the emergence of hospitals as the focal point for the development of a more comprehensive health care system. We are proud of our record in the development and implementation of the medicare program. The American Hospital Association joined in the deliberations that were initiated by this committee and that culminated with the enactment of Public Law 89-97. Since that historic action in 1965, we have been vitally involved with medicare, as evidence by the fact that most of the hospitals in this country are now certified to participate in the program. In addition, we feel that the coordination and cooperation reflected in the ongoing relationship between hospitals and the Social Security Administration has benefited the Nation's elderly citizens through improved health care. MEDICARE PROBLEMS The medicare program has not been without problems. We enumerate some of these in our statement. Public Law 89-97 was constructed on the concept of preferential treatment of large third-party purchasers of health care services and thus revealed a fundamental weakness in health care financing. In 1969, the statement on the financial requirements of health care institutions and services was developed as a response to this problem. In discussing the implementation of the statement, the AHA's board of trustees concluded that policies so broad in their implications and so fundamental to the provision of institutional health services called for a major review of the health services system. The results of that review, along with other efforts stemming from the statement, form the basis for our testimony today. NEW COURSE Through these hearings, this committee is now embarking on a much broader course a health program for all citizens. The American Hospital Association has a number of important recommendations to make that we believe will help to shape the direction and the form this course should take. Hospitals and other health care institutions are in a unique position to assist in the development of this health program. We have devoted more than 2 years of intensive study and effort in the development of these recommendations, and we believe that these proposals are of extreme importance in your consideration of the necessary changes in the delivery and financing of health care services. DEVELOPMENT OF AHA POLICY The American Hospital Association has developed a broad framework for a system of delivering and financing health services, embodied in the recently approved policy statement on provision of health services. That document is an attachment to our strength. It is a blue-covered book. Mr. BURKE. Do you wish to have that included in the record? Mr. BURKE. Without objection, it will be included. (The policy statement on provision of health services booklet follows:) AMERICAN POLICY STATEMENT ON PROVISION OF HEALTH SERVICES Approved by House of Delegates HOSPITAL ASSOCIATION AMERICAN HOSPITAL ASSOCIATION 840 North Lake Shore Drive Chicago, Illinois 60611 FOREWORD The statement set forth in these pages is the official policy position of the American Hospital Association on the provision of health services. The first step in the active development of this policy was the appointment of a special committee to study this matter. The committee was given a broad charge and submitted its recommendations to the Board of Trustees in November 1969. The Board studied those proposals and recommended that the concept be adopted in principle by the House of Delegates. The House took this action on January 27, 1970. The Board recognized that more detailed study of such a sweeping proposal was necessary before the Association could take final action and a second special committee was named by the Board to receive comments from the membership and other interested bodies. This committee, in turn, made recommendations to the Board of Trustees. After detailed analysis, the Board proposed to the House of Delegates adoption of the policy statement printed herewith. The House debated the matter at its meeting in Chicago and on August 24, 1971 approved the policy statement. This is now the official policy and supersedes all other Association statements on this subject. EDWIN L. CROSBY, M.D. Executive President JACK A. L. HAHN October 1971 Part I GOALS AND PROGRAMS As a nation we must provide better quality, more convenient health care for all the people, at reasonable cost, and in a manner in keeping with human dignity. This must be done because we accept one basic, irreducible principle: Health care is an inherent right of each individual and of all the people of the United States. (1) it is a function of health care to enhance the dignity of the individual and to promote better community life for all; (2) it is a function of government to assure the preservation and maintenance of the health of all the people; (3) each individual shares the responsibility for protecting his own health and for obtaining health care when required; (4) health care must be available without regard to any person's ability to pay and without regard to race, creed, color, sex, or age; (5) health services must be so organized and located that they are readily accessible to all. This basic principle and its corollaries can be best and most rapidly implemented through a new nationwide system for the delivery of health services, uniting all the health resources of the United States for better care. The following specific goals are endorsed: 1. A system for the delivery of health services must be developed which has as a primary objective the optimum health care of each and every person. Untreated illness in the community must be sought out and treated. 2. The system for the delivery of health services must focus on individual needs, must be personalized through the skills and |