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Comparative transfer from "Hospital and medical facility research".

1962 enacted appropriation amended.. 1963 appropriation estimate____.

Total change---

Increases:

A. Program Increases:

1. Increase in amount proposed for construction of
medical facilities, etc., authorized under part G
of the act_.

2. Additional amount proposed for operations and tech-
nical services:

Personnel compensation (24 posi-
tions)

$211, 500, 000

8, 117, 000

219, 617, 000

176, 220, 000

-43, 397, 000

10, 272, 000

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$219, 900

8,000 20, 100

248, 000 10, 520, 000

Decreases:

A. Reduction in amount proposed for construction of hospitals, etc., authorized under part C of the Public Health Service Act__

B. Reduction in amount proposed for hospital and medical facility research program_

Subtotal, decreases_

Total net change requested____

50, 000, 000

3, 917, 000

53, 917, 000

43, 397, 000

EXPLANATION OF CHANGES

Construction of medical facilities, etc., under part G of the act

Within the total amount proposed for hospital and medical facilities construction, $70 million is being requested for the part G program. This represents an increase of $10,272,000 over the $59,728,000 made available for 1962. The $70 million requested is the full amount authorized to be appropriated for nursing homes, chronic disease hospitals, diagnostic or treatment centers, and rehabilitation facilities. The requested increase will continue the effort being made to bring these facilities into better balance with general hospitals.

Operations and technical services

An increase of $248,000 is requested to provide the basic staff requested for regional operation of the Hill-Burton program, to provide increased technical assistance and consultation to State agencies, and to accelerate the development and updating of needed guide material relating to health facility planning, design, construction, and operation.

Construction of hospitals, etc., under part C of the act

A total of $100 million is being requested for this phase of the program. This is $50 million less than the amount made available for 1962. The portion of these funds which will be used by the States for general hospital construction when combined with funds used for this purpose outside the Hill-Burton program, will be sufficient to take care of the beds required for the annual population increase and replace those beds which annually become obsolete.

Hospital and medical facility research

A total of $10 million was made available for this activity in 1962 against which a reserve for savings in the amount of $1,883,000 was imposed. This left $8,117,000 for research activities. The $4,200,000 requested for 1963 represents a decrease of $3,917,000. The funds requested will provide a volume of research study and experimental construction projects which is substantially in line with the gradual expansion of the hospital and medical facility research effort as originally planned.

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Allocations to States for construction of hospital and medical facilities

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Tentative allocations to States for construction of hospital and medical facilities for fiscal year ending June 30, 1963

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Total.

Alabama.
Alaska

3,085, 298

200, 000

Arizona

Arkansas.

California.

Colorado

Connecticut.

Delaware.

District of Columbia.

$170, 000, 000 $100, 000, 000 $70, 000, 000 $20, 000, 000 $20, 000, 000 $20, 000, 000 $10, 000, 000

5, 196, 887 550,000 1,416, 052 3, 111, 822 8, 750, 022 1,619, 758 1,017, 865 550,000 550,000

840, 684
1,847, 433
5, 194, 729

961, 621
604, 288
200,000
200,000

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Senator HILL. Dr. Haldeman, we will be glad to have you proceed in your own way.

Ďr. HALDEMMAN. Thank you, Mr. Chairman. If I may, I would like to submit my statement for the record and try to confine my remarks to just the highlights.

Senator HILL. All right, Doctor, your statement will be inserted in the record at this point.

(The statement referred to follows:)

STATEMENT BY CHIEF, DIVISION OF HOSPITAL AND MEDICAL FACILITIES, ON HOSPITAL CONSTRUCTION ACTIVITIES, PUBLIC HEALTH SERVICE

Mr. Chairman and members of the committee, the purpose of the Hill-Burton program is to assist the States in providing adequate hospital and medical facility services to the people. The basic methods used in operation of the construction program have not changed. First, State agencies must develop a comprehensive plan designed to meet the hospital and medical facilities needs of the States; secondly, construction projects are approved in the order of priority. Research and demonstration studies are carried out as a means of developing new organizational patterns of providing hospital services and improving the operation, utilization, and design of health facilities. In addition, the Congress broadened the research program during the last session to authorize a program of grants for experimental and demonstration construction and equipment projects.

1963 ESTIMATE

The total request for hospital and medical facilities construction, for the research, demonstration, and experimental construction programs, and for salaries and expenses is $176,220,000. This amount will provide $100 million for construction of hospitals and public health centers; $70 million for the construction of nursing homes, diagnostic and treatment centers, rehabilitation facilities, and chronic disease hospitals; $4,200,000 for research and demonstration studies and experimental construction; and $2,020,000 for salaries and

expenses.

PROPOSED PROGRAM FOR 1963

Construction.-The $170 million requested for construction purposes will enable the States to start the construction of approximately 700 health facility projects involving over 22,000 hospital and nursing home beds and almost 250 units for various types of outpatient care. This projection is based on the assumption that State agencies will program the construction of the different kinds of health facilities during 1963 along the same lines as construction was programed during 1959 and 1960.

At

Substantial progress has been made during the last 15 years in reducing the deficit of general hospital beds and facilities, particularly in rural areas. the same time, however, State agencies report that many areas require additional general beds and facilities and that the demand of communities for Hill-Burton assistance for general hospital facilities is still acute. While a portion of this need and demand may be attributed to the annual population increase of 3 million persons, it seems quite clear that a deficit of general hospital services and beds still exists.

The same substantial progress, however, has not been made in the construction of other health facilities, such as long-term care, rehabilitation, and outpatient facilities. For this reason, the full amounts authorized to be appropriated for nursing homes, chronic disease hospitals, diagnostic or treatment centers, and rehabilitation facilities are included in this budget request. Your approval of this request will continue the effort being made to bring long-term and outpatient care facilities into better balance with general hospitals.

Facilities and beds constructed under the Hill-Burton program.-As of December 31, 1961, approximately $1.6 billion in Federal funds had been committed to 5,888 projects costing a total of more than $5 billion. Of these projects, 4,381 have been completed, are in operation, and are serving their communities; 1,249 are under construction, and the remaining 258 are in the preconstruction stages. Completion of these projects will add 248,809 hospital and nursing home beds, and will result in the construction, expansion, or remodeling of 1,014 public health facilities, 427 diagnostic or treatment centers, and 202 rehabilitation facilities.

Research. The amount of $4,200.000 is requested for the expanded research program. A portion of these funds will be used for the construction of units in health facilities which are experimental in nature and hold promise of improving the functional layout or operational efficiency of such facilities and reducing the costs of construction, maintenance, or operation. However, the bulk of the funds will be used for continued research, experimentation, and demonstration studies relating to hospital services, facilities, and resources.

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