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Blue Shield Association___

Catholic Hospital Association_.

Caylor-Nickel Hospital, Inc., Charles H. Caylor, M.D., president_.
Center on Social Welfare Policy and Law..

American Institute of Certified Public Accountants:

Roscoe L. Egger, Jr., chairman, Federal Government Executive Com-
mittee;

William Freitag, chairman, health care matters.
American Lung Association, William F. Roberts, acting managing director_
American Osteopathic College of Pathologists, Inc., Allan R. Fox, presi-
dent

American Osteopathic College of Radiology, Martin S. Landis, president__
American Osteopathic Hospital Association, Michael F. Doody, president__
American Physical Therapy Association, Robert A. Teckemeyer, associate
executive director professional relations..
American Society for Medical Technology-

American Society of Internal Medicine, William P. Daines, M.D.

American Society of Clinical Pathologists__.

American Society of Oral Surgeons--

American Speech and Hearing Association---.

Association of Pathology Chairmen, Inc---

California Medical Association__

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519

Chamber of Commerce of the United States, Jan Peter Ozga.
Committee for a Federal Health Bank_.

Daines, William P., M.D., American Society of Internal Medicine_

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533

Crowley, David, executive vice president of the Association of Homes for
the Aging..

Doody, Michael F., president, American Osteopathic Hospital Association__
Egger, Roscoe L., Jr., chairman, Federal Government executive committee,
American Institute of Certified Public Accountants_.
Federal Trade Commission, Michael Pertschuk, chairman_.

Fox, Allan R., president, American Osteopathic College of Pathologists___
Freitag, William, chairman, health care matters, American Institute of
Certified Public Accounts__.

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Goldbeck, Willis B., director, Washington Business Group on Health__. Hale, Randolph M., vice president and manager, Industrial Relations Department, National Association of Manufacturers__.

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572

Hawaii Medical Service Association, Albert H. Yuen, executive vice president

546

Health System Agency of Southwestern Pennsylvania, Matthew Marshall,
Jr., M.D., secretary, board of directors___

547

Homemakers Home and Health Care Services, Ronald E. Rosenberg, vice
president of planning and development__
Hospital Association of New York State_.
Hospital Financial Management Association__

552

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562

Landis, Martin S., president, American Osteopathic College of Radiology--
Marshall, Matthew J., M.D., secretary, board of directors, Health System
Agency of Southwestern Pennsylvania__.

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547

Massachusetts Eye and Ear Infirmary, Charles T. Wood, director_-
National Association of Children's Hospitals and Related Institutions,
Robert H. Sweeney, executive director__

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570

National Association of Manufacturers, Industrial Relations Department,
Randolph M. Hale, vice president and manager.

572

Nightletter for American Medicine, Robert L. Weinmann, M.D., editor and publisher

574

Ozga, Jan Peter, Chamber of Commerce of the United States__.
Personnel Pool of America, Inc., John B. Smith, legal and legislative coun-
sel, Medical Personnel Pool Division__

528

567

Public Citizen's Health Research Group_.

575

Roberts, William F., acting managing director, American Lung Association_ Rosenberg, Ronald E., vice president of planning and development, Homemakers Home and Health Care Services--

473

552

Schwartz, Ronald D---

578

Scott, Michael, of Cox, Langford & Brown, counsel to ASA.

373

Servicemaster Industries, Inc., Kenneth T. Wessner, president and chief
executive officer

Smith, John B., legal and legislative counsel, Medical Personnel Pool
Division, Personnel Pool of America, Inc___

Sweeney, Robert H., executive director, National Association of Children's
Hospitals and Related Institutions__

Teckemeyer, Robert A., associate executive director, professional relations,
American Physical Therapy Association............

Washington Business Group on Health, Willis B. Goldbeck, director___.
Weinmann, Robert L., editor and publisher, Nightletter for American
Medicine

Wessner, Kenneth T., president and chief executive officer, Servicemaster
Industries, Inc.

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Wood, Charles T., director, Massachusetts Eye and Ear Infirmary__
Yuen, Albert H., executive vice president, Hawaii Medical Service Asso-
ciation

563

546

APPENDIXES

Appendix A-Communications received by the committee expressing an in-
terest in these hearings_____
Appendix B-Health Care Expenditures and Their Control, the Health
Staff, Education and Public Welfare Division, Congressional Research
Service, Library of Congress__

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588

ADDITIONAL INFORMATION

Committee press release announcing these hearings..

Text of the bill, S. 1470_.

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The subcommittee met, pursuant to notice, at 8:35 a.m., in room 2221, Dirksen Senate Office Building, Hon. Herman E. Talmadge (chairman of the subcommittee) presiding.

Present: Senators Talmadge, Dole, and Danforth.

Senator TALMADGE. The subcommittee will come to order. Today, we begin 4 days of hearings on S. 1470, the Medicare and Medicaid Administrative and Reimbursement Reform Act. S. 1470, which I introduced joined by Senators Long, Ribicoff, Dole, and 16 other colleagues, is the successor proposal to S. 3205 of the last Congress. S. 3205 was the subject of 5 days of hearings last July.

[The committee press release announcing these hearings and the bill S. 1470 follows:]

[Press release, Committee on Finance, Subcommittee on Health]

FINANCE COMMITTEE ANNOUNCES HEARING ON MEDICARE AND MEDICAID ADMINISTRATIVE AND REIMBURSEMENT REFORM

Senator Herman E. Talmadge (D., Ga.), Chairman of the Subcommittee on Health of the Senate Finance Committee, announced today that the Subcommittee will hold a hearing in early June on the various Medicare and Medicaid administrative and reimbursement reform provisions of S. 1470, introduced by Senator Talmadge on May 5, is cosponsored by a total of 19 Senators.

The hearing will be held beginning at 8:30 a.m. each day beginning June 7 through June 10 in Room 2221, Dirksen Senate Office Building.

Senator Talmadge stated: "S. 1470 is an improved version of S. 3205, a similar proposal introduced in the last Congress. The present bill incorporates constructive testimony received last year during five days of hearings on S. 3205. S. 1470 is designed to deal with, among other things, the problem of the continued explosion in the costs of the Medicare-Medicaid programs. Last year, I pointed out that those programs would cost Federal and State taxpayers more than $38 billion in fiscal 1977. Bad as that was, just one year later these programs are estimated to cost Federal and State governments more than $47 billion in fiscal 1978." Senator Talmadge said, with respect to soaring health costs: "The Congress and the Administration share a common concern; however, I believe we can best control costs by providing hospitals with equitable incentives and with the right kind of penalties."

Requests to testify.-Senator Talmadge advised that witnesses desiring to testify during this hearing make their request to testify to Michael Stern, Staff Director, Committee on Finance, 2227 Dirksen Senate Office Building, Washington, D.C. 20510, not later than Friday, May 27, 1977. Witnesses will be notified as soon as possible after this date as to when they are scheduled to appear.

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 Medical Association, accompanied by Edgar T. Beddingfield, Jr., M.D., chairman, council on legislation__.

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

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

115

Horty, John F., president, National Council of Community Hospitals, accompanied by John Huff, counsel.

186

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

289

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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