Document G75pLMLp1NZ27GN2mXB6xDRN
Health
Policy
Center
Advisory
No. 33 September 1971
HEALTH PAC
HEALTH
IN THE
INDUSTRIAL
HEARTLAND
America's greatest industrial concentra-
tion lies in a relatively small nine state
area, extending from Pittsburgh to St.
Louis and from the great lakes to Northern
Appalachia. Over 40 percent of the na-
tion's manufactures are produced in this
area, valued at more than $ 103 billion. It
is the home of the nation's largest indus-
trial corporation. General Motors; it is the
leading source of coal, which now supplies
more than 50 percent of the nation's elec-
tric power; it is the major production site.
for steel, automobiles, tires, and machine
tools. It is America's " Industrial Heart-
land. "
In this issue, the BULLETIN turns to
this industrially - important region of mid-
dle America. We focus on two industrial
cities, Cleveland and Cincinnati, and a
major source of raw material for their in-
dustries, Northern Appalachia.
Behind both urban and rural settings,
there lurks a similar industrial power
structure. Whether absentee, as in Ap-
palachia or ever present -
, as in Cleveland,
this industrial elite plays a central role in
the health of the region. It dominates the
boards of the largest, most prestigious
medical institutions, as demonstrated in
Cleveland and recently confirmed in a
study of Detroit (published in Hospitals
August 1, 1971). Less obvious, is the rela-
tionship of this industrial establishment to
inadequate, public health institutions,
like Cincinnati's Department of Health.
These tax supported -
institutions suffer from
chronic under financing -
caused in large
measure by low corporate taxes (Ohio
ranks lowest in the nation for corporate
taxes) and maintained by the consistent
lobbying efforts of powerful industrial in-
terests.
The industrial elite not only dominates
the major medical resources, it is also a
major cause of health hazards which
plague the region. It pours pollution over
the cities and devastates the countryside
with strip mining. Its plants are the source
of rising industrial accidents and newly-
recognized industrial diseases. For in-
stance, the mechanization which brinqs
the coal industry more profits, brings its
miners black lung more quickly and more
devastatingly.
Meanwhile, the major medical institu-
tions of the region make only gestures to
meet the mounting industrial casualties.
Programs for treating industrially - related
diseases are token; industrial health re-
search and teaching is virtually non-
existent; and advocacy on behalf of the
industrially - injured is unthinkable. This in-
stitutional behavior reflects the priorities
of the industrial establishment that domi-
nates the major medical centers.
Yet it is often difficult to identify the role
of the industrial establishment and to hold
it accountable for the failures of the health
system. Boards of Trustees function in
elusive, non public - ways ways.. The health
movement is often forced instead to deal
with the front - men - the administrators,
deans and Commissioners of Health. Public
institutions become the major focus of in-
surgent activity, as in Cincinnati, because
they bear the public responsibility for
health services, yet are given only a pit-
tance of the resources. The health move-
ment must find new strategies to move
beyond these front - men and public institu-
tions, to the people that hold the real pow-
er over health conditions and health care.
The Appalachian coal miners pose
one such strategy. By focussing on indus-
trial health and safety, the miners find
themselves locked in battle with the in-
dustrial elite which is responsible for the
major cause of the miners'poor health, as
well as the lack of facilities to treat it. In
so doing they not only confront the true
source of power in their own health area,
but they are also launching an exemplary
preventive health struggle.
CONTENTS
2 Cincinnati
8 Appalachia
13 Cleveland
CINCINNATI:
PEOPLE'S
HEALTH
MOVEMENT
Cincinnati, Ohio, situated across the
river from Kentucky, is a midwestern city.
with a southern exposure. It is a strongly
Republican town, the home of the " Taft
Dynasty. " Political conservatism is a way
of life in Cincinnati. Despite the political
climate, an insurgent health movement
has sprung up there. To understand its
origins, requires a deeper look at the con-
text from which it has flowered.
Cincinnati is the home of Procter and
Gamble, General Electric, General Mo-
tors, Ford and the Cincinnati Milling
Machine Company. It also hosts the Cin-
cinnati Reds for which a new $ 50 million
river front - stadium was completed last
year, at, of course, the taxpayer's ex-
pense. The city fathers and businessmen
are euphoric about the city's " major
league facility. " The people who live in
the city's dilapidated housing, ride its
privately - owned, expensive buslines, send
their children to its overcrowded schools
and use its inaccessible and inadequate
health services, however, think the city's
human service facilities are strictly " bush,
league. "
Each year thousands of people migrate
to and settle in Cincinnati's black and
Appalachian white ghettoes. It is the first
industrial oasis on the way north. The
new immigrants'litany is familiar: high
unemployment, crime, drugs, poor hous-
ing and health, discrimination and abuse
from the local police. " White " poverty is
very visible in Cincinnati where Appala-
chian whites become a " colonized " minor-
ity, separated from affluent Cincinnatians
by their culture, chronic poverty and
dialect. Both black and Appalachian peo-
ple are virtually excluded from the indus-
trial job market because of inadequate
education and their so called - " unadap-
tive " culture.
Bush League Empire
Cincinnati's health resources are dom-
inated by a " medical empire ": in this
case the University of Cincinnati Medical
College. All of the city's major health
institutions are located within three-
quarters of a mile from one another.
Adjacent to the medical college is the
only acute care public hospital, the 610-
bed General Hospital which is controlled
by the medical college. Cincinnati Med-
ical College's department chairmen are
also the department heads at General. In
fact. General Hospital is the medical col-
lege's major teaching and research center.
Across the street is the research-
oriented Children's Hospital, partially
built with Proctor and Gamble's sudsy
money. Children's Hospital has a $ 1.23 mil-
lion research endowment, but constantly
runs in the red for hospital operating ex-
penses. It is also utilized by the medical
college as a teaching and research center
but remains autonomous semi -
.
Published by the Health Policy Advisory Center. 17 Murray Street, New York, N. Y. 10007. Telephone (212) 267-
8890. The Health - PAC BULLETIN is published monthly, except during the months of July and August when - it
is published bi monthly -
. Yearly subscriptions: $ 5 students, S7 others. Second - class postage paid at New York,
N. Y. Subscriptions changes - of - address, and other correspondence should be mailed to the above address. Staif:
Constance Bloomfield, Des Callan, Oliver Fein, Marsha Handelman, Ronda Kotelchuck, Howard Levy, and Susan
Reverby. Associates: Robb Burlage, Morgantown, Barbara Ehrenreich, lohn Ehrenheich, Long Island; Ruth
Galanter, Los Angeles; Kenneth Kimmerling, New York City. 1971.
2
Nearby, are the other hospitals with
which the medical school maintains
teaching affiliations: Veteran's Adminis-
tration Hospital, Jewish Hospital, and, for
the medical care of the city's well - to - do
citizens, the 94 bed - elite Holmes Hospital.
Not far off are Christ, Bethesda and
Good Samaritan Hospitals.
Cincinnati hospitals have been involved.
in major building programs. A new build-
ing for in patient -
care at General Hospital
was opened just two years ago. However,
its out patient -
department remains in the
dreary, over crowded -
quarters. Helter-
skelter expansionsim at Christ Hospital,
resulted in a recently completed $ 2 million
pediatric pavilion despite the lack of a
pediatric staff. Meanwhile, from its win-
dows one can see the recently expanded
and underutilized Children's Hospital
with its full resident -
coverage and re-
nowned staff of pediatric experts.
The General Hospital - Medical College
(MC GH -) complex is the colossus of med-
ical care in Cincinnati. It has an intern-
resident staff of over two hundred doctors,
and in addition, trains another six hun-
dred medical students as well as hun-
dreds of nursing students.
Because GH MC - has major responsi-
bility for the care of the poor, it is a
much - used facility; it is also very much
hated and criticized. Since 1965, the Med-
ical College has graduated only one
black student. During the 1967 ghetto-
rebellions, the hospital was guarded by
the Ohio National Guard (of Kent State
fame). Despite this vigilance, bullets
were fired at the hospital.
Chronic Crisis
Insurgency within Cincinnati's medical
empire has been slow in developing. The
hospitals and health institutions have, by
and large, been successful in preventing
or stifling union activity among hospital
workers. The student and intern resident -
staff are, for the most part, conservative
or " apolitical. " A housestaff association.
exists, but it is primarily concerned with
salary issues. It has successfully raised
salaries from $ 3,500 in 1967 to the present
$ 9,000 a year. The relatively few activist
students at the medical and nursing col-
leges have worked primarily outside their
schools helping to organize a free clinic,
researching and organizing a screening
program for lead poisoning with the com-
munity council of Mt. Auburn, and parti-
cipating in antiwar and women's libera-
tion groups. The Cambodian invasion
saw the temporary involvement of many
more students who went out on strike,
thereby closing the university and med-
ical college.
Cincinnati has been in the throes of a
chronic health care crisis. Several areas
of the city have been without direct med-
ical services for decades. Over the years,
sporadic outcries have forced the City's
Health Department to provide pediatric
care through half - day, well baby -
clinics
held in several poor communities. And,
over the years, small concessions to a few
needy areas have been made with ex-
pansion of the Health Department's adult
services beyond VD and TB control to
some general care.
Still the entire Health Department bud-
get is only $ 3.5 million a year, and less
than $ 2 million of this amount is spent
on community facilities. This does not
include the nearly $ 2 million spent re-
cently for the new Health Department
Headquarters, which provides limited
clinic services, appropriately enough, in
its basement. That the care rendered is
poor is no secret. A few months ago a
member of the medical school faculty and
Assistant Health Commissioner of the
Health Department, Dr. Mary Agna, said:
" The city has a totally inadequate, sec-
ond class -
system of public health. Its ser-
vices and equipment are extremely poor.
The equipment and methods are so bad
I'm surprised anyone practices medicine
down there. "
Health conditions are so poor in Cincin-
nati that the development of a health
movement could not be postponed for-
ever. In 1969, despite the quiescence of
health students and health workers, the
East End Community began to act. Led by
welfare rights members, this community,
lacking any doctor or health facility and
isolated from mass transportation, organ-
ized itself. With some additional help
from a United States Public Health Ser-
vice (PHS) officer, this primarily white,
poor and low income -
community, devel-
oped a plan for a neighborhood health
center.
Health Councils
A mass meeting was held and plans.
for a community - controlled health center
were approved. Four thousand dollars.
" seed money " was obtained from a Cin-
cinnati foundation; a building was rented
and refurbished by the community using
donated and secondhand equipment. The
clinic now has a budget of $ 26,000 which
is raised from charitable, private sources.
It has maintained community control by
avoiding city funds, which are invariably
associated with economic guidelines and
central supervision by the City's Health
Department.
Although it was unrealistic to expect
3
private philanthropic agencies to finance
health centers in every neighborhood,
communities followed the lead of the East
End community and neighborhood health
facilities soon became a priority issue. In
one neighborhood, community people,
together with several young people work-
ing as conscientious objectors, began or-
ganizing around health care demands.
Other communities " got it together " with
no outside help. By August, 1970, groups
sprang up in English Woods, Price Hill.
Winton Woods, Clermont County and sev-
eral other communities. In each of these
neighborhoods, community residents cre-
ated " Community Health Councils " which
determined priorities and operational pro-
cedures.
The Health Department soon became
the target of insurgent community groups.
The inadequate Department of Health
clinics became vulnerable as the most vis-
ible manifestation of the city's lack of
concern for people's health needs.
English Woods, an integrated commu-
nity concentrated in the Metropolitan
Housing Project, and Price Hill, a white
area composed of a large concentration
of Appalachians, were the pacesetters.
Representatives of the Community Health
Councils from these communities spoke
before the City Council demanding the
resignation of the unresponsive Health
Commissioner, as well as immediate funds
for health services in their communities.
The people attended council meetings en-
masse, with full media coverage. Mrs.
Beverly Dixon of English Woods, and Mrs.
Icey Judd of Price Hill demanded $ 20,000
for each community to establish health
centers. Petitions followed, demanding in-
creased health services and the resigna-
tion of the Commissioner of Health.
In August, 1970, residents of English
Woods descended upon the City Council
Finance Committee, to demand city funds
for the operation of a health center in
their community. They were angry and
frustrated at the run around -
they had
been given by the City and Department
of Health since their initial request in
February, 1970. The English Woods
Health Board demanded the right to con-
trol the facility, set the budget, hire and
fire all personnel and to determine policy.
After further pressure at a full City Coun-
cil hearing, the community was given
$ 12,000 for operation of a health facility
for the last quarter of 1970. The English
Woods Health Board (a seven member -
board elected by the community) began
interviewing and hiring personnel from
custodians to doctors. They obtained space
in the Metropolitan Housing Project and
began to furnish it. In October, when the
4
English Woods Health Board had obtained
commitments to contracts for doctors and
nurses, the Board and community support-
ers went to the Health Commissioner for
endorsement of the contracts and release
of the committed monies. The Commission-
er was under great pressure from the City
to curb the community revolt against his
department. After a series of long meetings
with the community and night - long vigils
at his office, he affirmed the local boards '
right to direct the clinic, and signed a
contract with the English Woods Health
Board to this effect. The clinic started op-
erating in October, 1970, with an ap-
proved budget of $ 48,000.
By March, 1971, the English Woods
Health Center had expanded to five days
a week, with evening sessions arranged
for working people. Its staff, largely from
the community, has worked collectively
under the direction of the Community
Board's policy quidelines. In the wake
of this success, the Price Hill community
has begun a campaign to expand the
Health Department Clinic in Price Hill
and turn it over to the Community Health
Council for operation. So far, the City
has not met these demands.
Lundberg Report
While communities challenged the
Health Department for expanded and
community - controlled health services, a
crisis developed within the Health Depart-
ment itself. Doctors, nurses, assistarit a -
ministrators and maintenance workers re-
signed in increasing numbers, complain-
ing of low salaries, poor working condi-
tions, and inadequate patient services
provided by the Health Department. The
crisis reached the point where a clinic in
the black community of Avondale had to
be closed for lack of a doctor. A petition
demanding the resignation of the Health
Department's Commissioner, Dr. James
Wharton, drew the signatures of 176 em-
ployees and was made public.
At the same time, the community broad-
ened its attack against the Health De-
partment to include the Board of Health.
The Board of Health is a five member -
board appointed by the Mayor for
10 year -
terms. Some board members had
served since 1952. The Board approves
health expenditures and sets policy for
the Department of Health. Community
groups accused the Board of " being an
exclusive club which holds secret meet-
ings and attempts to maintain all power. "
They called for a reorganization of the
Board to represent the interests of the
consumers of health services.
With both the Board of Health and the
Health Commissioner under fire from the
community and Health Department work-
ers, the City Council agreed to an out-
side study of the Health Department.
Three University of Cincinnati faculty
/ members were selected as the investigat-
k ing team. Their report, the Lundberg Re-
Olj port \, was a severe indictment of the
\ Health Department. It called for the resig-
nation of the Commissioner as well as
the entire Board of Health. It noted " strong
resistance to innovation and change. Slug-
gish bureaucratic methods have proved
ineffective in dealing with the problems
raised by community pressures. " Attention
was called to the " norm of secrecy " and a
" climate of distrust. " The report criticized
the absence of any long term - planning
and dissipation of energy in " crisis solu-
tions. " The Board of Health was called
" ineffective, and trapped in traditional
solutions and methods.'"
PHM
Meanwhile, some community people,
feeling the need for a unified voice, organ-
ized an open membership group called the
People's Health Movement (PHM). PHM's
early membership consisted of 80 to 100
people representing welfare families, in-
dustrial workers, professionals, health
workers and students.
At first, the Health Commissioner re-
fused to release the results of the Lund-
berg Report. But under growing pressure
from the alliance between lower echelon -
Health Department workers, the communi-
ty and the People's Health Movement, the
It Stank L They Struck
While trade journals advertised Cincinnati's " healthy labor climate, " 650 mem-
bers of the International Chemical Workers Union, Local 342, fought a nine-
month long strike against the Hilton Davis Company in Cincinnati.
The strike began on June 8, 1970 in conjunction with a strike of chemical
workers at the Rensselaer, New York plant of the Sterling Drug Company,
parent company of Hilton - Davis. Sterling had a total net sales in 1969 of
$ 594,159,000 and makes Phillips Milk of Magnesia, Haley's M.O., Fletcher's
Castoria, Lysol Products, Midol, as well as owning Winthrop and Breon Lab-
oratories.
Hilton - Davis workers demanded a safety committee with worker representa-
tion to inspect the plant because of hazardous working conditions and danger-
ous pollution both inside and outside the plant. They also demanded an 80-
cent hour - an -
wage increase including a cost living - of -
clause.
The strike received support from many elements of the community. Organized
labor called for a boycott of Bayer aspirin and other Sterling products. Electrical
and auto workers on strike at the time against G.E., G.M. and Ford over issues
including health and safety, gave monetary aid to the Chemical workers and
walked on the picket line. Members of Operating Engineers Union, Local 20,
were fired for honoring the Chemical Workers'picket line. Activists from the
People's Health Movement (see above) gave strong support to the Sterling boy-
cott and walked the picket line. Workers were joined by students from Antioch
College and the University of Cincinnati whose arrests gave the strike almost
its only publicity. The press played down the strike and the issues behind it,
especially the air pollution issue.
During the strike, Hilton - Davis workers got $ 25 a week in strike benefits and
food stamps. In December the company canceled the workers'health and hos-
pital benefits and workers experienced first hand the inadequate health facil-
ities available to the poor in good as well as in hard times.
Hilton - Davis refused to consider the demand for a health and safety com-
mittee. After 20 weeks of the strike, the company issued its " final offer, " and
then placed classified ads for " replacements " for over 500 positions and began
hiring in an attempt to break the strike. Finally, in March 1971 the union called
an end to the strike. The workers were forced to settle for 33 cents - - an - hour wage
increase for this year, with a five percent hike over the next two years, and a
partial cost living - of -
clause. None of the health and safety demands was met
and no health and safety committee was established in the plant.
Since the strike, a number of Hilton - Davis workers, together with workers
laid off from other industries (10,000 workers have been laid off in Cincinnati
during the last six months) have joined the struggle for improved health care
as a result of their experience with poor health conditions in the work - place
and their encounter with inadequate health facilities in the community.
_
Health Commissioner resigned in Novem-
ber, 1970, to be followed shortly thereafter
by the resignation of the entire Board of
Health.
PHM began to draw up demands for
the reorganization of the Board of Health
with a resident consumer -
majority, and
for a voice in choosing the new health
commissioner. Following the resignations
of the Board and Commissioner, PHM ap-
peared before the City Council with 60
people. Mrs. Dorothy Green of English
Woods said, " The Commissioner is one
man and can't be all the problem. The
poor and working people have to control.
the Board of Health. "
In January, 1971, the Mayor appointed
a new Board of Health. In a token conces-
sion to the community, Lorena Jewell, a
40 year - - old working mother was appoint-
ed to the Board. She had been recom-
mended by community groups, including
PHM. However, the other four members
of the new Board included two reappoint-
ments from the old board, and two es-
tablishment health leaders. Protests
mounted against the composition of the
new board, but were unsuccessful.
In April a rally was held in a down-
town park with the slogan " Unite To
Fight, Health Is A Right. " About 300 per-
sons heard speakers from the People's
Health Movement, Welfare Rights Or-
ganization, Black Workers Liberation
League, health workers and consumers
from all parts of the City. After the rally,
200 people marched into the City Council
under the PHM banner and demanded a
charter amendment for a People's Board
of Health and comprehensive health.
services.
The continuing pressure over these de-
mands from the community and PHM has
forced the Council to draw up a charter
amendment revising the Board of Health
to a 9 member -
Board with 3 year - terms.
The health movement is now rallying to
secure a provision in the amendment re-
quiring a consumer resident -
majority be-
fore the proposal is placed on the ballot
in November.
The community received another slap
in the face in the selection of an acting
Commissioner of Health. The Community
Health Councils and PHM asked for veto
power in both the choice of the new Com-
missioner and in the interim appointment.
These demands were ignored when Dr.
Mitchell Zavon, Assistant Commissioner
for Environmental Health was appointed
as acting Commissioner of Health.
Zavon, Shell and Lead
The community distrusted Dr. Zavon
because of his position on lead poisining,
6
among other things. Dr. Zavon denies that
lead poisoning is a " serious " problem in
Cincinnati, and opposes lead screening
clinics and education campaigns as
" scare " tactics. He rejects the Surgeon
General's guidelines on toxic lead levels
and thinks treatment is warranted only
in symptomatic children.
Yet, in August, 1971, the results of
screening 194 preschool children in the
predominantly black Mt. Auburn commu-
nity showed that sixty children had ab-
normally elevated blood levels of lead.
Follow - up testing is still being performed,
but already 29 children have had the di-
agnosis of lead poisoning (by the Sur-
geon General's standards) confirmed.
In addition, Dr. Zavon, while he was
Cincinnati's Assistant Commissioner for
Environmental Health, also maintained a
private industrial consulting firm and was
a paid consultant to the Shell Oil Com-
pany, even testifying on behalf of Shell
before Congress. He was the only health.
officer in the United States to endorse
Shell's " Pest No -
Strip " (see box p. 7).
Because of Dr. Zavon's activities on be-
half of Shell and against the community
with regard to lead poisoning, PHM,
citizens groups and Department of Health
employees have called for his resigna-
tion. This is consistent with PHM's pro-
gram calling for environmental protection
and factory inspection programs, as well
as comprehensive neighborhood health
centers and free transportation to health
clinics and hospitals.
Workers Arise
Health workers are becoming a vital
part of Cincinnati's health movement. The
Cincinnati Health Employees Council,
made up of public health staff nurses,
sanitarians, clerical and maintenance
workers, has evolved out of the wide-
spread discontent felt within the Depart-
ment of Health. At a recent meeting held
to discuss pay, benefits and career ad-
vancement, its Chairman said, " The com-
munity people are the ones who are
speaking up and they are going to win.
And notice, they're not saying request,
they are saying demand! I suggest that
we put that word in our vocabulary and
stop acting like third class -
citizens. "
These and other health workers are be-
coming active in PHM, as are women ac-
tive in women's liberation groups. A
group of students at the medical college
are researching Cincinnati's health power
structure. This growing health movement
is being given feature prominence in the
City's new worker oriented -
newspaper
Movin on Up.
Zavon's Shell Game
Shell Chemical Company's " Pest No - Strip " is a slow release -
pesticide whose
active ingredient is Vapona, DDVP. DDVP was discovered in 1955 by the
Public Health Service (PHS) and is chemically related to nerve gases used in
World War II. The organic phosphate -
compound was tested by the PHS in
Haiti, Upper Volta and Nigeria.
" Pest No -
Strip " was approved for human use by the Department of Agricul-
ture in 1963, over the objections of the PHS. It has since been learned that three
Department of Agriculture consultants who were involved with the regulatory
status of " Pest No -
Strip " were employed by Shell Chemical. One of these con-
sultants was Dr. Mitchell Zavon, until recently Cincinnati's acting Health Com-
missioner.
By 1970, the Food and Drug Administration had taken a second look at
" Pest No - " and discovered that when it is used in kitchens, the strip leaves
unacceptable levels of insecticide in foods. After initial resistance, Shell Chem-
ical included a package warning against the kitchen use of " Pest No -. "
But the controversey is still unsettled. Prof. Goran Lofroth of the University of
Stockholm claims that DDVP makes dogs more susceptible to barbiturate
poisoning, may cause chromosome abnormalities in peas, and may increase
mutation rates in bacteria. Many scientists recommend a maximum intake of
DDVP far below the level produced in the three month life span -
of " Pest No -
Strip. "
At the present time, neither the FDA nor the Department of Agricuture con-
templates any further action against the product.
APC All Purpose Cure
The health movement in Cincinnati has
scored some impressive gains. Until now,
however, it has chosen not to attack the
most powerful health institutions in the
city the General Hospital Medical Col-
lege (MC GH -) and the large voluntary
hospitals. Previous community pressures
against GH MC - have been deflected by
the creation of Ambulatory Patient Care,
Inc. (APC).
APC was formed under the impetus of
a $ 131,375 OEO grant to the University of
Cincinnati in 1969. Its board consisted of
" representatives of the poor " selected
from the thirteen target areas served by
the local OEO agency, the Community
Action Commission. The medical school
and hospital contributed some deans, pro-
fessors and administrators. The Chief
Administrator of General Hospital, was
chosen as Chairman of the Board of APC,
Inc. The Board was supposed to develop.
plans for a $ 7 million neighborhood
health care program. Two years later and
most of the money spent, a plan was sub-
mitted to OEO calling for General Hos-
pital to send $ 7 million to develop neigh-
borhood health centers in three poor
communities, two black and one white.
OEO rejected the proposal as too poorly
planned and chided the administrator to
improve existing services at General Hos-
pital. With its veneer stripped away,
GH MC - is now more vulnerable than
ever before.
The Lundberg Report fueled opposition
against the Department of Health.
Community groups, health workers and
a sprinkling of industrial workers and
students, are beginning to see that the
Lundberg Reports'criticisms of the Health
Department can be applied with equal
justification to GH MC - and to all of the
private medical institutions in the City. As
the empire expands, people demanding
better health care are beginning to realize
that they are merely afforded the right to
listen to the next promise and the next of
the empire's grandiose schemes. A,
The perspective of the health insurg-
ents, especially the community people,
has developed through struggle with auto-
cratic and unresponsive agencies of the
City government and the health bu - j
reaucracy. While major institutions such]
as General Hospital - Medical College Com-
plex have so far escaped the brunt of an
organized attack, the insurgents'commit-
ment to and their understanding of com-
munity control and its ramifications is
growing rapidly and threatens this em-
pire's security. - Gene Inch, M.D., former
resident at Cincinnati Children's Hospital.
He is presently serving with the U.S. Army,
Fort Bragg, N.C.
7
OLE
KING
COAL
In the last five years an occupational
health and safety movement has flour-
ished among Appalachian soft coal
miners despite the concerted opposition,
or at best indifference, of the coal com-
panies, the United Mine Workers'Union,
local, state and federal government offi-
cials, and the universities and medical
centers of Appalachia.
The struggle for minimal guarantees of
health and safety have led to wildcat
strikes, marches on Washington, and suc-
cessful multi million -
dollar law suits. Fol-
lowing the disaster at Farmington, West
Virginia which took 78 lives in 1968,
miners and an aroused public pushed
through the federal Coal Mine Health
and Safety Act. This granted the legal
basis for the first real protection against
the twin scourges of mining accidents and
coal workers'pneumoconiosis or black
lung disease. In the course of this strug-
gle, insurgents have knocked the United
Mine Workers, once revered for its con-
cern about health, reeling under charges
of graft, collusion with management, and
denial of members'rights.
The mobilization of Appalachian miners
is a significant development in an arena
of increasing attention and concern with-
in the health movement - that of occupa-
tional health and safety. What has caused
miners to mobilize? Why has the opposi-
tion seemed so monolithic? And having
at last cracked the monolith, what course
will the struggle take now?
For generations miners in the eastern
coal fields have battled a rapacious coal
8
industry, which had guilefully bought up
mineral rights of most of the Appalachian
coal fields with broad form deeds; ex-
tracted vast sums of wealth from the
mines at fantastic profit to absentee
owners; fought pitched battles with mine
union organizers; and built a society
in which homes, stores, doctors, county
and state governments were literally
owned by the coal companies. During the
1930's and 1940's the heroes were the
United Mine Workers with its legendary
president, John L. Lewis, who for the first
time brought the companies to their knees
and brought some measure of dignity to
a miner's life.
But when John F. Kennedy toured West
Virginia in the spring before the 1960
election, and Harry Caudill in 1962 wrote
Night Comes to the Cumber lands, Amer-
icans learned of desolation, hunger and
unemployment in the mountains, a dying.
coal industry, and a union which although
it had built eight Miners'Memorial Hos-
pitals where virtually no modern health
services had existed before, no longer
seemed able or even willing to fight for
its members.
The New Economics of Coal
Ten years later too few Americans un-
derstand the new economics of coal.
Coal production is now well over 500,000, -
000 tons a year, within shouting distance
of its peak year in 1947. Though the rail-
road and home heating markets have dis-
appeared, coal now supplies 53% of the
electric power of the nation, and accord-
ing to Fortune has an excellent long term
outlook: " The federal government now
views coal as'the cornerstone of our
energy philosophy for the coming genera-
tions.'Conversion of coal to gas, gaso-
oline and oil, now on a pilot plant basis,
is becoming feasible and economical.
Coal, in terms of heating value, com-
prises 75% of the known fuel reserves in
the U.S., whereas oil is but 5% and shale
oil 13%.
With this new picture, several of the
largest coal companies have been bought
up by oil firms. Consolidated Coal, largest
in the industry and long dominated by
the Hanna Mellon -
interests of Cleveland
and Pittsburgh, has been taken over by
Continental Oil, heavily infused with
Rockefeller money. Indeed, Consolidated
was the special creation of George M.
Humphrey, Cleveland lawyer and finan-
cier. (See pp. 15 and 19.)
The mergers have given the coal indus-
try giants exceptional capital resources
and financial flexibility with which to
carry through large scale mechanization
of the mines. This has meant increased
productivity on the one hand, and whole-
sale cuts in the work force on the other.
Productivity of American miners, with
the new machinery, is 4 or 5 times that of
miners in England and continental Euro-
pean countries. The price of this produc-
tivity, however, has been increased
health and safety hazards for those who
mine the coal.
Recent years have brought drastic
change not only to underground mining.
Strip mining has been transformed and
has boomed due to the development of
huge trucks and earth moving machinery
and new road construction. Stripping re-
quires a relatively small but extremely
productive work force and little invest-
ment compared to the expense of extend-
ing and operating deep underground
mines. But it also ruins the land in an es-
pecially devastating way: mountain tops
and sides, trees and top soil are torn
away irreplaceably. Rivers are filled with
acid drainage and silt. People's homes.
are crushed. Left behind is devastation,
resembling post - war Vietnam or the moun-
tains on the moon.
It is this devastation which has called
forth such vigorous protest, by mountain
people, editors, writers, ecologists. And
caught in the bind, as is often the case,
are the poor and working people of the
mountains. They are asked to choose be-
tween jobs free from the dangers of roof
falls and black lung, on the one hand,
and the integrity of their land on the other.
The United Mine Workers
Much of the history of Appalachian
soft coal miners in the last forty years
is the history of their union, its heyday
and its decline.
Decades of mine wars launched by
open - shop coal operators and fought by
their gunmen were finally won in the
1930's by the United Mine Workers of
America (UMWA). Drawing heavily on
the benevolent support of President Roose-
velt, the union signed up hundreds of
thousands of members. The union forced
operators to sign contracts and wages
rose rapidly under the impact of massive
strikes. By the end of World War II the
national union membership stood at
600,000 active members.
By 1950, however, the industry had en-
tered a decline, hastened by its loss of
two mainstay markets, the railroads and
home heating, to a competitive fuel oil.
After the final bitter national strike of
1950 (there has been none in 21 years
since), union president John L. Lewis
negotiated the first industry - wide contract
in coal history. The industry agreed to
pay 30 cents a ton royalty to the UMWA
Welfare and Retirement Fund and in re-
turn, the operators were given a free
hand to mechanize the mines without
union opposition.
This, in effect, lent union leadership sup-
port to the process of eliminating jobs
for union members. It also tied the inter-
ests of the leadership to production and
productivity, not only by its acquiescence
to mechanization, but by its interest in
higher royalties for the Welfare Fund.
For the union the result has been in
many ways disastrous. The union's mem-
bership dropped from 600,000 nationally
to 193,000 in 1969. Only half of these
are active members; the rest are retired.
The unionized sector of the industry be-
gan to shrink drastically in the late fifties.
and early sixties, especially in Eastern
Kentucky. Small non union - mines began
to spread rapidly, and miners, forced to
work in them to feed their families, lost
their union welfare benefits. Moreover,
the union began to cooperate with big.
management in support of coal's fortunes
in Congress and elsewhere. For example,
Lewis lent union funds to Cleveland mil-
lionaire Cyrus Eaton to buy into a non-
union Kentucky coal firm seeking to enter
the Tennessee Valley Authority's coal
market. When Eaton was successful and
became chairman of the board, he recip-
rocated and signed a union contract with
his creditors.
Yet this cozy relationship of union
leaders with big operators did not extend
to the membership. Union members were
unable to elect their leaders. Large salaries,
pensions and job security became the rule
for the union leaders; low wages, unsafe
working conditions, threatened unemploy-
ment and a pittance pension became the
lot of the miners.
The UMWA Welfare Fund had financed
a benefit program for health and other
needs of the men and their families.
Eight Miners'Hospitals were built in the
early sixties (for union members only),
bringing high quality medical care to
the mountains for the first time. But the
Fund could not long afford the expenses
of underwriting private medical care in
a depressed single industry society.
Rather than close them, the UMWA un-
loaded ownership of the hospitals to a
non profit - regional chain, Appalachian
Regional Hospitals, set up and financed
by church and government leaders.
More recent revelations, however, have
shown extensive manipulation and mis-
management of the Welfare Fund. Mil-
lions had been lost by investing Welfare
Fund money in non interest - - bearing ac-
counts in the union's own National Bank
of Washington.
In this situation a struggle for democ-
9
racy in the union arose. Rank - and - file
movements in the late sixties focused on
mismanagement of the welfare fund, neg-
lect of health and safety issues and
change of the leadership of the union.
W.A. (Tony) Boyle, John L. Lewis'suc-
cessor since 1980, faced opposition can-
didate Jock Yablonski. Boyle won primari-
ly on the strength of the vote of retired
miners (still members of the union),
whose pension was raised $ 35 a month
just before the election.
Yablonski's assassination
by by hired
thugs 21 months ago only increased the
furor in the coal fields. Retired miners
and widows sued in federal court to ex-
pose mismanagement of the welfare fund
and recently succeeded in knocking Boyle
out as trustee of the fund. New organiza-
tions, such as Miners for Democracy, have
emerged within the union, focusing on the
soft coal contract which ends October 1. A
recent report in The Miners Voice, news-
paper of the rank and file movement with-
in the UMWA, points out that rank and file.
contract demands center on a unique com-
bination of economic and health and
safety issues. Particularly important is
the demand for a required safety shift for
maintenance and repairs, and time to let
coal dust settle, in addition to a six hour -
work - day with three production shifts.
Other safety demands are:
y
*
triaTa doctor or nurse be present at
the mines at all times;
l
*
that all dust samples be taken by
union men;
i that the right to strike during the con-
tract over safety issues or repeated con-
tract violations be guaranteed.
Solely
Coal mining has long been the most
dangerous and disabling occupation in
the United States. 100,000 have died vi-
olent deaths in the mines since the turn
of the century and well over a million
suffered injury. Massive explosions, tak-
ing scores to hundreds of lives, have been
repeatedly attributed to the same causes
through the years: critical accumulations
of methane gas, inadequate ventilation,
sparks from unshielded electrical equip-
ment. And repeatedly accounts of these
disasters tell of defective safety measures
by the companies: ungrounded ma-
chinery, poor maintenance, improper han-
dling of explosives, lack of safety pro-
grams and the like. Like a litany, too,
are repeated accounts of state and fed-
eral inspections that fail to lead to the
correction of safety violations before dis-
aster strikes.
The 1969 Coal Mine Heatlh and Safety
Act was passed after miners, public and
Congressional uproar following the trage-
dy at Farmington, W. Va. in Consolidated
Coal's huge No. 9 mine in which 78 died.
Far stricter controls than ever before were
imposed on methane gas, on dust levels
permissible in the mines, and on the
shielding and grounding of electrical
equipment, etc. Federal mine inspectors
were, for the first time given authority to
close a mine if it poses an imminent dan-
ger. Yet not only did the coal operators
fight the law every step of the way before
passage, but by law suits and political in-
fluence they succeeded in nullifying any
real enforcement of its new safety pro-
visions for many months.
The Bureau of Mines delayed several
weeks in publishing the details of mine.
safety requirements set forth in the new
law, prompting three Congressmen and
a West Virginia miner to finally sue for
their immediate publication. Later a
group of small Eastern Kentucky oper-
ators sued the Bureau. When a judge
granted a restraining order to prevent en-
forcement of the safety rules in that area,
the Bureau stopped all safety enforce-
ment in all mines throughout the country
by its entire staff of inspectors.
The Bureau was supposed to have
1000 inspectors in the field by June 30 of
this year. On May 28, the Wall Street
Journal said the Bureau had hoped to
have 705 by June 30, but in fact would
have only 500. On May 29, in actuality,
the Bureau had 251 inspectors in the
field and 52 supervisors.
The uproar over mine safety enforce-
ment became so great last year that
Senator Harrison Williams of New Jersey,
in August, succeeded in launching an in-
vestigation of the Bureau of Mines by the
General Accounting Office (GAO), which
is responsible to Congress, The GAO re-
leased its report early last June and
charged thoroughgoing negligence on
the part of the Bureau. The report dis-
closed that:
* Only 31% of the required safety
inspections, and only 1% of the required
health inspections had been made by
December 31, 1970.
* The Bureau had failed to use its
power to close mines when inspectors
found repeated safety violations. Inspec-
tions had been " at times extremely lenient,
confusing, uncertain and inequitable "
concerning safety enforcement.
The Bureau had failed to force op-
erators to begin required dust sampling
and had allowed them to submit " errone-
ous data. "
*
It had done little to induce operators
to submit required plans for roof control,
10
ventilation and emergency action when a
fan fails.
In the face of this barrage of criticism,
one of the first moves of Rogers C.B.
Morton, Nixon's new appointee as Secre-
tary of the Interior (whose department
oversees the Bureau of Mines), was to
hire public relations man Harry Tre-
leaven, with high GOP connections, to
seek ways to improve the public image
of the Bureau. Following the study, Tre-
leaven, on his own initiative, launched
a public relations campaign claiming
that the key to the dangers in the mines
was the miners'carelessness, not com-
pany negligence and pressure for pro-
duction. A year - and - a - half after new
" strict " federal law, safety enforcement in
the mines continues to be lax. In 1970
deaths in the mines actually increased
from a pervious yearly average of 140 to
200 and over 10,000 injuries were recorded.
Unable to secure action from industry,
government or their own union, miner's
have resorted to wildcat walkouts to recti-
fy conditions. Two large mines in south-
western Pennsylvania were struck in early
January. At the Gateway Coal Company
miners demanded a special federal inspec-
tion for excessive coal dust. At the Buckeye
Coal Company mine in Nemacolin, they
acted to speed workmen's compensation
benefits to a miner injured on the job.
Black Lung
Less dramatic but far more prevalent
than mine disasters is black lung or coal
workers'pneumoconiosis (CWP). This
newly designated disease was unknown
to medical scientists in this country only
a few short years ago. In fact, standard
medical textbooks of the 1950's state coal
dust is harmless. Yet evidence is fast ac-
cumulating that coal dust already known
to propagate fire and explosion in a
mine, is responsible for a specific respira-
tory disease of miners that can, within
as little as five years in extreme cases,
leave a man choking for breath, blue
from lack of oxygen, and, in all, totally
disabled and doomed to an early death.
Known treatment is ineffectual. In fact, by
far the best treatment is prevention of
the disease by reducing the dust in the
mines.
The 1969 Coal Mine Health and Safety
Act for the first time gave legal recogni-
tion to this disabling disease. The Act
established compensation for men al-
ready disabled by the disease and in
addition it set maximum permissible con-
centrations of dust in the mines, to re-
duce or prevent future cases of illness.
One of the first rounds in the struggle
for the new health and safety law focused
on the permissible level of dust in the
mines. Most experts felt no more than 3
milligrams of dust per cubic meter of air
was acceptable. Yet when the coal oper-
ators in 1969 screamed they could not
meet that standard in mines producing
coal for federal contracts, Nixon's Secre-
tary of Labor, George Schultz, obligingly
relaxed the standard to 4.5 milligrams,
half again the acceptable level. When the
law was finally passed, it did require the
3 milligram dust level by June 30, 1971.
In a report delivered to a mining confer-
ence on November 7, 1970, Robert K. Jones
of the Kentucky State Department of
Health revealed that some miners in that
state were breathing not half again, but 76
times the maximum concentration of coal
dust deemed safe by federal law! This
study also revealed that 57.4% of the
state's underground mines exceeded the
federal limits effective June 30, 1970.
For a three - year period ending in 1972,
the new law set up a federal compensa-
tion program for black lung cases, to be
administered by the Social Security Ad-
ministration. After 1972, the program will
revert to the states, whose workmen's
compensation funds are paid mostly by
the employers.
Administration of the black lung pro-
gram by Social Security has been in-
credibly bureaucratic and restrictive. The
Social Security Administration has relied
on inexpensive and possibly misleading.
X ray - and breathing tests to establish di-
agnosis and state of total disability. The
burden of proof has been placed totally
on the miner (or his widow). Social Se-
curity has done virtually nothing to make
available adequate adequate testing facilities,
staffed with competent, sympathetic doc-
tors in the coal country.
Closer to the coal fields and fortified by
an unmatched experience of examining
some 4,000 miners in the last eight years,
Dr. Donald Rasmussen of the Appala-
chian Regional Hospital in Beckley, West
Virginia, has reported that X rays - and
breathing tests are not at all a reliable
guide to degree of disability. He states.
that gas studies of blood oxygen and
carbon dioxide correlate best with func-
tional disability. Rasmussen warns that
not only are traditional researchers un-
derestimating the extent of black lung,
but the new mining methods of recent
years, particularly new drilling machines,
are making pulmonary cripples earlier
and faster than older methods. Hence he
forecasts a rising tide of black lung,
cases in the next several years.
As of April 30, 1971, 286,000 claims had
been filed across the country and 246,000
processed (45,500 in West Virginia and
11
28,000 in Kentucky). Of those processed,
no less than 58% were disallowed. Denial
letters did not even tell of rights of appeal.
Even more incredible, the denial for
miners (not widows) varied from 33%
in Pennsylvania, which has a public - run
black lung diagnostic and compensation
program, to an enormous 78% in Kentucky
(highest in the country). Some have
sought to explain this discrepancy by the
greater poverty and resulting " compensa-
tion - itis " in Kentucky. However, they ap-
pear to have overlooked the great influ-
ence of the coal companies on both state
and federal office holders in Kentucky,
as state takeover of the black lung pro-
gram looms 16 months ahead.
State university medical centers have
made gestures toward the black lung
problem faced by miners. The Public
Health Service has set up the Appala-
chian Laboratory for Occupational Res-
piratory Diseases (ALFORD), sometimes
known as the " Byrd Sanctuary " after its
mentor, Senator Robert Byrd, at the Uni-
versity of West Virginia. In its two years.
of existence the laboratory has spent most
of its time and energy preparing for ex-
pansion into a luxurious new building
equipped with extensive machines and a
salubrious surrounding golf course. At the
present, ALFORD is engaged in a clinical
(largely X ray -) study of 31 mines with
20,000 to 30,000 miners participating. A
report on its findings is said to be due
later this year.
The University of Kentucky, recently
under attack for its stingy attention to
the problems of poor people and miners
of the eastern region of the state, has re-
sponded in a publicity release that quan-
tified its efforts on the miners'behalf.
During 1970, 280 miners were referred
by Social Security for lung function tests.
About 100 new patients a year from the
mountains are seen in the outpatient
clinic for chest disease. 50 to 60 a year
are inpatients with similar disorders. And
60 to 80 are carried as long term outpa-
tients with chronic lung disease, paid for
up to recently by a federal research
grant that has now run out.
The Black Lung Movement
This is the setting in which the Black
Lung Association (BLA) has sprung to life
and grown rapidly in the Appalachian coal
counties. It was born in December, 1968,
when miners in West Virginia's Fayette
and Kanawha Counties joined to demand of
the state legislature that workmen's com-
pensation be allowed for black lung vic-
tims. Three doctors, Rasmussen, Buff and
Wells, traveled the state speaking to
miners'groups in their behalf. In Febru-
12
ary, 1989, a wildcat strike was set off at
Winding Gulf Mine in Raleigh County.
Within 5 days it spread to 42,000 of the
44,000 coal miners of West Virginia. No
coal was mined for 23 days until a bill
was passed and signed by the Governor.
Spurred by this major victory, the Asso-
ciation moved on to press for the federal
law that eventually became the 1969 Coal
Mine Health and Safety Act.
Goals of the B.L.A.
" 1. To make coal mining a safe
and healthy occupation. To ensure
enforcement of the federal coal mine
health and safety act of 1969. To im-
prove state laws and their enforce-
ment.
2. To improve the administration
of all benefit programs for coal miners
and to work for their improvement:
state workmen's compensation pro-
grams, federal social security dis-
ability programs, the federal black
lung program, the UMWA Welfare
and Retirement Fund.
3. To return democracy to our
union. To return constitutional rights
of the rank and file to elect their dis-
trict officials. To end corruption and
featherbedding by relatives of our
union's leaders. "
In the summer of 1970, another dissi-
dent group stepped forward. The Dis-
abled Miners of West Virginia, stung by
progressive reductions in medical benefits
and pensions from the UMWA Welfare
and Retirement Fund, sought unsuccess-
fully time after time to meet with W.A.
(Tony) Boyle, union president and trustee
of the fund. Circulating by means of rov-
ing pickets, they soon pulled 200,000
miners off the job in West Virginia, East-
ern Ohio and Western Pennsylvania. Em-
ployers sped to the courts to get federal
injunctions against the wildcat walkout.
Over a 3 month -
period they were eventual-
ly successful, and the walkout was de-
feated. But the struggle for rights within
the union had advanced and was picked
up by others in the movement.
September, 1970, brought the first major
wave of benefit denials under Social
Security and the Black Lung Association.
began an educational campaign on the
rights of appeal. As a result, 14 or more
local chapters of the Association sprang
up in Virginia, West Virginia and Ken-
tucky. Last winter BLA worked to train
lay advocates to press black lung claims
and appeal of denials. And during the
1971 West Virginia legislative session,
BLA joined other union dissidents to form
the Workers Alliance for Fair Compensa-
tion. While the Alliance did not achieve
its main goals, it made significant gains,
including cost of living escalators for
those on workmen's compensation.
Fed up with the evasions and delays
on the part of the government black lung
program, this past June BLA organized.
hundreds of miners and miners'widows
in a bus delegation from the coal fields to
Washington. The delegation presented
the following demands:
*
All eligible miners and widows have.
a right to complete and impartial ex-
aminations.
* We want properly equipped clinics,
such as the one in Beckley, established
throughout the coal fields.
* We want the use of X ray - evidence
stopped. This is not the law and must be
removed.
* We demand proper assistance in
filing and processing claims.
* We want widows'claims decided
on more liberal evidence.
* We want a dollar for dollar offset
between compensation and black lung.
benefits stopped.
The health and safety movement has
succeeded in crossing old lines that usual-
ly divide the rank and file from retired and
disabled miners. It includes both miners
and their families; black as well as white
workers. In an industry which in many
places has been deserted by the union,
the movement unites both union and non-
union workers. It cooperates with welfare.
rights and poor people's organizations
and has merged the struggle for a better
union contract with that for democracy
within the union itself.
The organization of Appalachian miners.
around occupational health and safety
issues holds important lessons for the
health movement as a whole. The work-
place makes up one third -
to one half - of
every worker's health environment, and
if the health movement is to address the
causes of poor health rather than simply
its treatment, it cannot ignore occupa-
tional health and safety conditions. In
attacking the causes of black lung, mine
explosions and roof falls -, miners are
truly conducting a struggle for environ-
mental and preventive health.
Not surprisingly, to achieve these goals,
the miners find themselves pitted against
the major economic forces of that region.
-the coal companies which control its
resources and which are responsible for
its low wages, widespread unemploy-
ment, lack of medical facilities, blight,
pollution, and supine governmental sys-
tem. And, unfortunately they find them-
selves facing reluctant health institutions,
which are not yet ready to make this
commitment to treating the causes of
illness. Des Callan
CLEVELAND'S HEALTH
ESTABLISHMENT
Cleveland " the mistake on the lake " -
is no accident. Its major problems - pov-
erty, pollution, racial strife are a pre-
dictable consequence of the city's eco-
nomic and social setting. Cleveland is a
city with an economic concentration in a
few heavy industries - iron ore, steel, oil
and steel using - companies (machinery,
trucks, automobiles) and a social concen-
tration in the core city of black and poor
whites surrounded by a white middle and
upper income suburban ring.
Unlike most midwestern cities, Cleve-
land is regarded by many as a progres-
sive leader in private social welfare and
health. It is the site of the first " red feather "
campaign for community - wide support of
private welfare agencies. It boasts a na-
tionally renowned medical school with a
reputation for innovative, community - ori-
ented teaching.
But, today, Cleveland's health record
13
belies its reputation. Preventive health.
care is sliding backwards as the City's
Health Department finds its budget cut by
almost 50 percent; increasing numbers of
poor patients are " dumped " from the
city's private, voluntary hospitals to the
single county hospital; expansion of the
lone OEO Neighborhood Health Center
proceeds at snail's pace with doubt that
the new center will ever open; and Uni-
versity Hospitals, the major source of
outpatient medical care besides the coun-
ty hospital, threatens to cut its outpatient
budget so severely that patients will ac-
tually be turned away. Cleveland, like a
host of mid western -
, industrial cities from
Pittsburgh to Milwaukee, faces a health
crisis.
But in Cleveland, perhaps more than in
most cities, this health crisis can be linked
to a health establishment, which is part
and parcel of the city's industrial, cor-
porate and banking elite. Rarely can it be
demonstrated so clearly that the leaders
of a city's major health institutions are
also the leaders of its business and so-
cialite community.
Health Institutions
Cleveland proper is divided into two
sub cities -, the east side and west side,
separated by the Cuyahoga River and its
surrounding industrial " flats. " The east
side is predominantly black with several
small enclaves of white European ethnic
people, ringed by wealthy white suburbs
like Shaker Heights. The west side is al-
most entirely white, including many poor
Appalachians, people of middle European
descent, and some Puerto Ricans.
More and more Clevelanders find it dif-
ficult to afford a private practitioner. In-
creasing numbers of them must resort to
outpatient clinics at Cleveland's major
hospitals. Meanwhile, the small voluntary
hospitals and even the major teaching
hospitals, caught within the city limits,
increasingly serve a suburban population.
On the west side there are only a few
small voluntary hospitals and most of
them do not offer outpatient services. This
leaves Cleveland Metropolitan General
Hospital (Metro) as the major hospital
with outpatient facilities on the west side.
It is also the only public acute care hospital
in the entire city. So, it must serve not only
a sizable indigent west side community,
but also those poor from the east side who
are either rejected from clinics and emer-
gency wards of the major private hospitals
or who choose to obtain their care at Metro.
Over 60 percent of Metro's patients pay
the dollar, to travel IV2 hours to come
from the east side by bus. Metro is
the typical public hospital: long lines of
14
patients wait in the registration area; the
outpatient clinics are flowerless and drab
and almost always overcrowded; inpa-
tient wards are understaffed; and there
are virtually no outreach or satellite serv-
ices in the community. As one west sider
(a long time neighbor of the hospital).
remarked: " City hospital's still thought
of as a butcher shop'round here. "
Virtually all of Cleveland's major priv-
ate hospitals are located on the east side.
They include such middle - sized voluntary
institiutions as Mt. Sinai, St. Luke's and St.
Vincent's hospitals, all of which have
outpatient clinics and emergency wards.
These hospitals were built, not to serve the
poor people now living on the east side,
but to serve the rich people who once lived
there.
The Cleveland Clinic is a 600 - bed vol-
untary hospital modelled after the Mayo
Clinic. It operates entirely on a fee for- -
service basis, with a staff of full time -
sal-
aried specialists. For those, who need
(and can afford) a kidney transplant,
open heart surgery or specialty diagnos-
tic work - up, it's a great place to go. There
are well appointed -
, wood panelled wait-
ing rooms; multi course -
dinners and beau-
ticians; even a plush motel, the Clinic
Inn, run by the Clinic for patients under-
going diagnostic check - ups. But there is no
outpatient department and only limited
emergency room services, so that the
black community which surrounds the
Clinic can hardly set foot inside it. Only
a third of the Clinic's patients come from
Cleveland anyway; the others like an
Argentine government official recently
flown to the Clinic for heart surgery, come
from the " whole world. "
Even though the Cleveland Clinic has
an international reputation, its signif-
icance in the Cleveland health system
pales in comparison to the University.
Medical Center (UMC). Located just
twenty blocks from the Clinic on Cleve-
land's east side, the University Medical
Center is the city's largest and most pres-
tigious medical complex. It consists of the
Case Western Reserve University Med-
ical School (CWRU) and its affiliated
University Hospitals, a seven hospital -,
965 - bed complex.
UCM is rich. Its yearly operating bud-
get totals more than $ 50 million. The med-
ical school budget alone has grown from
$ 2.2 million in 1950 (with 34 percent of the
funds coming from the federal govern-
ment) to $ 16.4 million in 1970 (with 59
percent from federal funds). With this 750
percent increase in funds in the last
twenty years medical student enrollment
at CWRU only increased 12 percent.
UMC is powerful. Its trustees include
some of the most powerful and wealthy
aristocrats in Cleveland. Old Cleveland
families such as the Humphreys, the
Hannas and the Prentisses poured money
into UMC in the early days. Today their
descendants and top officers of the family
companies still dominate the boards of
University Hospitals and of CWRU. For
example, University Hospitals'50 member -
board collectively holds 40 directorships
in Cleveland's top industries, banks and
utilities. (Many of the board members sit
on the boards of several corporations.)
The University Hopsitals'board is really
a family affair among Cleveland's aris-
tocracy; no less than 23 members are re-
lated to a least one other board member.
One of the coziest family groupings on
the board is that of the Hanna / Hum-
phrey Ireland /
dynasty (see " The Hanna
Industrial Complex, " by Edie and Fred.
Goff, published by NACLA, P.O. Box 57,
Cathedral Park Station, N.Y., N.Y. 10025,
350). There's Gilbert Humphrey (chair-
man of Hanna Mining), Gilbert's father-
in law - R. L. Ireland (retired director of
Hanna Mining), Gilbert's sister Mrs.
Royal Firman, Jr. and her husband (until
1969) and (until his death in 1970) Gil-
bert's father George M. Humphrey (former
Secretary of the Treasury under Eisen-
hower). In this year's Board elections for
University Hospitals, a descendant of the
Mather family and an Ireland were ap-
pointed trustees.
UMC is the city's most influential medi-
cal institution in an informal sense. It plays
a dominant role in the local Regional Med-
ical Program, and, according to a local
health planner, " Nothing happens in the
health area here without [UMC's] OK. "
But UMC's formal control over the Cleve-
land health system is even more impres-
sive. It has become the center of Cleve-
land's only " medical empire. " Affiliations
link CWRU and University Hospitals to
six other major Cleveland hospitals: two
large voluntary hospitals (Mt. Sinai and
St. Luke's); three county hospitals (Metro
for acute care, Highland View and Sunny
Acres for chronic care), and the VA hos-
pital. Together these hospitals include
4,100 beds out of 6,550 acute care general
beds in the city and 9,000 in the entire
county, and virtually all the outpatient
clinics in the city.
" Nothing happens in the
health area here with-
out UMC's O.K. "
-Cleveland Health Planner
UMC's affiliations flow primarily from
the fact that it includes CWRU Medical
School, the only medical school in North-
eastern Ohio. ,,WRU Medical School has
affiliated with all of the public hospitals in
Cleveland: the VA hospital, Metro and the
two county chronic care hospitals. These
affiliations allow the medical school to
send its students, interns and residents to
these hospitals for training. It enables staff
doctors at the affiliated hospitals to obtain
federal research grants. The medical
school benefits by enlarging its clinical
faculty at reduced or no cost. Similarly,
the recent affiliations with Mt. Sinai and
St. Luke's bring no direct funds to UMC.
All affiliations give more power to UMC.
Yet, UMC has only utilized its " empire
based " powers to further its own narrow
aims. It has certainly not been exemplary
in promoting new forms of health care de-
livery. With regard to the poor, UMC has
not initiated a single program of com-
munity outreach. And although UMC has
board members on Cleveland's only
OEO sponsored - Neighborhood Health
Center, it was the Department of Health
that took the initiative to apply for funds.
Likewise, UMC's outpatient clinics have
no satellites and UMC has been resistant
to community pressures to staff satellites
in Glenville and Hough.
What is more, during the spring of
1971, UMC cut back its clinic services by
13 percent and threatened to make addi-
tional cuts amounting to 33 percentL " re-
ductions which would effect the number
of patients ", according to the Plain
Dealer. UMC claims that funds had to be
diverted from the capital budget to meet
the deficit and that to prevent this from
happening again, clinic services will be
cut. Apparently, the Board of Trustees
thinks less of the health of Cleveland's
poor, than it does of building another new
edifice.
UMC has also carefully protected its sta-
tus as northeast Ohio's only medical
school. Its most serious rival has been
Cleveland Metropolitan General Hospital.
Metro, though a county hospital, boasts a
large scale research program. Metro has
aspired to become the " Massachusetts
General Hospital " of the midwest. It is
widely believed that pressure from UMC
trustees blocked Metro's bid for state funds
for a medical school during the 1960's and
is presently delaying Cleveland State Uni-
versity's request to the State Regents to
start a medical school on its campus.
The Controllers
Who controls Cleveland's health sys-
tem? At first glance, it would seem that
the managers of Cleveland's only " med-
ical empire " the deans, administrators.
15
doctors at UMC - hold all the power. But
deeper probing unearths another group
-the business and high society represent-
atives who, through their presence on the
boards of the leading health and social
welfare institutions, command the major
role in Clevland's health establishment.
For purposes of clarity, this group is sep-
arated into " business oligarchs " and " high
society. " Of course, this distinction is
somewhat artificial. Both the " business
oligarchs " and the " high society " repre-
sentatives overlap overlap,, control enormous
wealth and ultimately make decisions.
based upon their own political and
economic interests.
The Business oligarchs: Cleveland is
run by a group of no more than 50 men,
the men who direct its top corporations.
(See " The Cleveland Papers, " prepared
by the Cleveland Radical Research
Group, 2238 Grandview Avenue, Cleve-
land Heights, Ohio.) These men control
the city economically through their power
as employers of hundreds of thousands of
workers, culturally through their control
of the schools, newspapers and museums,
and politically through their ability to
finance mayoral candidates and lobby at
City Hall and in the State Capitol. They
exert their influence in every sector of
community life housing -
, education, so-
cial welfare and health. A few examples:
Willis Boyer, the president of Republic
Steel (Cleveland's largest company un-
til recently) sits on the boards of Univer-
sity Hospitals, CWRU, the Cleveland De-
velopment Foundation (a major funder
of urban renewal) and the Commission
on Health and Social Services (spon-
sored by the United Appeal). He has also
served on the boards of the United Ap-
peal and the Regional Hospital Planning
Council. In his business life, he is a director
of Sherwin Williams -
paint and chemical
company, National City Bank of Cleve-
land and the Marathon Oil Company, as
well as Republic Steel. (Republic and
9
Hospital Workers
Hospital workers, particularly non professional -
workers, have been among
the lowest paid of all American workers. In Cleveland in 1966, nurses'aides
(women) were earning a mean wage of $ 58.50 a week, while kitchen help (wom-
en) were earning $ 1.38 an hour and porters (men) $ 1.60 an hour. In addition to
low wages, hospital working conditions have been poor, with no avenue for
redress of grievances. To fight these injustices, hospital workers have struggled
to form unions. In Cleveland, the conflict between the hospital workers and the
administrators / trustees surfaced in the mid 60's -.
As early as 1963, University Hospitals bitterly attacked unionization efforts
among its workers. Part of the union anti -
campaign was a letter to all em-
ployees: " University Hospitals, however, as your employer, is opposed to rec-
ognizing any union or organization which seeks to act for hospital employees.
This has been our position for many years. " As reasons, they offered: (1) UH
has a good record of improving wages: 2 () the ultimate threat of a union is a
strike " which in a hospital is unthinkable ", and (3) as a non profit -
institution,
UH is not required by law to recognize a union.
Not much union organizing occurred until 1967. Then Local 47 of the Build-
ing Service and Maintenance Workers led a year - long strike at St. Luke's
Hospital for higher wages, better working conditions and the right to organize
hospital workers at St. Luke's. Tensions ran high. Several trustees'homes were
firebombed, and many striking employees were arrested.
For the first six months, the trustees refused to negotiate with the workers.
An arbiter was called in, but was unable out work out a settlement. After ten
months. Mayor Stokes and the City Council threatened to pass a labor rela-
tions law, requiring non profit -
institutions (such as hospitals) to recognize any
duly elected union. Pressure from throughout the health establishment was
placed on St. Luke's to recognize Local 47, since other hospitals did not want
to be forced to hold union elections.
St. Luke's gave in. Subsequently, Local 47 led successful drives to unionize
maintenance workers at Forrest City and Women's Hospitals, and presently
has cases in court against Lutheran and Fairview General Hospitals. However,
attempts at unionization have been squashed at the big private hospitals on
Cleveland's east side - Mt. Sinai, UMC and the Cleveland Clinic.
The model union buster -
has been Mr. Sidney Lewine, administrator at Mt.
Sinai. Lewine has his administration approach each long term -
employee indi-
16
Sherwin Williams are among Cleveland's
top polluters.)
George Karch, the chairman of Cleve-
land Trust Bank, sits on the boards of
CWRU, Cleveland Clinic, Health Hill (a
private pediatric hospital), the Cleveland
Foundation and the Cleveland Develop-
ment Foundation. He is a director of Ogle-
bay Norton (iron ore mining), Reliance
Electric Company, Cleveland Twist Drill
Co., Medusa Portland Cement, Warner
and Swasey (machine tools). White
Motor Co., North American Rockwell
Corp., and over ten smaller firms.
J.D. Wright, chairman of TRW Corp.
(auto and airplane parts), sits on the
boards of University Hospitals, the Cleve-
land Foundation and, formerly, the United
Appeal. He is a director of Republic Steel,
Goodyear Tire, National City Bank, Sher-
win Williams and Eastman Kodak.
H. Stuart Stuart Harrison, chairman of
Cleveland Cliffs Iron Co., is on the board
of University Hospitals, the Cleveland
Foundation and the Cleveland Develop-
ment Foundation. He is a director of over
19 companies, including Jones and Laugh-
lin Steel, Medusa Portland Cement,
Cleveland Trust Bank, White Motor Com-
pany, Weatherhead (ordnance), Mid-
land Ross and LTV (a conglomerate).
These men, plus others not listed, hold
the ultimate power over long range -
plan-
ning for Cleveland's health institutions.
As hospital and medical school trustees,
as members of important city wide -
health
funding and planning bodies, they con-
trol hospitals'long term - construction and
expansion programs and set the overall
tone of health policy in Cleveland.
But the corporate interests of these men
often run against the health interests of
the people of Cleveland. They direct the
companies which have poisoned Lake
Erie and made Cleveland's air a health
hazard. They direct the banks which re-
fuse to finance decent homes for poor peo-
ple. They are members of the Chamber
Union Story
vidually, with a personal appeal for the hospital and against the union. Short-
term employees are reached through the most sympathetic long term -
workers.
This, combined with judicious letters and selective pay raises, resulted in union
defeat by 12 votes in 1968.
Similar tactics have been used at UMC and the Cleveland Clinic. In 1968,
James Harding, the Cleveland Clinic's administrator sent the following letter
to all employees: " We are sure you are aware that for the past few months
a'dues hungry'building service union has been pressuring Cleveland Clinic
employees to sign cards... You should be warned that in an attempt to win
an election and take over all Cleveland Clinic employees, this union will say
anything and promise anything which it thinks will persuade you into voting
it into power. When you read this slick union propaganda, always keep in
mind that employees in another hospital who fell for the union found them-
selves out on the sidewalk without a job, without pay, in a strike that lasted
for nearly one year. " '
In Cleveland's public hospitals, the struggle was less protracted. In 1967,
Local 1746 of the American Federation of State, County and Municipal Em-
ployees (AFSCME) conducted a six month -
strike at Sunny Acres Hospital (a
public chronic care facility). Rather than face strikes at the two remaining
public hospitals (Metro and Highland View), the county government recognized
the union for all three hospitals.
In 1969, nurses at St. Vincent's Hospital fought to get the Ohio Nurses'Asso-
ciation recognized as their bargaining agent. Concerned primarily with issues
of working conditions and " dignity ", the nurses walked out. For two months,
St. Vincent's administrator refused to recognize the Ohio Nurses'Association,
until City Council forced capitulation by passage of the Cleveland Labor
Relations Law.
Responses to these organizing efforts have consistently met with bitter oppo-
sition. Striking non professionals -
got little or no support from their professional
co workers -
. Professional associations did not want to be linked with " workers
struggles ". j one ^ Jot
doctor supported the striking nurses at St. Vincent's. White
workers were separated from black workers. Out of the 450 striking workers at
St. Luke's, 448 were black. These divisions maintained through racism, sexism
and professionalism stood the hospitals in good stead.
17
of Commerce which consistently lobbies.
for lower corporate taxes, hence inade-
quate Medicaid and underfinanced pub-
lic health services. They direct companies
whose indifference to workers'safety
leads to hundred of industrial accidents
each year in Cleveland. To them, hos-
pitals do not represent health care insti-
tutions so much as they represent concen-
tration of wealth and real estate. Control
over the city's health institutions is just
one more way that these men control the
life of Cleveland.
High Society: The power of the busi-
ness oligarchs in the city is economic, and
is based on their institutional positions as
top officers and directors of leading cor-
porations. " High society " members of the
health establishment, on the other hand,
derive their civic importance simply
from who they their are - family and so-
cial connections, their membership in ex-
clusive clubs, etc. Their names appear-
not in the business section of the paper-
but in the " society " section, in Cleve-
land's Blue Book and the Social Register.
They are Cleveland's cultural and social
arbiters, whose influence extends from the
symphony and the Garden Center to the
hospitals, social service agencies and
foundations.
To be sure, many of the high society
health leaders were once business oli-
garchs or descended from families who
made their fortunes in coal, iron ore, oil
or shipping. Families such as the Boltons,
the Oglebays, the Hannas, the Severan-
ces and the Mathers, after making their
fortunes, set out to make Cleveland a great
cultural and medical capital of the mid-
west.
In many cases, their current descend-
ents have sold - out their shares in the
family corporation, but retain their con-
trol over the family foundation, e.g., the
Bolton Foundation, the Elizabeth Sever-
ance Prentiss Foundation, or the various
Mather and Hanna Trusts (all of which
fund health servcies). They also sit on
hospital and health agency boards, hav-
ing " inherited " these positions along with
the family wealth and social position.
In the area of health, the old family -
members of high society cluster, not sur-
prisingly, around the University Hospitals
board. The Humphrey / Hanna / Ireland
family grouping has been mentioned.
Another example is Severance Milliken
(of the old Severance family as well as
the Millikens) who sits on the Boards of
University Hospitals, St. Luke's Hospital,
and the Cleveland Development Founda-
tion. Then there are the Boltons, for whom
CWRU's nursing and dental schools are
named. Mrs. C.C. Bolton was on the board
18
of University Hospitals until her death.
last year, while Mr. C.B. Bolton (board
chairman of the exclusive Hawken
School, a prep school) served on CWRU's
board.
There are two other categories of health.
leaders in Cleveland, both subordinate
to business oligarch and _ society - dom-
inated boards of trustees. These are men
who lack economic or social leverage of
their own, and are important only be-
cause of the staff positions they occupy
in health institutions or agencies. They
are " professionals " -doctors and admin-
istrators. They have power in the internal
decision - making within their institutions:
decisions about personnel, administration
and medical services. But their long-
range decision - making powers are limit-
ed.
The Promoters: These are the most
visible day day - to - " operatchniks " of the
health establishment. They participate in
the decision - making of their own institu-
tions, often spearheading new programs
with high public relations output. They
are involved in the doings of the Hospital
Association and the Regional Medical
Program. They consult with the Cleveland
Foundation and the Welfare Federation
and lobby at the State Capitol for favor-
able legislation. They are the institutional
representatives to the public eye. Among
these leaders are Dr. Frederick Robbins,
Dean of CWRU Medical School; Mr.
Samuel Wittman, Associate Dean of
CRWU Medical School; Mr. Stanley Fer-
guson, chief administrator of University
Hospitals; Mr. Sidney Lewine, administra-
tor of Mt. Sinai Hospital. Although these
leaders appear to have considerable in-
dependence within their spheres, their ob-
jectives and activities must conform to
those of the trustees that comprise their
boards.
The front - men: These men are not truly
health leaders at all, but they are
easily mistaken for leaders. The best ex-
amples are the directors of the City Health
Department and of the Metropolitan
Health Planning Commission. Both take
flack from health consumers for unpopu-
lar health policies, although both belong
to essentially powerless agencies. For
example, Dr. Frank Ellis of the City's
Health Department is often blamed for
the city's failure to staff the newly built
west side health clinic. But it's not his fault
that the city hasn't the funds to occupy
the expensive new building. Witness his
impotence when the mayor, last winter,
subjected the Health Department to a dis-
astrous 50 percent cutback. When Dr. Lee
Podlin, director of the Metropolitan Health
Planning Commission was urged by local
activists to take a strong stand against
UMC's threatened cutbacks in clinic ser-
vices (due to inadequate Medicaid reim-
bursement and the Trustees unwilling-
ness to continue subsidizing poor people's
medical care), he maintained a gentle-
manly silence. " That isn't how things are
done around here, " he said.
Are the health leaders, specifically the
businessmen and socialites, just a ran-
dom collection of names, or do they com-
prise a coherent establishment? There is
no evidence that they sit down together
periodically to hammer out health policy
for the city of Cleveland. But there is
evidence that they share an _ implicit
health policy and that they use hospitals
for their own narrow purposes. These
points are well illustrated by two case
examples: the role of Cleveland's health
leaders in resisting prepaid group prac-
tice and in promoting urban renewal.
Community Health Foundation
The Community Community Health. Foundation
(CHF) was founded in 1962 by the steel-
workers ', painters ', plumbers ', retail
clerks ', meatcutters ', machinists ', and au-
tomobile workers'unions. It was con-
ceived as a traditional prepaid, group
practice program providing doctor's of
fice and home visits, hospitalization and
limited psychiatric care but excluding
dental care and drugs. Membership in a
group, usually a union, was prerequisite
for joining.
For the average Clevelander, prepaid
group practice represented a real improve-
ment in health care delivery. It meant
that medical care could be obtained with-
out regard to its cost and that preventive
check - ups were encouraged. The entire
family could be cared for under one roof,
with a continuous medical record from
doctor's office to the hospital, and an end
to fragmented health services. CHF was
designed to make minimal reforms, but
not to solve the major shortcomings of
the American health system, such as the
availability of health care for the poor.
(See November, 1970 Health - PAC BULLE-
TIN for analysis of prepaid group prac-
tice.) Nonetheless Cleveland's " health
establishment " resisted its development
strongly.
The first sign of resistance occurred in
June, 1962. After eleven months of nego-
tiations between consultants hired by the
unions and UMC, the word came down:
UMC would not affiliate with CHF. This
came as a shock to those associated with
CHF. The negotiations had proceeded
well, with considerable support from most
of the chiefs of service at University Hos-
pital, including Dr. Robert Ebert, then
chief of medicine, now dean of Harvard
Medical School. Although there was some
dissension among the doctors, none wish-
ed to block the program. The proposal
was novel. CWRU was to be the site of
the first prepaid group practice program
affiliated directly to a medical school.
(Since that time, many medical schools
have established such programs, includ-
ing Harvard).
For CHF the benefits of a medical
school affiliation were clear. First, it
would guarantee high quality medical
practice, at least as defined by the med-
ical school. Second, perhaps more im-
portant, it would assure adequate physi-
cian manpower for the program. And
third, it would guarantee a back - up hos-
pital for CHF admissions.
For the medical school, a prepaid group
practice provided a convenient " captive "
population for teaching, as well as the
opportunity to shift the focus of medical
student and house staff training from
purely hospital - based medicine to out-
patient medicine medicine.. The importance of
finding a " new " teaching population was
uppermost to those like Dr. Ebert who
favored Medicare and other national
health insurance programs which, by
providing new medical opportunities for
indigent patients, threatened to eliminate
their traditional use as " teaching ma-
terial. "
Why then did UMC turn CHF down? In
part, UMC refused because the decision
was not left up to its chiefs of service.
Apparently, the issue reached University
Hospitals'Board of Trustees. Two reasons
are commonly given to explain the
Board's negative response. The first re-
solves around George M. Humphrey, one
of the most prominent members of the
Board. Humphrey had drawn up the con-
stitution and by laws - of University Hos-
pitals in 1920. Shortly thereafter he be-
came President of the M.A. Hanna Com-
pany and in this capacity, developed a
strong anti labor - bias, which he often
expressed while later serving as Eisen-
hower's Secretary of the Treasury. CHF
had been initiated and funded by labor
unions. Humphrey wasn't about to let
" his " medical center affiliate with a union-
dominated health plan.
The clincher, however, was the drop in
donations to UMC's $ 54 million expansion
program. In April, 1962, UMC announced
a dramatic building program which in-
cluded new nursing, dental and medical
school buildings. Shortly thereafter, news
about the potential UMC - CHF affiliation
was leaked to the press. Conservative
alumni and other potential funders ap-
parently withdrew their support from
UMC's expansion drive. When it was all
19
over, CHF was told by one UMC spokes-
man, " You've cost us over $ 2 million al-
ready without even affiliating. "
UMC's refusal to affiliate with CHF was
a severe blow to the newly incorporated -
organization. Planning Planning and year operating
goals were set back by one year at least.
The whole project appeared in jeopardy.
Despite the risks, the labor unions back-
ing CHF insisted that plans move forward.
On July 4, 1964, CHF opened the doors
of its new outpatient building located on
the east side. Capital for construction
had been raised through loans amounting
to $ 500,000 from the unions and $ 650,000
from Central National Bank. The health
plan grew rapidly. Within four years,
membership passed 30,000. A second out-
patient facility was opened in Parma, a
southwestern suburb of Cleveland.
But CHF was plagued with economic
problems. Many of these stemmed from
the lack of a CHF owned -
hospital. As
hospital costs leaped upward in the post-
Medicare era, CHF was unable to negoti-
ate the same reduced hospitalization
rates as Blue Cross. CHF ended up pay-
ing as much as $ 176 / day for patients
hospitalized at University Hospitals. Fur-
thermore, Blue Cross lagged in raising its
premiums so that, to remain competitive
with Blue Cross, CHF had to postpone
needed increases in its own subscriber
premiums. The final economic straw was
the purchase of a proposed new hospital
site in Independence, Ohio (south of
Cleveland) for $ 400,000. After buying the
land, the town unexpectedly denied CHF
the necessary zoning clearances.
Rising economic problems threatened.
CHF with extinction. Cleveland's business
and society " health leaders " now had the
opportunity to rescue the program. Its
dramatic growth had demonstrated CHF's
vitality. But the banks closed their
doors. Even Central National, which had
advanced the original loan to build the
east side center, reneged on its promises
to help finance the new hospital. CHF
was forced to turn outside the Cleveland
community for help.
In 1968, CHF sought the aid of the multi-
million dollar west coast Kaiser Founda-
tion Health Plan (with 1970 revenues of
$ 313 million). After several months of
negotiation, an agreement was reached.
Kaiser offered $ 3.5 million to construct
a CHF hospital in Cleveland, in return
for virtually complete control of the pro-
gram. CHF became the Kaiser Community
Health Foundation (KCHF) and Kaiser
demanded that of the new nine member
board six seats be reserved for Kaiser.
Until the merger with Kaiser, CHF had a
decidedly local flavor. Although it had
been established with the aid of nation-
20
wide consultants, CHF had been initiated
and controlled by local Cleveland labor
unions. This had given CHF a measure of
subscriber control. With the entry of
Kaiser, and its persistent opposition to
any form of subscriber control, CHF lost
its independence. Industry now controlled
KCHF and would operate it like the " busi-
ness " that most prepaid group practice is
about (see Health - PAC BULLETIN, No-
vember, 1970).
The case of the Community Health
Foundation illustrates how Cleveland's
" health leadership " has thwarted the de-
velopment of improved forms of health.
care delivery through prepaid group prac-
tice. These same forces have collabo-
rated in using hospitals for their own.
ends, in the second case presentation:
Cleveland urban renewal. For it is here,
that Cleveland's major hospitals became
pawns in a larger enterprise - black re-
moval by white institutional real estate
interests.
Urban Renewal
Since the mid 1950's -, the central part
of Cleveland's east side has been almost
entirely black. Blocked from settling in
better neighborhoods, blacks coming from
the South were forced to crowd into al-
ready deteriorated areas, like Hough,
Central and Glenville on the east side.
Rising black unemployment in the late
fifties and early sixties led to more crowd-
ing and further deterioration. The slums
extended from the heavy industrial flats.
around the Cuyahoga River and _ the
downtown commercial district on the
west, to the university and upper class
suburbs on the east.
As early as 1954, Cleveland's top busi-
ness leaders, the heads of Republic Steel
and Cleveland Electric Illuminating Com-
pany (the chief utility), decided to take
action to save the city from " blight " as
they called it. First, they formed a non-
profit corporation, the Cleveland Develop-
ment Foundation (CDF) to promote urban
renewal in Cleveland. With over $ 1 million
in contributions from Cleveland's top 83
firms and a $ 5 million grant from the
Hanna Fund, CDF was supposed to pro-
vide " seed money " and planning assist-
ance to the city government's urban re-
newal agency. Actually, CDF quickly
supplanted the city and became a kind of
private " government " for urban renewal.
In addition, the University Circle Devel-
opment Foundation (UCDF) was founded
in 1957 to concentrate on redevelopment
of CWRU and UMC and their environs.
Trusteed by top board members from
University Hospitals, Case and Western
Reserve Universities and initiated by a
grant from the Mather family, UCDF rep-
resented the same interests as CDF.
The pattern of urban renewal under-
taken by the two development founda-
tions strongly suggests that they shared
a common strategy to reclaim the east
side from the blacks. First, urban renewal
on the east side has been primarily used
to create land for industrial, commercial
and institutional re use -, not for low - in-
come housing. Second, the urban renewal
projects comprise a dumbbell - shaped
area. At one end is Erieview, the CDF-
sponsored downtown renewal project,
slated for office buildings, luxury apart-
ments, malls and fountains; at the other
end is University Circle, developed over
the last ten years into a gleaming island
of cultural institutions. Along the bar of
the dumbbell lie the University - Euclid
renewal project, the Cleveland Clinic and
Cleveland State University. Just south of
the bar is St. Vincent's Hospital's urban
renewal area.
A former top staff member of CDF ad-
mitted that this arrangement was not acci-
dental, but the result of a conscious stra-
tegy (a " planning concept, " as he put
it). That strategy was, first, to build up
two white dominated -
enclaves at either
end of the east side Erieview -
on the
northwest and University Circle on the
southeast and then connect these en-
claves by a white corridor running
through the ghetto.
The Hospitals were willing instruments.
in the implementation of this strategy:
St. Vincent's, with planning funds from
CDF, displaced over 1200 families, 95% of
them black, to make room for luxury high-
rise apartment buildings. When no de-
velopers could be found for the high-
rises, the land was sold, at reduced rates,
to Cuyahoga Community College, to the
Boy Scouts and the Salvation Army for
new headguarters, and to some lesser vol-
untary agencies. At the outset of the proj-
ect, St. Vincent's board chairman de-
scribed the project's relation to CDF's
overall plans with touching humility:
" We admit that Charity Hospital [St.
Vincent's] represents but a small part of
this broad development picture. The hos-
pital is but a tiny plot of ground, 10% of
the area involved in the entire plan [the
entire St. Vincent's plan]. But in our
small way we wanted to be part of this
movement to reawaken the heart of
Cleveland. "
Cleveland Clinic in the early sixties,
revealed its plans to expand four blocks
along Euclid Avenue (the main artery of
the " white corridor ") and cover a total
of seven square blocks. By 1965, it had ac-
quired all but 25 percent of the needed
land, and began to look to urban renewal
as a way of getting the rest. The clinic pro-
ceeded to hire a full time - urban renewal
coordinator and arranged with UCDF to
get a piece of the University - Euclid proj-
ect pie. The Clinic set up its own multi-
institutional development foundation in-
cluding the Health Museum, Women's
Hospital (a small voluntary hospital)
and the Harshaw Chemical Company,
which was planning to build a research
lab in the area. Since then, the Clinic
has decided that urban renewal meant
" too much red tape, " and returned to its
private land grabbing -
operations. This
meant that, instead of having the right
of eminent domain to displace die hard -
landowners, the Clinic has, according to
residents of the area, resorted to intimida-
tion to secure the last little lots. Even
though the Clinic has broken off its plans
to work directly with UCDF on the Uni-
versity - Euclid project, it retains ties to
UCDF. The present director of Cleveland
Clinic's expansion program Neil Car-
others, is the former president of UCDF.
(Prior to that he was an executive of the
construction firm which did most of the
re building -
of University Circle for UCDF.)
University Hospitals and the CWRU
medical school were not simply instru-
ments of the overall strategy. As key in-
stitutional members of UCDF they were,
in effect, co conspirators -
. The boards of
University Hospitals and the University
are closely interlocked with those of CDF
and, of course, UCDF. University Hos-
pitals and the medical school, which to-
gether garnered over half the funds spent
on University Circle redevelopment, must
be considered chief beneficiaries of
UCDF's implicitly racist policies.
When UCDF went into business in
1960, then president -
Neil Carothers, ex-
plained: " " On On several several sides University
Circle has fine stable neighborhoods, but
on other sides are badly deteriorating.
sections where crime and disease are sky-
rocketing. And no apple stays good when
there are bad apples around it... Some-
thing had to be done. [UCDF's] 20 year -
development plan is the answer. "
UCDF's short - term answer was to hire a
private police force to keep the " crime
and disease " out of University Circle.
proper. Its long term answer was the Uni-
versity - Euclid urban renewal project. Os-
tensibly designed to rehabilitate slum
housing, the project actually worked to
force out the slum dwellers. By 1966,
only 11 percent of the homes slated for re-
habilitation had had even perfunctory re-
pairs. Hundreds more home were destroy-
ed to make room for commercial and
institutional building, forced people to
crowd even more tightly into the remaining
dilapidated structures. Then, because the
area was slated for urban renewal, the
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city suspended enforcement of housing.
codes and cut back on garbage and police
services; landlords cut back on home
maintenance. Rats multiplied, garbage
piled up, and disease spread - right on
the doorstep of Cleveland's most pres-
tigious medical complex. It was UCDF's
" gift " of urban renewal to the people of
Hough that set the stage for the week-
long riots of 1966.
The net results of Cleveland's east side
urban renewal projects, for which the
medical institutions deserve SO much
credit, can be summarized quickly:
* Twice as many housing units were
destroyed by urban renewal aass
were
built, leaving Cleveland with a severe
housing shortage: Cleveland now has
55,000 substandard housing units and the
number is growing every year, but the
city's vacancy rate is a dangerously low
1.5 percent.
*
Over 4500 families, almost all black,
were displaced by urban renewal. Only
40 percent of these were relocated by
government agencies, the other 60 per-
cent had to fend for themselves. Of those
who were " lucky " enough to be relocated
by the city, 56 percent were sent to areas
which were already over 90 percent
black; 89 percent to areas which were
over 50 percent black. The St. Vincent's
and University - Euclid projects were re-
sponsible for most of the displacement.
Cleveland's program is the classic
case of urban renewal as black removal.
Thomas Westropp, president of a minor
Cleveland bank, said in 1970: " For some,
the urban renewal program has worked
very well indeed. Hospitals and educa-
tional institutions have been constructed
and enlarged. So have commercial and
industrial interests and many service or-
ganizations all with the help of urban
renewal dollars. With respect to housing,
however, the urban renewal program has
been a disaster... I wish I could believe
that all of this was accidental and
brought about by the inefficiency of well-
meaning people - but I just can't. The
truth, it seems to me, is that it was plan-
ned that way. "
The history of Cleveland's urban re-
newal programs illustrates how the city's
health establishment, both business oli-
garch and socialite, uses health institu-
tions to advance their own interests.
Cleveland's east side " blight " (read
blacks) had to be cleared to preserve the
city's downtown office center and uni-
versity cultural area. Through the pro-
cess, Cleveland's major east side medical
institutions became " real estate empires, "
as well as medical empires.
The story of the Community Health
Foundation suggests that these same
health leaders have retarded the devel-
opment of health reforms (however
limited) for more than the poor. As a
prepaid, group practice program, CHF
serves predominantly unionized workers
Lboth black and white. Yet CHF has met
with persistent, if not overt, resistance
from various elements within the health
establishment.
Both case examples, point to the exist-
ence of a health establishment beyond
the hospital administrators, the deans,
the heads of planning agencies and
health departments. There is no reason
to believe that the interests of this health
establishment coincide with the interests
of the majority of Cleveland health con-
sumers. To a man and to a woman,
Cleveland's elite does not live in the city
proper, but in the eastern suburbs. None
of them uses the hospital clinics, the
wards, the smaller hospitals and the pre-
paid group practice that the average
Clevelander must depend on. In fact,
there are reasons to believe, that the in-
terests of the health establishment actu-
ally conflict with those of the average
Cleveland health consumer. The former
looks to a health institution as a source
of prestige or as a block of real estate;
the latter looks to it as a source of basic
survival services. The same " boss " on the
job is ultimately " boss " of the health sys-
tem. For in Cleveland, perhaps more
clearly than in any other American city,
the health establishment is the city's
" ruling class. " - Cleveland Women's
Health Research Group
THE AMERICAN HEALTH EMPIRE:
POWER, POLITICS, AND PROFITS
A REPORT FROM THE HEALTH POLICY ADVISORY CENTER
The book is published by Random House and available at your bookstore in hard cover
for $ 7.95. The Vintage Paperback is $ 1.95.
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