Evening star., 1947-06-12
Hospitals Move
To Open Group
Contracts Again
Area Council BIumes
Rise in Costs; Votes
Conference With CHI

Local hospital representatives,
who claim they still are losing
money in their contracts with
Group Hospitalization, Inc, despite
a recent rate increase, yesterday
decided to reopen the contract issue.
The move was recommended at a
meeting of the Hospital Council OF
the National Capital Area, which
also heard a report that a con-
tract soon would be signed with
Health Security Administration,
which provides hospital care for the
poor.
Council members voted to request
a conference with CHI officials
when one hospital spokesman re-
ported monthly loss of $4,000 un-
der the prevailing rates and most
other hospitals said they were los
ing money on subscribers to the
hospital insurance plan.
Rise in Costs Blamed.
The losses were attributed to the
rise in hospital costs that has taken
place since the current rate formula
was devised last February. When
the present formula was announced,
it was estimated 1t would increase
uayments by Group disqualification
to hospitals serving its patients by
s250,O00 year.
Joseph H. Hines, president OF the
agency, said Group disqualification
would have to dig into its reserve
fund this year to meet the higher
payments and indicated member
ship dues probably would have to
be raised for subscribers next year.
Group Hospitalization spokesmen
today said they had received no re,
cent complaints from any hospltai
that the present contract formula
was ineuuitable but would be Will
ing to meet Hospital Council repre-
sentatives to discuss the matter.
Negotiations Near Close.
Meanwhile, the council was in
formed contract negotiations to de-
termine the relationship between
the city'ss hospitals and Health Sc
curity Administration, mdigent nos
nitalization agency, were in their
concluding stage.
"There are no remaining mis-
understandings except In wording,
declared William r. Castle, council
president e..o,,
The council received report from
a special committee appointed to
study the local nursing situation but
took no immediate action on lts
recommendations.
Suggestions Offered.
Headed by J. G. CaposSeia, ao-
ministrator of Emergency Hospital.
the committee offered the following
suggestions:
i. THAT the bill for the licensing
of practical nurses be further
studied and considered but no ac-
tion taken thereon before January
/, 1948"
2, That all hospitals set up an
"in-training" program for nurses
aides, and that the course be de-
signed to meet the requirements Tor
training of practical nurses when
and If the practical nurse licensing
act becomes law.
3. That at least two of the five
members of the present Nurses
Examing Board should be directors
of nursing in hospitals having nurs-
ing schools. II
4. That practical nurses should
be licensed by board including
two representatives each OF the
Graduate Nurses Association and
the Undergraduate and Practical
Nurses Association, and one each
of the Hospital Council, Board OF
Education, medical profession, pub
lie health officials and professional
womens organizations.
S. That an advisory council be ap-
pointed to the Nurses Examining
Board, including the president OF
the Graduate Nurses Association and
two members each from the Hospital
Council, the District Medical So
ciety and local educational leaders,
preferably high school principals.