Evening star., 1939-01-31
Decision in Medical
Case Brings Study
OF Issues Here
Attorneys Seek to Learn
Similarity Of 6. H. A.
And California Body

Whether a Supreme Court de-
cision in California group medi-
cine case will have any future bear
ing on pending litigation here re-
volving around Group Health As
sociation and organized medicine
was a question which today started
many attorneys here on study OF
the issues involved in the Western
Coast case.
The Supreme Court yesterday re-
fused to review a decision of the
Supreme Court of California, which
had held that Pacific Health Corp.
of San Francisco was practlcing
medicine in violation Of the State
law. The San Francisco group Sc
lected and paid licensed physicians
to care for members.
Difference in Status.
Group Health, medical co-opera-
tive of Government workers here,
last summer was held by Justice
Jennings Bailey in District Court to
be legal, and not engaged in practice
of medicine.
G.H. A. started in the Home Own
ers' Loan Corp, but has now spread
to 43 Government departments and
establishments.
Although the status of P. H. c.
and G. H. A. is substantially dill
ferent from legal point Of view,
it is explained, their objectives are
similar-the social utility OF group
health enterprises.
The California association engages
outside doctors and pays the fees, a
practice branded a violation of the
State Medical Practice Act by the
Supreme Court of California. Group
Health Association. cooperative
engages it's own doctors and operates
it's own clinic in the 1900 block of
Eye street NV.
Court Split, 4 to 3.
The California Supreme Court
split, four to three, on the issue. The
minority judges contended that un-
der the ruling of the majority many
fraternal societies, labor unions, cor
poration health departments and
commercial clinics also should be
held to be violating the State law.
Pacific Health Corp. charged in
it's petition for review that "the
real and manifest purpose Of the
proceedings, which were Instituted
by the State Board of Medical Ex-
aminers, was to enable the organ
lied medical profession Ito secure
and establish a declaration of law
which would rule out all medical
service organizations whose primary
business is to furnish medical care
to the working and poorer classes
Many cases involving the legality
of cooperative medical units are
understood to be pending in courts
throughout the country. More Of
them are believed certain to come
before the Supreme Court.
Justice Bailey's decision thai
G. H. A. was not illegally practicing
medicine was not appealed by the
Justice Department, but three physi-
clans, members of the Medical So
ciety, have on file another case lr
District Court, charging that G
H. A. is practicing medicine in viola
ton of law. They seek to enjoir
the association from such practice
Insurance Ruling Appealed.
Justice Bailey's decision that G
H. A. was not illegally engaged in the
insurance business has been ap'
pealed by the corporation counsel or
behalf of j. Balch Moor, superin'
tendent of insurance for the District
of Columbia.
The antitrust case, in which
Federal grand jury returned an in
dictment against four groups of or
ganized medicine and 81 doctors
charging violation of the Sherman
Act in restraint of trade agains
G. H. A., still is pending, and prob.
ably will be appealed to the Supreme
Court in one form or another. JUS
tice Proctor now has under advise
ment a motion by the defendant!
to allow the defendants to question
members of the grand jury and tt
peruse the official jury transcript, il
preparation for filing plea II
abatement to "vitiate" the indict
ment.