. johnson told the
House he had inquired further into the
matter "inasmuch as there has been
considerable criticism on this activ-
ity, and because I desired further in
formation on the subject" He said
he had asked several questions when
the matter came before the subcom-
mittee, Of which he Is q member.
''No Thought Of Injury
Chairman Fahey in his reply de-
clared: I'VE are too conscious of the
honorable position and the distin-
guished scientific and humanitarian
contributions of the medical profess
sion to disregard their interests and
welfare. We had no thought of in
juring the status of individual physi-
clans or Of their professional organi-
cations.
THAT the Group Health Associa-
ton will not do 30 IS attested by the
experience of the large number of pri-
vate corporations which have associa-
tions of similar character. In the
judgment of outstanding physicians in
every section of the country these
plans are sound and commendable. It
is unfortunate that q few physicians
both locally and nationally have mis-
understood or misinterpreted our ef-
forts and as result have locally made
the work Of our association dimcult.
"Such q plan as our employees have
developed has obvious advantages to
the medical profession In discouraging
quacks or fraudulent practitioners,
eliminating the evils Of free practice
among low-income groups and pro-
viding acceptable channels for the
paid practices Of effective preventive
medicine"
Cites Heavy Expense.
In the four agencies under the su-
pervision of the H. o. I. c. Board,
about 1900 men and women are en-
ployed, Mr.. Fahey said. Nearly IS
per cent Of current operating expense
consists Of wages to employees. Since
losses suffered from illness create heavy
expense which the experience of pri-
vate corporations proves can be re-
duced by proper medical care We are
convinced that We were in every way
justified in cooperating to make pos
sible IN undertaking which should re-
duce our costs and improve the output
and efficiency Of those on our pay rolls.
There are now between two and
three million Americans who get all
or much Of their medical care through
voluntary oo-operative health plans.
Examples are 70 be found In nearly
every part Of the Nation where en-
ployers and employees Of large III
dustries have Joined In cooperative
endeAvors foc, this purpose. - About
one-third Of the Glass steam rail-
roads Of this country have IN use or
ganized plans for the medical care of
their employees. Mines, lumber mills,
textile manufacturing plants. DEPART
nenA aoeao, hEgo ahoo 65aoto1i90 end