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MEDICARE-MEDICAID ADMINISTRATIVE AND REIMBURSEMENT REFORM ACT

HEARINGS

BEFORE THE

SUBCOMMITTEE ON HEALTH

92-202 O

OF THE

COMMITTEE ON FINANCE
UNITED STATES SENATE

NINETY-FIFTH CONGRESS

FIRST SESSION

ON

S. 1470

TO PROVIDE FOR THE REFORM OF THE ADMINISTRATIVE AND REIMBURSEMENT PROCEDURES CURRENTLY EMPLOYED UNDER THE MEDICARE AND MEDICAID PROGRAMS, AND FOR OTHER PURPOSES

JUNE 7, 8, 9, AND 10, 1977

Printed for the use of the Committee on Finance

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1977

For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402

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CONTENTS

ADMINISTRATION WITNESS

Califano, Hon. Joseph A., Jr., Secretary, Department of Health, Education, Page
and Welfare___

78

American Psychiatric Association, Dave M. Davis, M.D., immediate past
president, Georgia Psychiatric Association, director of psychiatric serv-
ices, Peachtree-Parkwood Mental Health Center and Hospitals, Atlanta,
Ga

American Society of Anesthesiologists, Richard Ament, M.D., president__

Asmus, Harry, president, National Council of Health Care Services, accom-

panied by Jack MacDonald, executive vice president_.

Association of American Medical Colleges, John A. D. Cooper, M.D., presi-
dent, accompanied by David D. Thompson, M.D., director, New York Hos-
pital, and chairman, Council of Teaching Hospitals, and James D. Bent-
ley, Ph. D., assistant director, Department of Teaching Hospitals------

Association of American Physicians and Surgeons, Thomas G. Dorrity,

M.D., director, accompanied by Maurice A. Kramer, assistant executive

director, Washington office__

Association of State and Territorial Health Officials, Dr. Robert P.
Whalen

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Blue Cross Association, Neil Hollander, vice president for health care serv-
ices

Bromberg, Michael D., director, national offices, Federation of American
Hospitals, accompanied by Robert J. Samsel, president___
College of American Pathologists, Tyra Hutchens, M.D., president-elect and
chairman, Department of Clinical Pathology, University of Oregon Medi-
cal School, accompanied by Dr. Jerald R. Schenken, Nebraska Methodist
Hospital

Congress of Neurological Surgeons, Donald H. Stewart, Jr., M.D_.
Cooper, John A. D., M.D., president, Association of American Medical Col-
leges, accompanied by David D. Thompson, M.D., director, New York Hos-
pital, and chairman, Council of Teaching Hospitals and James D. Bent-
ley, Ph. D., Assistant Director, Department of Teaching Hospitals__.
Davis, A. B., Jr., executive vice president and chairman, Board of Directors,
Kansas Hospital Association, accompanied by Frank L. Gentry, execu-
tive director, Kansas Hospital Association____

Davis, Dave M., M.D., immediate past president, Georgia Psychiatric Asso-
ciation, director of Psychiatric Services, Peachtree-Parkwood Mental
Health Center and Hospitals, Atlanta, Ga., on behalf of the American
Psychiatric Association and the National Association of Private Psychi-
atric Hospitals__.

Dorrity, Thomas G., M.D., director, Association of American Physicians and
Surgeons, accompanied by Maurice A. Kramer, assistant executive direc-
tor, Washington office_.

Ecklund, Ruth E., president, American Association of Nurse Anesthetists,
accompanied by Ronald F. Caulk, president-elect; J. Martin Stone, execu-
tive director; and Kenneth Williamson, Washington consultant____
Federation of American Hospitals, Michael D. Bromberg, director, Na-
tional Offices, accompanied by Robert J. Samsel, president__
Filer, John H., chairman and chief executive officer, Aetna Life and Cas-
ualty, on behalf of the Insurance Association of Connecticut, accom-
panied by Burton E. Burton, senior vice president, group division,
Aetna

Finger Lakes Health Systems Agency, Anthony Mott, executive director__
Greene, Tom E., III, vice president, Paine, Webber, Jackson & Curtis, Inc.,

on behalf of Hospital Financing Study Group--

Hacking, James M., assistant legislative counsel, National Retired Teach-
ers Association and American Association of Retired Persons____.
Hansen, Jacqueline, board chairman, Health Systems Agency, Kansas
City

Health Insurance Association of America, Morton D. Miller, vice chairman,
Equitable Life Assurance Society of the United States, accompanied by
William C. White, Jr., vice president, Prudential Insurance Co. of
America

Health Systems Agency, Kansas City, Jacqueline Hansen, board chair

man

Holden, Raymond T., M.D., chairman, Board of Trustees, American Medi-
cal Association, accompanied by Edgar T. Beddingfield, Jr., M.D., chair-
man, council on legislation____.

Hollander, Neil, vice president for Health Care Services, the Blue Cross
Association

Hollister, Hon. David, on behalf of the National Conference of State
Legislatures

Horty, John F., president, National Council of Community Hospitals, ac-
companied by John Huff, counsel

Hospital Financing Study Group, Tom E. Greene III, vice president, Paine,
Webber, Jackson & Curtis_.

Hutchens, Tyra, M.D., president-elect, College of American Pathologists
and chairman, Department of Clinical Pathology, University of Oregon
Medical School, accompanied by Dr. Jerald R. Schenken, Nebraska
Methodist Hospital...

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Insurance Association of Connecticut, John H. Filer, chairman and chief executive officer, Aetna Life and Casualty, accompanied by Burton E. Burton, senior vice president, group division, Aetna.......

Kansas Hospital Association, A. B. Davis, Jr., executive vice president and chairman, board of directors, accompanied by Frank L. Gentry, executive director__.

Levetan, Liane, commissioner, De Kalb County, Ga., and member, Health
an Education Policy Steering Committee the National Association of
Counties, accompanied by Mike Gennell, legislative representative_-_-
McMahon, John Alexander, president, American Hospital Association, ac-
companied by Alan Manzano, vice president and Leo J. Gehrig, M.D.,
senior vice president..

Miller, Morton D., vice chairman, Equitable Life Assurance Society of the
United States, accompanied by William C. White, Jr., vice president,
Prudential Insurance Co. of America, on behalf of Health Insurance
Association of America___

Moran, M. Gail, staff director, Committee on Human Resources, National
Governors' Conference--.

Mott, Anthony, executive director, Finger Lakes Health Systems Agency,
and chairman, Legislative Committee, American Association for Compre-
hensive Health Planning-----

Murphy, Richard E., legislative director, Service Employees International
Union, accompanied by Stanley Wisniewski, research director, Service
Employees International Union__.

National Association of Counties, Liane Levetan, commissioner, De Kalb
County, Ga., and member, Health and Education Policy Steering Com-
mittee, accompanied by Mike Gennell, legislative representative_-_.
National Association of Private Psychiatric Hospitals, Dave M. Davis,
M.D., immediate past president, Georgia Psychiatric Association, direc-
tor of psychiatric services, Peachtree-Parkwood Mental Center and
Hospitals, Atlanta, Ga____.

National Conference of State Legislatures, Hon. David Hollister_-_.
National Council of Community Hospitals, John F. Horty, president, ac-

companied by John Huff, counsel---

National Council of Health Care Services, Harry Asmus, president, ac

companied by Jack MacDonald, executive vice president---National Governors Conference, M. Gail Moran, staff director, committee on human resources_

National Retired Teachers Association, James M. Hacking, assistant legis-
lative counsel
Phillips, Charles D., Ed.D., president, American Protestant Hospital Asso-
ciation

Reba, Richard C., M.D., president, American College of Nuclear Physicians, accompanied by John Dring; and Kenneth L. Nicolas, executive staff

Schwinger, Harold N., M.D., chairman, Board of Chancellors, American
College of Radiology, accompanied by Fredric D. Lake, M.D., president;
J. T. Rutherford, legislative counsel; and Otha W. Linton, director,
governmental relations

Seidman, Bert, director, Social Security Department, AFL-CIO, accom-
panied by Robert McGlotten, Legislative Department, and Richard Shoe-
maker, Social Security Department__
Service Employees International Union, Richard E. Murphy, legislative
director; accompanied by Stanley Wisniewski, research director__.
Stewart, Donald H., M.D., American Association of Neurological Surgeons_
Thevenot, Bruce D., administrator, Government Services Division, Ameri-
can Health Care Association....

Whalen, Dr. Robert P., on behalf of the Association of State and Territorial
Health Officials

COMMUNICATIONS

American Association of Homes for the Aging, David C. Crowley, executive

vice president

American College of Emergency Physicians-
American Dental Association__.

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