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Laven't gotten the money yet?

、 ́ ́e status of your application, if I may ask? ve several plans. The one they prefer is A participation, in which you would find a who would lend the money and service the *d give a guarantee of 75 to 90 percent, and eve 1 to 2 percent brokerage.

ng to note that several of the lending agencies eard of the SBA. So, they questioned me as to

a good risk. They liked the FHA type of loan. saed resort, and it is coming, we can go to the SBA cord the total sum on 6 percent interest for a period not eat the loan need not be amortized.

t can deal with them, if it gets down to that point. the best instrument, in my judgment. We should A years and we should not be required to pay any 6 perTwenty to twenty-five years is what we really need. 1. If you had a lower rate of interest and a longer

the loan would stretch out over that period of time. Yes, sir; 20 years→→→

11. Or you could amortize it out and pay a reasonable

A: Yes, sir; absolutely. We don't want to be given any

132 €, 1DW VTER. Do you have any other questions?

o Hutt, No. That is all.

GAL GOLDWATER. Would you study that and, within the next iek or so, or within the next week, at your convenience, let the comwe know what you think of that language?

may be mistaken, but I think your problem is answered in the language there, at least as far as answering the problem of the Government being in competition with the private nursing home. Ponk the committee would appreciate your opinion on that, bevane we have to consider that, too.

A Muse I shall counsel with our executive director.

N, TYAFOR GOLDW VIER. Do you have any other statement to make? AD MUSE No; we have not, Mr. Chairman, except to thank you fou the opportunity to have appeared before you and to congratulate Pus committee, as we did Representative Wolverton's committee, for the most sincere efforts they are making relative to the public health juvs rum of the United States.

mator Hur. Didn't you have some other statements or some other Witne ef

A Mose Thave a statement from a young lady from Washington, M La Forde Murphy, that I would like to have extended upon the record and if it would be possible to presume upon the comhotice it is a very short statement-I would like to ask that she address this committee.

Nenator CooLDWATER. My problem is that I have an appointment at The White House in 15 minutes.

If you would care to be chairman and remain here, Senator-
Serraton Hira. I will be happy to do so.

Senator GoLDWATER. I hate to leave.

Senator HILL. You have to be on time.

Mr. MUSE. Mr. Chairman, gentlemen, this is Mrs. Lucia Forde Murphy from the State of Washington.

Senator HILL. Mrs. Murphy.

STATEMENT OF MRS. LUCIA FORDE MURPHY, REPRESENTING THE INLAND EMPIRE ASSOCIATION OF LICENSED NURSING HOMES

Mrs. MURPHY. Thank you very much.

Iam Lucia Forde Murphy from Spokane, Wash., Mr. Chairman. I am here in the Nation's Capital at the request of certain nursinghome administrators who comprise the Inland Empire Association of Licensed Nursing Homes, with headquarters in Spokane, Wash. The group is an affiliate of the Washington Association of Licensed Nursing Homes.

I have traveled across the country for the privilege of joining with others to appear before and alert your committee, Mr. Chairman, to certain aspects of S. 2758 that seem ill advised, economically unfeasible, and socially unsound.

That there has not been sufficient research into the whole area of nursing homes and the health problems that they must solve is adequately testified to by what the Secretary of Health, Education, and Welfare has not been able to tell this committee or Representative Wolverton's committee in the House.

I urge you, Mr. Chairman, when you reread the Secretary's testimony you will discover little factual data on the construction cost of nursing homes; vague reference to the cost for per-patient day care. This cost is estimated between $2 per day to $8 per day, leaving us in doubt as to whether the Secretary's committee was referring to boarding homes for the aged or nursing homes.

I think that as you reread the testimony concerning nursing homes you will find that the basis of the study is predicated on trends, theories, estimates, and speculation.

On this basis you are being asked to venture into a field completely foreign to the original intent of the Hill-Burton Act.

As was pointed out by Representative Pelley when he addressed the House of Representatives on March 9, there is no need for Federal grants of money to care for the aged population in the State of Washington. At that time he said:

Dr. Cronin, of the Department of Health, Education, and Welfare assured the in our State of Washington a good job is being done by private enterprise.

From an economic point of view, this bill would appear to waste your taxpayers' money, at least as far as the State of Washington is concerned. That portion of $2 million that would be made available to individual States for survey, contemplated under the terms of this bill, is not needed in my State.

In keeping with the initiative of a well-informed citizenry, there has been formed in Spokane, Wash., the Spokane Gerontology Volunteers composed of citizens representing 100 local organizations and who have already begun a survey into the needs of our elder citizens. In that connection, Mr. Chairman, I would like to submit this chart for the record.

Senator HILL. It may be received.

(The chart referred to is as follows:)

SPOKANE GERONTOLOGY VOLUNTEERS

"Every man should be encouraged to live his whole life"

[blocks in formation]
[graphic]

1. Service to Receptive Homos Only

2. Volunteers must maintain service Record.

3. Volunteer Worker must have ID Card

Workers must be screened by Organization Representative.
5. Each Organization must serve under its own identity.
6. Service awards presented appropriately

Mrs. MURPHY. The $2 million appropriation for survey is unnecessary as most facts and figures are on hand in the offices of the various States and Federal agencies.

Upon completion of this enterprising venture, these volunteers will begin to share the problems of their fellow men.

These volunteers are not earning dollars, but certificates of which they are most proud, showing man-hours given.

This is an example of what communities of enterprising people will and can do without the spending of our tax dollar.

It is also with some interest that we in the State of Washington note the estimate of $8,000 made by the Department of Health, Education, and Welfare as the per bed cost of construction for what must be presumedly the first-class nursing homes. However, in Spokane the latest places for a 150-patient home will be built for $2,500, a 2-bedroom, or $4,500 complete with furniture and 2-piece plumbing. Senator HILL. Two piece what?

Mrs. MURPHY. Two-piece plumbing in each one.

Senator HILL. Plumbing.

Mrs. MURPHY. Socially, the whole concept of making generous Federal grants to so-called nonprofit groups is neither desirable nor within the scope of good sociological planning.

The idea of a nursing home is everything that those words imply, and specifically, they imply professional nursing care in a home atmosphere.

It is easy to become too altruistic about the problems of our aged groups, and I do not mean to do this. What I mean to tell this committee is that in the State of Washington we have approached and, I believe, solved our problems realistically.

In our homes in Washington we have created an atmosphere for our aging population that we hope, and in most cases know, is a substantial substitute for the home life which our patients, either because of neglect or misfortune, have been deprived.

Our nursing homes are, with the approval of local zoning authorities and town and city officials, located very humanly within the heart of our cities and townships. Here they are within easy communication of their families, local town and city officials, and in most cases close to medical and hospital facilities in the event these facilities are needed.

Mr. Chairman and gentlemen, the Hill-Burton Act, we in Washington feel, has served its most worthwhile purpose in rural areas. An extension of this act, we feel, into the field of nursing home care will be the first step toward integrating nursing homes with hospital facilities and thereby destroying the very concept of the nursing

homes.

Such integration is bound to bring the nursing homes into the heart of the metropolitan area wherein are usually situated the hospital facility, and this very great and humane measure, the Hill-Burton Act, will have deviated from its original purpose, from service to the people to the paradoxical purpose of causing the aged and chronically ill to go where the facilities are in order to make them economically

sound.

Thank you.

Senator HILL. How many homes do you have in the State of Washington, Mrs. Murphy?

Mrs. MUPHY. We have 262 licensed nursing homes, I think.
Senator HILL. Two hundred and sixty-two?

Mrs. MURPHY. Two hundred and sixty-two. We have 51 in
Spokane.

Senator HILL. Fifty-one homes in Spokane.

How many beds do you have altogether: do you know?

Mrs. MURPHY. Eight thousand; a little more than eight thousand.
Senator HILL. Eight thousand.

Mrs. MURPHY. There are 500 vacant today.
Senator HILL. Five hundred vacant beds today?
Mrs. MURPHY. Five hundred.

Senator HILL. Five hundred vacant beds today.
What do you attribute those vacancies to?

Mrs. MURPHY. A great many of the aged people have been put in what they call senile institutions, which are State regulated. Senator HILL. Do you have any questions, Mr. Sneed?

I want to thank you very, very much.

Mrs. MURPHY. Thank you very much.

Senator HILL. That concludes the presentation for the American Association of Nursing Homes, does it?

Mr. MUSE. Yes, sir.

Senator HILL. Now, I noticed on the list here was a Mr. Latham.
Is he with your group?

Mr. MUSE He is here, Mr. Chairman.

Senator HILL. Mr. Latham, I don't want to have to rush you, but I am going to have to leave here very shortly. I suppose you are here all the way from Indiana and you want to be heard.

Mr. LATHAM. Yes; we in Indiana usually like to be heard, and we are kind of loud sometimes.

Senator HILL. You may proceed, Mr. Latham.

STATEMENT OF HARRY T. LATHAM, JR., LEGAL ADVISER TO EXECUTIVE DIRECTOR OF THE INDIANA ASSOCIATION OF LICENSED NURSING HOMES

Mr. LATHAM. Thank you, sir. I will make every effort to be brief. I might say, supplemental to the American Association's statement, we have specific statisties that insofar as Indiana is concerned refute certain claims in Mrs. Hobby's report before the House of Representatives.

The administration's decision to inject Federal aid into the nursinghome field, as announced in President Eisenhower's state of the Union message on January 18, 1954, was received by those of us in and connected with the nursing-home profession with disbelief, consternation, and shock.

Even today, the motivation, therefore, is somewhat obscure, although, from recent events, exemplified by certain press publications, we feel we may conjecture, almost to the point of certainty, as to the moving force behind this unwarranted invasion of the field of private enterprise.

That the administration itself is somewhat uncertain as to the efficacy of this move may be inferred from the first section of the bill, section 641, S. 2758, which provides in part as follows:

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