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unnecessary duplication of those services and to encourage public and private third-party payors not to reimburse hospitals that consistently fail to adhere to such standards.

--Working with local and areawide health planners to reorganize emergency services in communities served by two or more hospitals to eliminate duplicative facilities and services excessive to the needs of communities.

--Assessing the financial and personnel resources of areawide health planning agencies and taking appropriate actions, as necessary, to assist the agencies to increase these resources, particularly to improve their capability to determine health services and facility needs and develop and promote plans to fulfill those needs.

MATTERS FOR CONSIDERATION BY THE CONGRESS

Some health care providers have changed traditional health care demand and utilization patterns, decreasing the need to construct acute care and other types of health facilities. The economic benefits emanating from these changes and the means by which such changes have been effected, as discussed in this report, may be of particular interest to the Congress in its consideration of legislative health care proposals, such as those providing for the reorganization of the existing health care delivery system and for programs of national health insurance.

EXHIBITS

117

EXHIBIT A

COMPARISON OF INCREASES IN MEDICAL CARE PRICES AND ALL ITEMS
CONSUMER PRICE INDEX, 1967-1971

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Grants for Construction of Health Care Facilities (H111-Burton)

Loan Guarantees with Interest Subsidies (Hill-Burton)

Direct Loans Program (M111-Burton)

Grants for Regional Medical Programs

Grants for Health

Services Research, Development, and Demonstration Grants for Contruction of Health Education Facilities--Health Professions

Grants for Construction of Health Education Facilities--Mursing Schools

Grants for Construetion of Teaching Facilities--Allied Health Professions Personnel

Grants for Construction of Medical Library Facilities Grants for Construction of Health Research Facilities

Total

Constructing and modernizing

hospitals and other health facilities. Grant assistance is provided to public and private nonprofit hospitals, public health conters, long-term care facilities, outpatient facilities, and rehabilitation facilities. Guaranteeing loans to private, nonprofit agencies for constructing and/or modernizing health care facilities. Subsidies are made to reduce the net effective interest rate by 3 percent paid for private, nonprofit facilities.

Making direct loans with

3 percent interest subsidies for constructing and/or modernising publicly owned health facilities. Constructing facilities for regional medical programs of research, training, and denonstration activities. Constructing experimentally designed health facilities.

Constructing and modernising teaching facilities for the. training of physicians, pharmacists, optometrists, podiatrists, veterinarians, dentists, and professional public health personnel. Constructing and modernizing training facilities for BUTSCO.

Constructing new, replacing, or rehabilitating existing fo cilities for training of personnel in professions related to health care. Constructing now, renovating. and expanding medical 11brary facilities.

Constructing fou and replacingold facilities for national research programs in the health field.

Health Services and Mental Health Administration, HIM.

do.

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