PHYSICIANS TRAINING FACILITIES AND
HEALTH MAINTENANCE ORGANIZATIONS

HEARINGS

BEFORE THE

SUBCOMMITTEE ON HEALTH.(

4. S. Congress, Senate, OF THE

^

COMMITTEE ON

LABOR AND PUBLIC WELFARE
UNITED STATES SENATE

NINETY-SECOND CONGRESS

FIRST SESSION

ON

S. 935, S. 703, S. 837, S. 1182, S. 1301

BILLS TO AMEND THE PUBLIC HEALTH SERVICE ACT TO IN-
CREASE AND EXPAND PHYSICIAN TRAINING, HEALTH CARE
GENERALLY, AND HEALTH MAINTENANCE ORGANIZATIONS

KF26

.L354
1971e

Copy 2

COMMITTEE ON LABOR AND PUBLIC WELFARE

HARRISON A. WILLIAMS, JR., New Jersey, Chairman

JENNINGS RANDOLPH, West Virginia
CLAIBORNE PELL, Rhode Island
EDWARD M. KENNEDY, Massachusetts
GAYLORD NELSON, Wisconsin
WALTER F. MONDALE, Minnesota
THOMAS F. EAGLETON, Missouri
ALAN CRANSTON, California
HAROLD E. HUGHES, Iowa

ADLAI E. STEVENSON III, Illinois

JACOB K. JAVITS, New York
WINSTON L. PROUTY, Vermont
PETER H. DOMINICK, Colorado
RICHARD S. SCHWEIKER, Pennsylvania
BOB PACKWOOD, Oregon

ROBERT TAFT, JR., Ohio

J. GLENN BEALL, JR., Maryland

STEWART E. MCCLURE, Staff Director
ROBERT E. NAGLE, General Counsel
ROY H. MILLENSON, Minority Staff Director
EUGENE MITTELMAN, Minority Counsel

SUBCOMMITTEE ON HEALTH

EDWARD M. KENNEDY, Massachusetts, Chairman

HARRISON A. WILLIAMS, JR., New Jersey PETER H. DOMINICK, Colorado

Javits, Hon. Jacob K., a U.S. Senator from the State of New York..

Duval, Dr. Merlin D., Assistant Secretary for Health and Scientific Affairs

Department of Health, Education, and Welfare, accompanied by Dr. John

Zapp, Deputy Assistant Secretary for Legislation; Dr. Vernon Wilson,

Administrator, Health Services and Mental Health Administration; Dr.

Robert Van Hoek, Associate Administrator for Operations, Health Serv-

ices and Mental Health Administration; and Beverly Myers, Assistant

Administrator for Resource Development, Health Services and Mental

Health Administration; and professional staff members---

WEDNESDAY, JULY 21, 1971

Glasser, Melvin A., director, Social Security Department, International

Union, United Automobile Aerospace & Agricultural Implement Work-

ers of America (UAW), accompanied by Max Fine, executive director,

Health Security Action Council; and Jack Beidler, legislative director,

United Automobile Workers____

Cohelan, Jeffrey, executive director, Group Health Association of America,

accompanied by Louis Segadelli, associate executive director of GHAA,

and W. Palmer Dearing, M.D., medical consultant for GHAA__.

Prouty, Hon. Winston, a U.S. Senator from the State of Vermont, concern-
ing the testimony on Dr. John E. Wennberg--

Wennberg, Dr. John E., coordinator, Northern New England Regional Med-

ical Programs, assistant professor, College of Medicine, University of

Vermont

104

108

148

188

202

202

STATEMENTS

Cohelan, Jeffrey, executive director, Group Health Association of America,

accompanied by Louis Segadelli, associate executive director of GHAA,

and W. Palmer Dearing, M.D., medical consultant for GHAA-----

Dominick, Hon. Peter H., a U.S. Senator from the State of Colorado----

Duval, Dr. Merlin D., Assistant Secretary for Health and Scientific Affairs,

Department of Health, Education, and Welfare; accompanied by Dr.

John Zapp, Deputy Assistant Secretary for Legislation; Dr. Vernon Wil-

son, Administrator, Health Services and Mental Health Administration;

Dr. Robert Van Hoek, Associate Administrator for Operations, Health

Services and Mental Health Administration; and Beverly Myers, As-

sistant Administrator for Resource Development, Health Services and

Mental Health Administration; and professional staff members-----

(III)

Glasser, Melvin A., director, Social Security Department, International

Union United Automobile Aerospace & Agricultural Implement Work-

ers of America (UAW), accompanied by Max Fine, executive director,

Health Security Action Council; and Jack Beidler, legislative director,

United Automobile Workers__.

Prepared statement__

Javits, Hon. Jacob K., a U.S. Senator from the State of New York___

Medical Committee for Human Rights on Health Maintenance Proposal---

Prouty, Hon. Winston, a U.S. Senator from the State of Vermont, concern-

ing the testimony on Dr. John E. Wennberg---.

Wennberg, Dr. John E., coordinator, Northern New England Regional Med-

ical Programs, assistant professor, College of Medicine, University of

Vermont

Page

148

173

104

209

202

202

ADDITIONAL INFORMATION

Articles, publications, etc. :

"Profit Groups Who Are Interested in or Who Are Forming HMO's,"
by Vernon E. Wilson, M.D., Administrator, Health Services and Men-
tal Health Administration, from Robert Van Roek, M.D., Associate
Administrator for Operations (with attachments) --
Quality control and peer review___

Questions and answers:

138

134

Questions submitted by Senator Jacob K. Javits to Jeffrey Cohelan,
executive director, Group Health Hospitalization of America, Inc.,
with responses__-

200

Selected tables:

UAW active workers and families enrolled in comprehensive prepaid
group practice plans, spring-summer 1971..

153

APPENDIX

"Report on Licensure and Related Health Personnel Credentialling, June

1971," from Department of Health, Education, and Welfare__

Questions submitted by Senator Jacob K. Javits with Department of

Health, Education, and Welfare response.......

211

453