Evening star., 1948-06-29
The Hospital Crisis

The seriousness of the financial crisis
faced by Washingtons volunteer hospitals
is emphasized by the greatly increased
request for funds which they have just
submitted to the United Community SerV-
ices, formerly the Community Chest. The
hospitals are asking for 81 ,76O for lS4S
nearly double the amount asked 1or 1916
and almost three times what actually was
allotted How the request is met may
determine whether the hospitals are 10
continue to rely on the UCS for INDECENT
funds or are to decide to pull out in favor
of an independent drive.
The District Medical Society has given
its members-and the public as Well-a
timely diagnosis of the financial ills which
afflict the hospitals. In an editorial on the
subject in its current journal, medical
Annals" the society has proposed a
course of treatment that should be given
careful consideration by every one con-
cerned with effecting cure That means
not only the hospitals themselves out
those who support them by direct ices,
bv disqualification insurance payments, by
contributions to the UCS and by taxes.
AS the society points OUT there are four
classes of patients involved, one way or
another, in the present troubles OF Ihe
hospitals There are the patients VINO pay
their own bills in full, those VINO nave
prepaid disqualification insurance, those
who must depend on the Chest or other
organizations for financial aid and the
"tax-eligible cases" financed by govern
mental subsidy. Only one OF these groups
has been carrying its full share OF the
load-and more. The patients VINO pay
their own bills have, too often, been pay
ing part of the bills of other patients TOO
This is because hospital rates have hao
to be adjusted to cover deficits reSuitlng
from inadequate payments from otner
groups. The society is correct IN CONTEND
ing that no patient should have to pay
premium because of the failure OF others
to meet their full Obligations
And the society is right in holding tnat
prepaid insurance plans, the UCS ana tile
District Government should not Saoole tile
hospitals-and hence paying patients
with any part of the cost of hoSpitahzins
patients supposedly covered by tnese
systems of payment. If prepaid insurance
does not take care of the full cost OF
services the insured patient should unoer-
stand that he-not the hospltal-Wlll nave
to make up the difference. The proplem Is
even more difficult with respect TO patlenIs
sponsored by the Health Security Agency
of the United Community Services or by
governmental subsidies. In the past the
Chest has been unable to pay its proper
share of the cost. There is no assurance
II 70 RI In
future. The District, too, has failed TO
meet it's responsibilities The financial
troubles of the District are no less acute
than those of the hospitals.
The Medical Society's prescription for
putting the local hospitals back on tnelr
feet calls, first of all, for reorganization
of these institutions along real business
lines Modern cost accounting systems
should be installed. it says. Collateral
functions not essential to hospital service
should be financed independently, not out
of regular rates. In short, the hoSpltalS
owe it to their community and to their
natrons to make sure that they are oper-
ating on an efficient basis. That Is just
common sense but it needs saying.
The society would solve the INDECENT
patient problem by having the hospitals
withdraw from the United Community
Services and hold their own fund drives.
But now does not seem to- be propitious
time for a move of this kind. With the
Chest starting out under reorganized set
up and struggling to regain lost ground in
the community, the more logical plan
would be to give the UCS chance to see
what it can do for the hospitals. A
mass detection by the hospitals at this
critical moment would be severe blow to
the UCS and might not cure the money
troubles of the hospitals. 1t may well be
that such drastic action will be necessary
eventually to keep our hospitals above
water-bl.; it should be taken only as
last resort.