Evening star., 1943-01-18
Medical Society
Guilt Upheld by
SupremeCourt
Two Units Lose
Appeal in Group
Health Case
By J. A, FOX.

The Supreme Court today up
held the conviction Of the
American Medical Association
and the District Medical Society,
which were charged with seeking
to restrain the operations of the
Group Health Association, a
medical cooperative, in viola
ton of the Sherman Anti-Trust
Law, which forbids restraint of
trade.
The American Medical Associa-
tion had been fined s2500 and the
District Medical Society $500 un-
der the indictment, which was re-
turned in 1898.
The unanimous decision of the
court was read by Justice Roberts.
Justices Murphy and Jackson did
not participate.
Trade Contention Ignored.
The defendant medical groups
have contended that the practice of
medicine is not a trade and that
they were therefore exempt from
Sherman Act prosecution. The
court said that it was not nec.s-
sary to pass on that point, mas
much as Group Health is busi-
ness and that the defendants were
seeking to interfere with that busi-
ness. BY that standard, ii was
added the prosecution under sec
ton 3 of the Sherman Act was
proper.
The defendants also had contend
ed that if they were amenable to
prosecution under the Sherman
Act that they were entitled to the
protection Of the Clayton and Nor
ris-La Guardia Acts which exempts
disputes concerning terms and con-
ditions of employment from trust
law prosecution.
The court held. however, that "it
sens plain enough that the Clayton
and Norris-La Guardia Acts we're
not intended to immunize such q
dispute as is presented in this case"
The indictments against the medi-
cal organizations originally named
% defendants, but the others were
cleared.
The indictments which were pro-
cured by the Justice Department
alleged five offenses. Organized
medicine was accused of restrain
ing Group Health in furnishing
through monthly salaried fun-time
employe doctors - medical care to
its members and their dependents;
restraining members of the Group
Health Association in obtaining
such medical care, restraining
Group Health Association doctors;
restraining other doctors in the
pursuit of their calling, and finally,
restraining Washington hospitals.
Summary of Charges.
Summed up, the charges were
that the defendants kept doctors
out of the Group Health Associa-
ton or from consulting with Group
Health Association doctors, and pre-
vented Group Health Association
doctors from obtaining hospital
facilities here.
On the question of whether the
practice of medicine is trade or
profession, the court said:
Much argument has been ad-
dressed to the question of whether
a physicians practice of his profess
sion constitutes trade under Section
8 of the Sherman Act. In the light
of what we shall say with respect
to the charge alleged in the indict-
ment, we need not consider or de-
eide this question. Group Health Is
membership corporation engaged
in business or trade It's corporate
activity is the consummation of the
cooperating effort Of its members
to obtain for themselves and their
families medical service and hos
payment basis.
The corporation collects its funds
from members. With these funds
physicians are employed and hos
pitalization procured on behalf of
members and their dependents. The :
fact that it is cooperative, and
procures services and facilities on
behalf of its members only, does not
remove its activities from the sphere
Ol business.
Profession Held Immaterial.
"If, as we hold, the indictment
charges a single conspiracy to re-
strain and obstruct this business, it ?
charges a conspiracy in restraint of
trade or commerce within the stat
ute. AS the Court of Appeals prop
erly remarked, the calling or occu-
patton of the individual physicians
charged as defendants is immaterial
if the purpose and effect of their
conspiracy was such obstruction and
restrain of the business of Group
Health.
THE court said: And, of course.
the fact that defendants are physi-
(See MEDICAL, Page A-40