Evening star., 1941-02-12
Medical
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representatives of the medical So
| ciety, some of whom later were in
dicted, and the officials of G.. H. A.
Social Schemes" Cited.
DR.. Growers statement went into
a description of the change which
he said had come about in the
medical practice in Germany, France
and England, who formerly were
leaders in medical science, because
of various social schemes" Now,
the statement said, leadership has
passed from Europe where such
| social schemes have been tried Ito
the good old U. S. A."
During croSs-examination of Mr..
Penniman Defense Counsel Leahy
read from the words of DR. Henry
c. MacAtee, who is not a defendant
in the case.
This physician had told the meet
ing that in many States it was a
violation of law for corporations
to practice medicine and that if
some members of the medical So
cietles here had signed contracts
to practice medicine for Group
Health Association, corporation,
the question of their legality might
be raised later on.
Cards on the Table
For this reason, he had pointed
out, certain information had been
requested of G.. H. A. of the medical
society regarding the contracts.
Questioned by Mr. Leahy. Mr..
Penniman testified that G. H. A.
had turned over all the information
requested except copies of such con-
tracts and the bylaws and consti-
tuition of G. H A.
The contracts of the doctors them
selves had been formally laid be-
fore the medical society, he testi-
fed. when Dr. Allen E. Lee and DR..
Mario Scandiffio, Group Health
staff doctors, had been brought to
trial" before the medical society
in connection with their group
practice.
Defense counsel quoted from the
transcript to show that Mr. Penni-
man had said G. H. A had laid
all its cards on the table" then
drew from him the admission the
contracts had been withheld at the
meetings.
The story of the formation Of
Group Health Association, medical
cooperative against which organized
medicine is charged with forming a
conspiracy in restraint of trade, was
unfolded through hours of testi-
mony yesterday by both Mr.. Pen
niman and by Raymond R. Zim-
norman of the Civil Service Com
mission. also one of the founders
of G. H A. Both formerly were
with the Home Owners Loan Corp.
Late in the day defense counsel
launched a counter offensive in the
form of severe criticism of the al
legged failure of Group Health Asso-
citation and its officers to Coop
crate with the medical profession.
Becomes Major Point.
The subject of lack of co-opera-
tion with each other developed into
one of the major points at issue be-
tween the Group Health Association,
which is not officially party to the
suit, and the organized medical pro-
fession, which is facing charges OF
conspiring against G.. H. A., in
violation of the Sherman Antitrust
Act
High lights of the prosecution
testimony elected from the two
witnesses by Mr.. Levin and Grant
w. Kelleher. assistants to the At
torney General, were as follows:
&c. H. A. first offered its medi-
cal dictatorship to DR.. Thomas E.
Neill, president of the District Med
ical Society, one of the defendants,
who did not take the post but be-
came highly critical later on Of
the prepayment" phase of Group
Health Associations medical care.
Meet With Officers.
2. officials of G. H. A. held sew
eral meetings with officers of the
medical society. including at least
one luncheon, at which the princi-
pies and general formation of G.
H. A. were outlined, and the CO.
operation of the medical society
was requested.
g.. G. H. A. conferred with the
su; geons general of the Army and
Navy in a search for a medical
director, offered the post to Col
Glenn I. Jones of the United States
Army Medical Corps, who did not
take the post. Prosecution promised
to show how G. H. A. was de
prived" of mis- services.
4. DR.. William c. Woodward of
the A. M. A. was charged by Mr..
Zimmerman with having predicted
the A. M. A. would put an END"
to G. H. A.
One medical society surgeon, DR..
H. H. Schoenfeld, was charged with
refusal to operate on a c.. H. A.
patient, Miss Mary Frances Steuart,
until she had been admitted to the
hospital as private patient of DR..
Allan Lee.
On the other hand, defense coun-
sci in sharp cross examination of
the two witnesses of the day,
charged that:
/. Although the Medical Society
and its officials repeatedly sought
information from Group Health
Association as to its bylaws, con-
stitution, contract with the Home
Owners Loan Corp. and contract
with its subscribers, none of these
documents ever was officially turned
over to the Medical Society by
officers of G. H. A.
2. Group Health Association while
4