Document RaqZgvmnbV2pNgE2dM0M7qLzB
Health
Policy
Advisory
Center
No. 45 October 1972
HEALTH / PAC
BULLETIN BULLETIN
Editorial:
PUBLIC
MEDICAL
SCHOOL
The downhill slide of New York City's
18 municipal hospitals reached crisis pro-
portions in the early'60's. The City, always
willing to cut back municipal services to
relieve itself of the headache of providing
health care, turned for relief to the private
hospitals and medical schools. It signed a
series of affiliation contracts with the pri-
vate hospitals, which agreed to staff the
municipals in return for a slice of the
City's already hard pressed -
hospital bud-
get. While this made city hospitals almost
totally dependent on the voluntary teach-
ing hospitals, it did not relieve the crisis
of the municipals.
Unfortunately, the interests of the new
staff lay not in providing quality health
care for those who use the municipal hos-
pitals, but in pursuing their teaching and
*
research careers. Nor did the City provide
the money to improve facilities or raise
the wages of non affiliated -
, non profes- -
sional staff. As a result the municipals
were further undermined relative to the
voluntaries. The upshot was that the vol-
untaries now had even more money, staff
positions and power to shape the direction
of health care for the entire city.
The establishment of a new medical
school in New York City could serve as a
catalyst to reverse this tide and move a
long way toward relieving the crisis of
the municipal hospitals. Properly devel-
oped, the medical school would be public,
oriented toward the training of third world
students, and incorporated into the muni-
cipal hospital system.
This was part of Health - PAC's recom-
mendation for a Public Health Sciences
College, presented at affiliation hearings.
of the Health and Hospitals Corporation
in February, 1972. It is also similar to the
proposal for a Medical School of the City
University of New York (MSCUNY), ad-
vocated by Dr. William Stahl, Chief of
Surgery at Bellevue Hospital.
To reflect the priorities of urban New
York City, with greater emphasis on train-
ing community practitioners and studying
urban medical problems, such as pollu-
tion, lead poisoning and drug addiction,
a new medical school must be public. The
incorporation of the municipal hospital
system with the medical school could go
a long way toward enhancing the hos-
pitals'prestige, opening up challenging
new teaching and research possibilities,
and making it easier to attract talented
and dedicated staff to the municipal hos-
pital system. It could also introduce a per-
manent new source of staff for the muni-
cipals, namely, the medical students who
have trained there. Affiliation with a
school such as CUNY, with its free tuition
and open enrollment at the undergradu-
ate level, offers an opportunity for the
medical school to reflect the racial and
ethnic composition of New York City.
The major weakness of the MSCUNY
proposal in its present form is one of con-
stituency. Advocates of this proposal have
so far directed most of their efforts to re-
cruiting the support of prominent indi-
viduals such as Robert Wagner, former
New York Mayor and chairman of the
Citizens Commission on the Future of
CUNY. Possibly they can in this way suc-
ceed in establishing a medical school, but
the nature of the individuals recruited and
their ties to the present medical and polit-
ical establishments will inevitably result
in the reshaping of this proposal and the
removal of its more promising features.
What is badly needed now is the or-
ganization of solid grassroots support for
such a medical school proposal in the
community, at the 18 municipal hospitals
and at the community and senior colleges
of CUNY. Only in this way can the pro-
gressive intent of the proposal be main-
tained and enlarged upon. The possibil-
ities for establishing the medical school
are real, but the time for organizing is
short.
MEDICAL
SCHOOL
SWEEPSTAKES
Medical schools are experiencing their
own baby boom. Never before in this cen-
tury have so many new medical schools
been opened. Of the existing 103 medical
schools, 15 have been born since 1965 and
12 more are in development stages, to
be opened by 1975 (see chart).
The gestation and birth of a new med-
ical school is a long and arduous process.
It is also an important process to under-
stand because of the issues it raises and
the political forces it involves.
Whereas medical schools of yester-
year were built where medical need, uni-
versity prestige and financial resources
dictated, today's new medical schools
grow up in a more complex environment.
The issues of racial composition, new jobs
and job mobility for health workers, com-
munity service and public accountability
confront " new school " planners from the
beginning. And these issues evoke new
political forces. No longer is the decision.
to build a new medical school left only to
the medical establishment and its philan-
thropic allies. Now business and industry,
politicians and government, even labor
unions and community groups are in-
volved..
Nowhere is this more true than in New
York City. Any new medical school for
New York City will have to be born from
new political forces and raised on new
issues. In part, this is due to the fact that
New York City already has seven medical
schools and a well entrenched -
private
medical establishment, which will most
likely oppose plans for new schools. For
this reason, many observors doubt that
there will be a new medical school in New
York City in the foreseeable future.
But evidence suggests the contrary:
there will be a new medical school in New
York City and soon, perhaps as soon as
1975. Consider the following:
2
@ In the last year, proposals for a new
medical school for New York City have
surfaced from many different quarters.
This BULLETIN explores just four such
proposals: the Queens Medical School;
the Harlem Medical School; the Commu-
nity Medical School; and the Medical
School of the City University of New York
(MSCUNY). Each proposal has a differ-
ent emphasis and each represents a blend
of new and old political forces. Together,
the proposals indicate a groundswell of
interest in a new medical school for the
City.
OE There is space for an additional
medical school in New York City. With
New York Medical College leaving the
City for the Westchester suburbs, there
is a " vacuum " that begs to be filled. This
space may be defined statistically: com-
pared to Boston or Philadelphia, which
have less than 700,000 people per medical
school, New York's 1.3 million people per
medical school is high. In particular, the
Borough of Queens, with a population of
over two million people, the fastest grow-
ing borough in the City, does not have
even one medical school. Or, it may be
defined racially: New York City has the
largest population of Blacks and Puerto
Ricans in the country, yet it has no third
world medical school. However it is de-
fined, New York City still has room for
another medical school.
M@ Also, money is available to start
medical schools. The Comprehensive
Health Manpower Training Act of 1971
gives each new medical school $ 10,000
per student expected to be enrolled in the
first year, one year before the school
opens; $ 7,500 per student in the first year,
$ 5,000 in the second year and $ 2,500 per
student in the third year of the school's
operation. In addition, construction loan
guarantees and interest subsidies are
available on a priority basis for new med-
ical schools.
--@ Besides money to start schools, there
is an increasing amount of money avail-
able to finance their operation. Though
many medical schools are presently in
financial trouble, that problem arises from
the shifting base of medical school financ-
ing. In 1947, 43 percent of the operating
budget of the nation's medical schools
came from state and local governments
and philanthropy. By 1968, these sources
accounted for only 18 percent of operating
costs, while the federal government had
assumed 40 percent of these costs, mostly
in the form of research subsidies. With the
passage of the Comprehensive Health
Manpower Act of 1971, the federal gov-
ernment is shifting from support of med-
ical education through research to direct
payments to medical schools on the basis
of the number of students they enroll (see
Health - PAC BULLETIN, November, 1971).
M@ The climate for starting new medical
schools is extremely favorable. After long
neglect, many people are clamoring for
an end to the doctor shortage. Even the
conservative AMA, which historically has
promoted " growth zero - doctor -"
by limit-
ing the number of entrants and graduates
from American medical schools, asserts
that " medical manpower [is]... the most
important problem in the health field. " It
supports the effort to double medical
school enrollment in first year classes to
15,000 by 1975. It is estimated that almost
40 percent of this increase will be in new
medical schools.
M--@ More than just increased numbers of
doctors is involved. New medical
schools mean larger budgets and more
prestige for the universities with which
they are affiliated. They also ease expan-
sion into manpower training programs
for allied health professionals. And, they
can give a community's sagging economy
a real shot in the arm. In the words of one
new medical school proposal: " The large
operating budget of a medical center is
primarily spent on thousands of person-
nel, who in turn spend their money locally
in the purchase and maintenance of
homes, clothes, groceries, amusements
and all that can materially influence the
local economy. Medicine is'big business "
... in the current fiscal year the aggre-
gate national dollar commitment to med-
ical research is about $ 2.5 billion... Any
school of medicine is in a position to
channel large funds annually into its com-
munity's economy. " Like military bases,
medical schools have become keenly
sought after prizes, with even better pros-
pects for growth and stability.
The Next is the Last
If there is lots of evidence pointing to a
new medical school for New York City,,
then it is also likely that that next school
will be New York City's last new medical
school for decades. With stabilization of
the City's population and the growth of
the suburbs, the demand for additional
CONTENTS
2 Medical School Proposals
15 Health Insurance Plan
medical schools will shift outside the city
line. Already, the sprouting of Stonybrook
on Long Island and the New Jersey Med-
ical College in Newark are testaments to
this future direction of growth.
In addition, though there is no federal
government regulatory agency for med-
ical schools, their accreditation is becom-
ing more rigorous. The recently renamed
Joint Liaison Committee on Undergradu-
ate Medical Education [comprised of six
representatives each from the AMA's
Council on Medical Education and the
Association of American Medical Col-
leges (AAMC), and one representative
each from the federal government and
the " public "] has started this process. It
has enunciated principles for accredita-
tion, including affiliation with a university;
demonstration of adequate financial ca-
pacity; and appointment of competent
faculty, including the clinical attending
staff of a general hospital. The Carnegie
Commission Report on Medical Education
(see BULLETIN, November, 1971) sug-
gests limiting the number of new medical
schools to nine for the entire country. It
seems likely that stricter principles, based
on the distribution of present medical
schools, will undoubtedly be considered.
in the future. As the national process con-
solidates, New York City's prospects for
new medical schools will decline.
If New York's next is New York's last
medical school, then there's lots at stake
in its creation. It is important to establish
criteria for measuring and evaluating ex-
isting and future proposals. The following
list of questions provides a foundation for
establishing such criteria:
Will it be public or private? Although
all medical schools rely on public financ-
ing, this does not guarantee public control
or accountability. Even an affiliation to a
public university, such as Mt. Sinai's affil-
iation to the City University of New York
Published by the Health Policy Advisory Center, 17 Murray Street, New York, N. Y. 10007. Telephone (212) 267-
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is published bi monthly -
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Cooper, Chicago; Barbara Ehrenreich, John Ehrenheich, Long Island; Kenneth Kimmerling, New York City. 1972.
3
(CUNY) does not guarantee public con-
trol. While CUNY pays Mt. Sinai 300,000 $
in salaries to professors each year and
has agreed to pay for Mt. Sinai's new
basic science building, Mt. Sinai is still
run by a private, self- perpetuating board
that responds to public need as it pleases.
But public control and accountability is
an elusive concept. It does not mean just
financed state -
medical schools, like Down-
state, which reflect the prevailing prior-
ities within all medical schools. Rather,
it means completely new priorities in cur-
riculum, research, and health care de-
livery. For instance, will New York City's
next medical school place a priority on
training community practitioners or will
it continue the traditional emphasis on
producing highly trained -
specialists and
researchers? Will it emphasize research
into the particular health problems of
urban areas, such as lead poisoning, pol-
lution, and health care delivery to ghet-
tos? Will it be a crucible for developing
team practice, different relationships be-
tween professionals and their co workers -
,
pre paid -
group practice, etc.?
With which university will it affiliate?
For accreditation, all new medical schools
must be affiliated with a university. The
choice of which university and what type
of affiliation is critical. If a new medical
school affiliates with a private university,
then it will adopt that school's policy with
regard to admissions and priorities. But
if a new medical school affiliates with the
City University of New York (CUNY),
then it is possible that CUNY's principles
of free tuition and open enrollment will be
applied to medical students. This would
make such a new medical school the only
medical school in the country with open
access for students.
But mere affiliation is not a sufficient
measure of a new medical school's inten-
tions, as the Mt. Sinai CUNY -
relationship
has shown. Mt. Sinai's tuition is $ 2,400
and its enrollment of blacks has never
exceeded 4 percent. Needless to say, Mt.
Sinai's teaching and research priorities
appear to be as little affected by the
CUNY affiliation as their admissions and
tuition policies.
Will it deal with the crisis in New York
City's municipal hospital system? Any
new medical school must define its rela-
tionship to the City's 18 municipal hos-
pitals. Will it relate to only one municipal
Year
1900
1906
1920
1922
1932
1940
1949
1955
1960
1965
1970
U.S. Medical School Tally
Number of
Schools
Number of
Students
Number of
Graduates
160
162
25,171
'
25,204
5,214
5,364
85
13,798
3,047
81
15,635
2,529
76
,
77
22,135
21,379
4,936
5,275
8708
23,670
5,094
883
28,748
6,845
8150
30,084
7,081
8888
32,835
7,574
103 *
40,487
8,974
* excludes 12 schools in development
4
hospital, or will it attempt to deal with
some of the major systemic problems of
the entire municipal hospital system?
One major dilemma for the New York
City municipal hospitals is attracting top-
quality full time - professionals while keep-
ing them accountable to the public. Up to
the early 1960's, the city hospitals had diffi-
culty attracting full time - professional staff.
Salaries could not compete with private
institutions; the prestige of full time - work
ical schools extracted more and more of
their " teaching material " from city hos-
pitals, the municipal system sank deeper
and deeper into second class status.
In the early 1970's, after the advent of
the Health and Hospitals Corporation-
primarily a managerial reform - plans for
closing, selling or leasing up to eight of
the 18 municipal hospitals were discov-
ered. While the private hospital system
continues to expand, the city system was
Decline and Rise of American Medical Schools
150-
125
100-
75-
50-
\
Flexner
Report
25
1900
1910
1920
1930
1940
=:
1950
Health Professions
Education Assist-
ance Act
1960
1970
in the city system was low; and the
working conditions were usually inferior
to those in comparable private hospitals.
Without top quality full time -
staff, interns
and residents flocked to the greener pas-
tures of the private sector.
Then came the Affiliation Program.
Each city hospital was linked to a private
medical school or voluntary hospital. Af-
filiations seemed to solve many of these
problems: they allowed the offering of
competitive salaries and provided the
prestige of a medical school or large med-
ical center affiliation. But the cost of affili-
ations was great. Not only in fiscal terms
(millions of dollars was spent for the pri-
vate affiliate rather than the city hos-
pital), but also in terms of accountability.
Since the full time - professional staff of
the city hospital was employed by the
private affiliate, the professional staff was
accountable to the private institution
rather than the city. This resulted in lop-
sided teaching and research emphases
within city hospitals, rather than the de-
velopment of basic patient care programs,
such as satellite out patient -
clinics, family
practice training programs, etc. As med-
to shrink. When city hospitals (many of
them newly built in the last two decades)
are sold or " given away, " the most likely
recipients will be the private medical cen-
ters that have employed their professional
staffs over the past ten years.
A new medical school can provide the
basis for restructuring the entire munici-
pal hospital system by providing a pub-
licly accountable source of full time -
staff,
research and teaching priorities directed
at urban health problems and an empha-
sis on new forms of health care delivery.
Will it be " third world oriented "? New
York City has more third world (Black and
Puerto Rican) people than any other ma-
jor city in the country. Any new medical
school for New York City should make
special provisions to guarantee increased
admissions for Black and Puerto Rican
students, such that a majority of the stu-
dents are third world. In addition, the
faculty of this new medical school should
reflect this fact in its composition and
priorities.
Using these questions as anchor - points,
let us next look at each of the four med-
ical school proposals in detail.
510
Queens Medical
School Proposal
In a city of seven medical schools, the
Borough of Queens has none. Its leaders
feel deprived. After all, they save, Brook-
lyn has Downstate, the Bronx has Ein-
stein, and Manhattan is overrun with
medical schools. Playing second fiddle to
Manhattan is one thing, but Brooklyn and
the Bronx too?
It's more than borough chauvinism that
has brought together Queens politicians,
urban renewal entrepreneurs, the borough
medical establishment and organizing veterans
groups. It's been the careful organizing
of the County Medical Society and the
political and economic promise of a new
medical school for the borough.
Four years ago, the Ad Hoc Committee
of the Queens County Medical Society,
concerned with bringing a new medical
school to Queens, decided to seek sup-
port outside the medical society. Since
County Medical Society committees can-
not have non doctor -
members, the ad hoc
committee was forced to establish a new
group: the Queens Medical and Health
Program. Subsequently, the Presidents of
York College and St. John's University,
borough politicians, and representatives
from nursing, dentistry and veterans
groups were recruited to the committee.
The Queens Medical and Health Program
gradually transformed itself into the offi-
cial arm of the Regional Medical Pro-
gram (RMP) in Queens, while maintain-
ing its original goal - a new medical
school for Queens. The group has built a
' powerful lobby around the notion of a
medical school based on the existing hos-
pital facilities in the borough and affili-
ated to one of its universities. Its major
opposition seems to come from small hos-
pitals that fear the loss of autonomy un-
der a new medical school.
Financial Transfusion
One of the major benefits of a new med-
ical school for the borough is economic.
In one of the several reports produced
by the Queens Medical and Health Pro-
gram, this is stated explicitly: " In terms
of economic assets, any community with
a medical school is fortunate... a uni-
versity medical center can have an an-
nual operating budget of $ 25 million, and
more. Employees can number from 6,000
to 10,000 and students in various cate-
gories can easily exceed 2,000. A medical
center that has earned a reputation for
leadership in medical education is a mag-
net for scientists... and patients. All
these visitors can make a substantial con-
tribution to a community's'economic
health " ".
6
Besides the direct transfusion of dollars
and jobs, a new medical school has in-
direct fallout: it can expedite urban re-
newal plans. The South Jamaica Redevel-
opment Corporation has seen this poten-
tial, and is presently lobbying to have the
new school located in Central Queens in
the middle of Jamaica's black ghetto.
Several arguments have been advanced
to support this plan. First, there are two
universities in Jamaica, CUNY's York Col-
lege and St. John's University (a private,
Catholic school), either of which could
provide the necessary academic affilia-
tion for the new medical school. Recently
created York College has available land,
a construction budget approved by Gov-
ernor Rockefeller and a College President,
Milton Bassin, who would welcome a med-
ical school which might catapult his col-
lege's prestige beyond the eight other
senior colleges in CUNY's system. Second,
Queens Hospital Center, the borough's
largest hospital, is also located in Jamaica.
It offers a 1,155 - bed municipal hospital
facility, which would be an excellent
teaching base for a new medical school,
not to mention its $ 15.2 million affiliation
contract which would prime the new
school's money pump.
Of course, the bulk of the Queens pri-
vate medical establishment, including the
Queens County Medical Society favor a
new school. After trudging off to Cornell
or Mt. Sinai in Manhattan for years, just
to maintain a teaching hospital connec-
" We have all the necessary
elements working on the
City, State and Federal
levels to make the long
sought - after dream of a
medical school and VA
hospital for Queens a
reality in 1973. After all,
why should a borough of two
million residents, larger
than 19 states, have neither
a medical school nor a VA
hospital? "
_ Donald Manes,
Queens Borough President
tion, many Queens doctors look to the
new medical school as a necessary and
more convenient link to competence and
prestige. The most energetic of these doc-
tors have been instrumental in forming
the Queens Medical and Health Program,
one of the primary groups lobbying for a
new medical school in the borough. There
is some disagreement among the doctors.
Some of those affiliated with Long Island
Jewish Hospital, the empire builder -
of
Long Island, would like to see the new
school based at their hospital rather than
in Jamaica. Most doctors, however, ap-
pear to favor the more centrally - located
Jamaica site.
Veterans March
Harlem Medical
School Proposal
In April, 1972 the New York Post an-
nounced that Knickerbocker Hospital, the
City College of New York (CCNY) and
Montefiore Hospital plan to open a new
medical school in New York City, called
the Harlem Medical School. Though the
story was premature, the plans have been
long in the making. It is this long history.
of careful preparation, designed to give
Blacks a more significant role in at least
one medical institution, that makes the
Harlem Medical School a major con-
tender in the race to become New York's
newest medical school.
Even veterans groups are mobilizing
Harlem Doctors
for a new medical school. For years,
leaders of the borough's 325,000 veterans
have tried unsuccessfully to get a VA hos-
pital for Queens, so the borough's vets
will not have to travel to Manhattan,
Brooklyn and the Bronx for their care.
One major stumbling block is the Vet-
erans'Administration guideline which
requires that all new VA Hospitals be
built within five miles of a medical school.
Black doctors have historically been ex-
cluded from most hospitals. Often, they
were denied admitting privileges and
forced into second - rate proprietary hos-
pitals to perform surgery. This held true
even in Harlem, the capital of Black
America, where for years there was not
one major voluntary hospital to which
Black physicians could admit their pa-
tients.
The new Queens Medical School is the
As a result, Harlem's Black doctors had
linchpin in the vets plan for a new hos-
to depend on public municipal hospitals:
pital. But the vets may also be crucial to
Metropolitan, in east Harlem; Harlem Hos-
the new school plans. Presently, there is
pital, in central Harlem; and Sydenham
legislation before Congress that would
Hospital in west Harlem. During the'50's,
authorize $ 15 million for the construction
the old and decrepit 207 bed - Sydenham
of five new medical schools around VA
Hospital was, in effect, turned over to
hospitals.
Black physicians, as an institution where
The politicians aren't trailing too far be-
they were permitted to control staffing
hind their constituency. In February, 1972
and hence admitting privileges. But in the
a bill was introduced in Albany to enable
' 60s, Black doctors were denied the grand
the State Dormitory Authority to allocate
prize. When the brand - new Harlem Hos-
funds specifically for a medical school at
pital was opened, it was affiliated to Co-
Queens Hospital Center. The bill passed
lumbia College of Physicians and Sur-
the State legislature, but was vetoed by
geons. Columbia appoints the staff of the
Governor Rockefeller for what borough
hospital, and therefore Columbia controls
leaders call a technicality, the failure to
admitting privileges. For this, its garners
submit a master plan to the Board of
$ 20 million per year from the city. Today,
Regents, a requirement of the State Edu-
community - based Black physicians have
cation Law.
less to say about what happens at Harlem
In June, within a week after the Rocke-
Hospital than they did ten years ago,
feller veto, Queens Borough President
before the affiliation contracts.
Donald Manes announced that the Bor-
ough Improvement Board, which he
chairs, has allocated 35,000 $
to draw up
Knickerbocker - The First Step to a
Medical School
plans for a Queens Medical School. Pres-
In the early'60s, when Knickerbocker
ently, a Borough Medical School Plan-
Hospital, a 228 bed - voluntary hospital lo-
ning Committee is preparing a plan to
cated in west Harlem, was threatened
submit to the Board of Regents in time for
with extinction, several Black physicians
the 1973 legislative session, when the bill
is certain to be resubmitted.
under the leadership of Dr. Arthur Logan
" seized the time. " They convinced the
The Queens proposal has substantial
roots within the Queens medical, eco-
hospital to rescind its apartheid policy of
excluding Black physicians from attend-
nomic and political establishment. Whe-
ing and staff positions. They had a vision
ther this is sufficient to bring about a new
-a private, voluntary medical center with
medical school in the borough is yet to
be seen.
Blacks in control - the first step toward a
Harlem Medical School.
7
But it's a long way from a hospital on
the verge of collapse to the establishment
of a Harlem Medical School. Knicker-
bocker was dying because of its apartheid
policies, which dated back to the time
when the Upper West Side was a fashion-
able community, and when J.P. Morgan,
Andrew Carnegie, Ogden Mills and John
Markle served on Knickerbocker's Board.
In the meantime, the neighborhood
around the hospital became Black and
Puerto Rican. While the census of white
patients in hospital dropped, white doc-
tors still held admitting privileges. In-
creasingly, the hospital had to rely on
emergency room admissions to fill its
beds. Though the hospital brags that
" among the 78 voluntary hospitals in New
York City, Knickerbocker has the largest
ambulance district, " everyone knows that
without these patients, the hospital would
fold.
Then came the Medicaid cut backs -.
First, patients previously eligible for
Medicaid were taken off the rolls and
forced to use city hospitals. Then, the
state froze reimbursement rates to the
hospitals. Marginal hospitals, like Knick-
erbocker, that depended for approxi-
mately 80 percent of their income on
Medicaid, were caught in a financial
squeeze.
In spite of the adverse conditions, sev-
eral more Black physicians were attracted
to the Knickerbocker staff, and in 1969
plans for the new hospital were released
to the public. Proposed were the follow-
ing: a 500 bed - teaching hospital, with an
additional 200-300 bed extended care
unit and a mental health unit of 50 beds;
a medical office building adjacent to the
hospital's clinics (to provide Black pri-
vate practitioners with their own modern
offices); and " an industrial complex of
shared facilities such as a laundry, food
service, pharmaceutical and medical sup-
plies, maintenance services, housekeep-
ing and general stores ", designed to sup-
port the medical center.
Two barriers could have blocked the
expansion plans: the Health and Hos-
pitals Planning Council, whose approval
is required for any hospital construction,
and the lack of construction funds.
In 1971, the Health and Hospitals Plan-
ning Council not only approved Knick-
erbocker's plans, but they also designated
it as first priority for State funds for the
replacement of obsolete voluntary hos-
pital beds in New York City. Shortly
thereafter, the state notified Knicker-
bocker that $ 35 million had been allocated
for construction of the new hospital. Dr.
Arthur Logan, one of the principle archi-
tects of the Knickerbocker plan, had done
his homework well. No doubt his ties to
800
" It's the wrong borough for
us. If it weren't, I think
we would really be flying...
We are the right institution
but clearly in the wrong
place. "
- Martin Cherkasky,
Director of Montefiore Hospital
both the Kennedys and the Rockefellers
stood him in good stead.
The Second Step to a
Medical School
Knickerbocker's 1969 planning report
states that the new teaching hospital will
be " affiliated with an undergraduate med-
ical school, a graduate teaching and re-
search center and a school of nursing. "
Though Dr. Logan considered Columbia
and Mt. Sinai, he clearly preferred greater
independence than these established cen-
ters would provide.
When Dr. Robert Marshak was ap-
pointed President of the City College of
New York (CCNY), the oldest and largest
senior college in the City University of
New York (CUNY), Dr. Logan saw his
opportunity. CCNY is located just across
the street from Knickerbocker. In fact, its
South Campus, which is closest to Knick-
erbocker, has space for a new health
sciences building. Dr. Marshak is inter-
ested in building an " urban - grant " uni-
versity, that would receive federal sup-
port to serve crisis ridden -
metropolitan
communities. Health training, including
a medical school, is one of the basic com-
ponents of this model.
As Dr. Logan sees it, CUNY would pro-
vide the first two years of basic science
medical school training, while Knicker-
bocker would be the site of the last two
years of clinical training. This vision is
shared by Dr. Marshak who stated that
he saw " a four year school... in associ-
ation with a completely new Knicker-
bocker Hospital " as the ultimate plan.
Montefiore - The Third Step to a
Medical School
The missing link, however, is Knicker-
bocker's present lack of clinical faculty.
The task was to find some established
repository of clinical faculty that would
assure accreditation for the new medical
school.
Montefiore Medical Center, across the
Harlem River in the North Bronx,
seemed to fit the bill. It is stocked well -
with excellent clinical faculty and its posi-
tion within the Albert Einstein School of
Medicine has been uncertain. Tradition-
ally, Montefiore has been seen as the
" west campus " of Einstein. However, it
has also been regarded as second - class to
the " east campus ". Montefiore has always
wanted at least equal status in policy-
making and teaching at Einstein. But it
hasn't gotten it. Thus, rumors abound that
Montefiore will bolt from Einstein and
form its own medical school.
Montefiore seemed ripe, both politically
and technically, to be the missing link in
the Harlem Medical School. But here the
plan is stalemated. According to Dr.
Logan, after some initial nibbles Monte-
fiore has postponed a decision until Oc-
tober. Some observers speculate that Dr.
Martin Cherkasky, executive director of
Montefiore, is using the threat of Monte-
fiore's involvement in a new medical
school to gain leverage within Albert Ein-
stein. Other observers point out that
Montefiore, with the opening of the new
North Central Bronx Hospital (a city-
built 400 bed - hospital connected by tunnels
to Montefiore and dependent on it for
radiology, surgery, etc.), will become the
regional medical center in the Bronx. In
this position, they say, Montefiore's des-
tiny clearly lies within the Bronx and Ein-
stein, rather than in Harlem.
Back at Knickerbocker, things are just
|
barely holding together. The hospital is
constantly on the verge of financial col-
lapse. The threat of more Medicaid cut-
backs or the loss of accreditation under-
mines any sense of stability. " The prob-
lem now, " " says Dr. Logan, " is whether
Knickerbocker can survive the next three
years until construction gets under way.
It is rumored that Dr. Marshak and
Logan might receive a planning grant of
250,000 $
from the Johnson Foundation to
investigate the feasibility of a new med-
ical school at CCNY. The details of the
grant are still sketchy. But it suggests,
together with the rebirth of Knickerbocker
Hospital, that plans for a Harlem Medical
School are indeed serious.
Under the Negotiating Table
While Leon Davis, President of Local
1199 of the Drug and Hospital Workers
Union, is claiming complete victory in the
settlement of union disputes with the New
York City Health and Hospitals Corpora-
tion, Local 1199 members are becoming
confused about who won what and if
they won anything at all.
The dispute has a complicated history
which revolves around the affiliation of
private medical centers with public mu-
nicipal hospitals. The 4,000 affiliate - em-
ployees whose workplaces are municipal
hospitals belong to Local 1199, while pub-
lic employees in the same hospitals be-
long to the larger District Council 37 of
the State, County and Municipal Em-
ployees Union. Several years ago, when
the Health and Hospitals Corporation was
created to administer the 18 municipal
hospitals, DC 37's support for the idea
was gained by the City's promise to trans-
fer the 1199 workers to DC 37 and thereby
end dual unionism in the municipal hos-
pitals. In keeping with this agreement,
1,900 clerical workers belonging to Local
1199 were sent notices this summer that
they would be transferred to the City pay-
roll and to District Council 37 represen-
tation.
For several weeks up until the July 5th
settlement, the newspapers were filled
with strike threats, charges of union " raid-
ing ", and statements and counter - state-
ments emanating from all parties. Atten-
tion was focused on the possibility that
those better - paid Local 1199 workers
would be frozen at their present salaries
until the lesser - paid DC 37 workers caught
up to them.
Now that the dust is starting to settle, a
lot of unanswered questions are starting
to be raised. While the 1,900 clerical
workers are being transferred to the City
payroll, it is not known whether they have
lost future wage boosts. Scuttlebutt around
the Local 1199 office says that the clerical
workers were sold down the river - the
rationalization for the sell - out being that
" they weren't really hospital workers ".
As for the " real hospital workers ", the
2,100 technicians and others who have
yet to be transferred to the City, " Well,
they're not telling us what's going to
happen. "
While up to 4,000 individual workers
may be in trouble, it appears that the
union itself may come out even. Accord-
ing to higherups Local 1199 will get to rep-
resent all the workers at the forthcoming
North Central Bronx Hospital (a municipal
hospital which is being built at the behest
of and next door to Montefiore), a private
medical center in the Bronx.
9
Community Medical
School Proposal
What could bring together such polit-
ically disparate groups as Einstein faculty
and students, labor representatives from
1199, insurgents from the Lincoln Hospital
Collective, other Lincoln Hospital full time -
staff, and a Vice President of the Health
and Hospitals Corporation? Ordinarily,
nothing. But, in Spring, 1972 these groups
and individuals sat down together to map
out plans for a Community Medical
School in the South Bronx.
The impetus for the Community Med-
ical School came from a Provisional Com-
mittee consisting of a small group of Black
and white Einstein faculty members and
third world students who enlisted support
of the other groups. They felt an entirely
new kind of medical school was neces-
sary to correct the faults in the present
system, which they listed as:
OE Lagging enrollment of third world
students. For instance, at Einstein the per-
centage of Blacks and Puerto Ricans in
the first year class has decreased from
12.5 percent in 1969 to 7 percent in 1971.
M@ Rigid hierarchy that prevents hos-
pital workers, many of them Black and
Puerto Rican, from becoming trained as
MDs, by insisting on full time -
student sta-
tus in medical school and by denying
credit for any previous related health
experience.
MH Declining number of primary prac-
ticing physicians in ghetto areas, from
delivery model proposed in the Carnegie
Commission Report (see November, 1971
BULLETIN), but would go beyond it. For
instance, students would be drawn from
the community on an open admissions -
basis and would be encouraged to remain
in the community after completing their
training. They would learn and work at
community facilities throughout their en-
tire period of training.
To get the process rolling, the Pro-
visional Committee mandated Dr. Cyril
Moore, a Black faculty member at Ein-
stein who chaired the Committee, to
submit a letter of intent to the National
Institutes of Health for funds to plan such
a Community Medical School. The letter,
dated June 23, 1972, spoke in very general
terms of the need " for a new type of com-
munity - based medical school " and men-
tioned the new Lincoln Hospital as a pos-
sible site. But the money that was avail-
able from NIH was for starting Area
Health Education Centers for paraprofes-
sional training rather than for starting
new medical schools.
Ironically, another letter of intent was
sent to the same office of NIH on the same
day from Dr. Ernst R. Jaffe, acting Dean of
Einstein. Jaffe's letter, in contrast to
Moore's, specified Lincoln as one of three
proposed sites for Area Health Education
Centers. Einstein was " invited " by NIH to
submit a proposal for this year; the Com-
munity Medical School group was not.
It is almost certain that Einstein will re-
ceive funds.
However, the reality is that the Provi-
Medical schools, trying to maintain a traditional model,
find it difficult to accept and work with students from poor
communities; they find their programs for'minority group '
students emerge as a burden justified by'social duty. '
-Cyril Moore, Ph.D. Letter of Intent to N.I.H.
4,500 in 1959 to 2,100 in April, 1972. Mean-
while, the total number of physicians in
New York City has risen from 16,700 to
23,500 during the same period.
As one solution to these problems, the
Provisional Committee proposed a hos-
pital based - medical school, providing
both basic science education as well as a
" deep ongoing relationship to the day - to-
day life experience of the community be-
ing served, " a Community Medical
School. They saw this new type of med-
ical school differing from the traditional
Flexner model which is research oriented.
It would be similar to the new health care
10
sional Committee is hindered by much
more than their lack of planning money.
Besides being unfamiliar with the steps
necessary to set up a new medical school,
those who form this loose coalition have
very different goals.
The Black students and faculty from
Einstein and some of the full time -
staff
from Lincoln are interested mainly in
opening a medical school for third world
students. This was evident from the be-
ginning, with their focus on the racism,
both cultural and academic, that they face
in white dominated -
, traditional schools.
The new Drew Medical School in Watts
most closely approximates their model.
It is a Black controlled school with a com-
munity emphasis, but a fairly traditional
organization.
The union members on the Committee
have a similar goal, but with different
emphases. They too would like the new
medical school to be traditional in terms
of credentials, accreditation and legit-
imacy, but they envision a slightly differ-
ent student body. They would like the
medical school to admit union affiliated -
hospital workers, regardless of ethnic
background. They would insist that the
curriculum of the new school credit hos-
pital workers for their experience.
Through their training fund, the union has
been able to provide some measure of
mobility for a few of their workers at the
lower levels of the medical hierarchy;
getting union members admitted to a med-
ical school would be a crowning achieve-
ment.
The various insurgent groups at Lincoln
Hospital itself have very different views
of what a community medical school
would be and how it would function. They
are primarily interested in changing the
way health care is delivered. Therefore,
some are not as interested in credential-
ism as they are in providing medical
training for hospital workers and other
community people. They want to break
down the rigid categories of the medical
hierarchy rather than merely opening
them up to poor and third world people.
Although initially the Provisional Com-
mittee was adamant about not having
any ties, formal or informal, to Einstein,
Einstein's anticipated federal grant has
changed matters drastically. Now, some
members of the Committee are a good
deal less committed to their initial posi-
tion of aloofness. They have begun to
realize that planning a new medical
school requires more than an idealistic
philosophy and a curriculum committee.
It is a political process.
Recently, a meeting was held between
Community Medical School advocates
and Assistant Dean William Glasser, also
acting chairman of the Community Health
Department at Einstein, Glasser agreed to
include a request for some planning
money for the Community Medical School
group in Einstein's proposal for federal
funds. According to Dr. Cyril Moore, Pro-
visional Committee chairman, the Com-
mittee would accept money " only to pro-
vide investigatory help, and for an office
and a secretary at Lincoln. We don't want
Einstein too involved. " The future of the
Community Medical School is completely
uncertain but its early association with
Einstein does not bode well for its inde-
pendence.
Proposal for a
Medical School of the
City University
of New York
What is it the would accomplish the fol-
lowing goals:
OE Development of a full time - high
quality physician staff for all of New
York City's municipal hospitals.
OE A large increase in medical school
graduates (perhaps as many as 300 per
year).
OE Financial and educational accessibil-
ity to medical school for Black, Puerto
Rican and poor white populations.
OE An increase in the number of phy-
sicians practicing in all New York City's
communities; especially among the poor.
M Part time - study in medical educa-
tion, so that health workers may advance,
even to become MDs?
For Dr. William Stahl, Chief of Surgery
at Bellevue Hospital, there is only one
answer: a Medical School of the City
University of New York (MSCUNY).
Dr. Stahl's proposal is as much a plan
for the total reconstruction of the New
York City hospital system as it is a plan
for just another medical school. Although
forces powerful enough to deliver such a
plan are not lined up yet, the general out-
line of a Medical School of the City Uni-
versity of New York is a challenging and
imaginative proposal that requires seri-
ous consideration.
What is MSCUNY?
A Medical School of the City University
of New York would probably be the na-
tion's largest medical school. Its pre clin- -
ical faculty, which would teach the basic
science courses of the first two years of
the standard medical school curriculum,
would be drawn from existing faculty
within the City University of New York's
nine senior colleges and selected com-
munity colleges. They would continue to
teach in their respective institutions. Al-
ready, a host of pre clinical -
courses are
taught in the City University from ana-
tomy, biochemistry and physiology to his-
tology and microbiology. These courses
might require some reorganization and co-
ordination, but the basic rubric for the
first two years of medical school is pres-
ent at this time.
The clinical faculty would consist of
the full time staff of all 18 municipal hos-
pitals. They would teach much of the
clinically - related science, such as pharma-
cology, pathology and physical diagnosis.
In addition, they would offer the basic
11
clinical clerkships in pediatrics, med-
icine, surgery, obstetrics and gynecology
through all 18 hospitals, with 15,187 beds.
presently within the city hospital system.
The magic of this proposal is that a
large number of the elements necessary
for its success already exist. Without the
creation of massive new buildings, the
human resources in terms of faculty are
basically present. The precedent for free
tuition to all New York City residents has
been established by the City University
of New York at the undergraduate level.
Access to the medical school for Black,
Puerto Rican and poor white students is
enhanced by the City University's policy
of open enrollment. And the probability
that these students will stay in the com-
munities which they grew up in is in-
creased by training in a local community
municipal hospital, which has the prestige
of a medical school affiliation.
A Solution to the City Hospital Crisis
What is most imaginative about the
MSCUNY proposal, however, is its poten-
tial as a solution to the city hospital crisis
in New York. For decades the city hos-
pitals have had difficulty attracting top
quality, full time - professional staff and
well trained -
interns and residents. The
Affiliation Program which linked indi-
vidual city hospitals to private medical
schools and medical centers only par-
tially succeeded in overcoming this prob-
lem. Today, some see the ultimate solu-
tion as selling the city hospitals to their
private affiliates. By integrating private
with public patients, private physicians
would be attracted back to the city hos-
pitals, they claim. But more private doc-
tors will not solve the staffing dilemma.
What is needed is full time -
professional
staff accountable to the public. Affilia-
tions increased the full time -
staff, but de-
creased their accountability to the public,
by placing them in the employ of private
medical schools and medical centers.
The Medical School of the City Uni-
versity of New York provides one
potential solution to this dilemma. As
a medical school, MSCUNY will be able
to provide the prestige of an academic
university - based setting, thereby attract-
ing top quality -
professionals to the sys-
tem. As a public medical school, it will
regain control of hiring and firing its pro-
fessional staff and thereby be able to de-
mand some degree of public accountabil-
ity from its staff. Of course, competitive
salaries will need to be continued, but
the affiliation program and the City Uni-
versity of New York both have excellent
records in this regard. The novelty of such
a " decentralized " medical school with its
12
potential for curricular innovation both in
the classroom and in the community will,
as Dr. Stahl suggests, " draw capable and
enthusiastic staff from the entire country. "
MSCUNY and CUNY
In addition to being a solution to the
City Hospital crisis, MSCUNY offers some
specific advantages to the CUNY system.
It provides the faculty and perhaps the
financing for expanding CUNY's training
program in nursing, medical technol-
ogy and para professional -
occupations,
such as physicians assistants training.
Within the framework of a health science
university, health workers presently serv-
ing within the municipal hospital system
would be able to go to school part time -
to pick up the necessary courses and elec-
tives to complete pre clinical -
medical
school training. With some credit offered
for on job - the - experience in their respect-
ive hospitals, these workers would be
able to advance to become doctors with-
out having to attend medical school full
time.
MSCUNY has one additional advan-
tage. All the other medical school pro-
posals presently being considered, are
designed to be affiliated with only one
part of the CUNY system. For example,
the Harlem Medical School would be af-
filiated with City College, while the
Queens School would be affiliated with
York College. A medical school is a big
feather in a college president's cap. No
doubt, any president will make demands
that might stall a project excluding his
school. MSCUNY obviates these problems
by decentralizing its medical school to
each of the senior colleges within the
CUNY system. It's like giving a medical
school to each of the college presidents.
Problems, Problems
But MSCUNY is faced with a myriad of
problems. At present, it seems to be the
least " politically entrenched " proposal.
In essence, it appears to be a proposal
without a constituency. Dr. Stahl has a
two pronged -
strategy: first, to convince
CUNY of the viability of the proposal.
Here his tactic is to approach a few highly-
visible and influential people to support
the program, such as Robert Wagner,
Chairman of the Citizens'Commission on
the future of CUNY. The immediate goal
would be to have the President of CUNY
appoint a dean for the new medical
school, so that concrete plans may be
undertaken soon.
Second, Dr. Stahl must win over the
Health and Hospitals Corporation. So far,
he has not approached the board, but has
concentrated on the Lindsay appointees,
like Gordon Chase. But all these machina-
tions are taking place behind closed.
doors.
In addition, the free tuition and open
enrollment policies at CUNY will not
automatically apply to a medical school.
In fact, they are presently limited to the
undergraduate schools, where many cri-
tics claim that open enrollment is a farce
Lstudents are admitted without CUNY
offering appropriate support, and many
flunk out after one semester. On the grad-
uate level, free tuition and open enroll-
ment have never existed. MSCUNY will
have to fight to win these crucial goals.
Finally, the MSCUNY has to deal with
the problem of money for running a med-
ical school. Dr. Stahl points out that the
average medical school budget is $ 20-25
million per year. The city already pays
medical schools and private medical cen-
ters $ 160 million to provide professional
staff for the municipal hospitals. If this
staff were appointed and on the payroll
of MSCUNY, then this $ 160 million would
go to MSCUNY. If approximately 10 per-
cent of each affiliation contract goes for
overhead rather than direct services, a
transfer of the affiliations to MSCUNY
should " free - up " approximately 16 $ mil-
lion for MSCUNY administrative and over-
head expenses.
Realities
It is clear that the MSCUNY proposal
pushes right up against the major estab-
lishment forces in New York City's private
medical system. MSCUNY implies the
phasing out of the present affiliations:
Einstein out of Jacobi and Lincoln; Colum-
bia out of Harlem; New York Medical
College out of Metropolitan; NYU out of
Bellevue; Downstate out of Kings County;
Long Island Jewish out of Queens Medical
Center; etc. A school like NYU would be
hard pressed for a place to teach medical
students if it didn't have Bellevue. Without
Jacobi, Einstein would probably go bank-
rupt. Downstate could never staff its State
University Hospital with interns and resi-
dents without rotating them from Kings
County. It seems patently obvious that
any proposal which forbodes such sweep-
ing changes must have more than
" behind - closed - doors " support. MSCUNY
has the potential for widespread popular
support, but this must be developed.
Unfortunately, this is not Dr. Stahl's
present approach. Whether he will change
in the future is not certain. If past experi-
ence is any indication, the prospects are
gloomy. Dr. Stahl was closely associated
with NYU's former dean, Dr. Lewis
Thomas. Undoubtedly, he was involved
with Dr. Thomas in the " closed- behind -
doors " discussions and politicking that re-
sulted in the present Health and Hospitals
Corporation failure (see December, 1971
BULLETIN). MSCUNY needs a broader
constituency than Dr. Stahl appears will-
ing to bring to it.
Four Questions
In conclusion, let us turn back to the
four questions that each proposal was to
answer:
@ Will it be public or private? Of
the four proposals presented, only the
MSCUNY one calls forthrightly for public
control and accountability. The Commu-
nity Medical School implies some form
of public or community control, while
both the Harlem and Queens Medical
Schools look like they will be run by pri-
vate boards.
Medical School Boxscore
Each Characteristics Proposal of
Proposals for New Medical Schools in New York City
Queens
Harlem
Community MS
Public or Private
Ownership and Control
Probably
|
Private
Probably
Private
Probably
Public
University Relationship
|
York College
of CUNY
CCNY of
CUNY
Considering
CUNY
MSCUNY
Definitely
Public
All 9 senior
colleges of
CUNY
Municipal Hospital
Relationship
Queens Medical
Center
None rather
to private
voluntaryL
Knickerbocker
Probably
Lincoln
Eventually all
18 municipal
hospitals
Third World Orientation
|
None
Political Constituency
Queens politicians,
medical establish-
ment, urban renewal
and small business.
veterans
Yes
Yes
Black community
of the entire
Black and white
faculty and students
city, black phys-
at Einstein;
ians, urban
some Lincoln
renewal and black
|
staff; possibly
businesses
1199
Yes, but not
exclusively
Undeveloped
13
M@ With which university will it affili-
ate? All four proposals seek some rela-
tionship with the City University of New
York (CUNY), but in most cases this is
limited to one of the nine senior colleges.
The only proposal that deals with all of
CUNY is the MSCUNY proposal. Harlem
would relate to CCNY; Queens would re-
late most likely to York College. The Com-
munity Medical School is just beginning
to explore a CUNY relationship.
M@ Will it deal with the crisis in the
New York City municipal hospital sys-
tem? The Harlem Medical School appears
to be completely independent of the mu-
nicipal hospital system, except that the
opening of a new Knickerbocker Hospital
will mean the closing of Sydenham and
probable transfer of its $ 7 million budget
to the new hospital. The Queens Medical
School and the Community Medical
School apparently are relating only to
one of the 18 municipal hospitals-
Queens Medical Center in the case of the
former; Lincoln Hospital in the case of
the latter. Again, the only proposal that
deals with entire municipal hospital sys-
tem, is the MSCUNY proposal. Thus,
MSCUNY is the only proposal that holds
the promise of dealing with the affiliation
system and the erosion of public account-
ability within the municipal hospitals.
OE Will it be third world oriented?
Though none of the proposals explicitly
states that it will be a Black or Puerto
Rican medical school, the Harlem and
Community Medical Schools imply that
this will be their emphasis. Likewise, the
MSCUNY proposal sees itself as encour-
aging third world admissions. The Queens
proposal makes no pretense in this
direction.
OE Which proposal will most likely be-
come New York's next medical school?
Politically, the Harlem and Queens pro-
posals appear to have evolved through
more sophisticated political processes.
They both have a developed and defined
constituency, in contrast to the amorphous
constituency that relates to the Commu-
nity Medical School and the non existent -
constitutency around the MSCUNY pro-
posal. Conceptually, MSCUNY is miles
ahead of the others. However ideas are
not the same as political power, and po-
litical power is ultimately what makes the
decision. So, the eventual outcome is
quite uncertain. But one thing is certain:
New York City will have a new medical
school soon.
-Oliver Fein, A. Sandra Abramson,
Michael Gordon. Michael Gordon
is currently a medical student at
Univ. of Penna. He was a Health-
PAC student intern this summer.
Public Utility Hospitals?
An impressive battle is underway in
Ann Arbor, Michigan for public control of
the City's major provider of medical care.
St. Joseph's Mercy Hospital, a Catholic
voluntary, is being sued by the Medical
Committee for Human Rights (MCHR) for
attempting to move from Ann Arbor to
Superior Township ten miles away, thus
depriving the City's residents (and par-
ticularly the poor who can't afford to
travel to the new planned site) of needed
medical services. The suit charges that
the State Health Department, the South-
east Michigan Comprehensive Health
Planning Council and six other public
agencies - all apparently powerless to
forestall the move - have failed to insure
comprehensive health services, reason-
able medical fees and rates, and to control
hospital costs. Instead, the plaintiffs main-
tain that the hospital is informally con-
trolled by Blue Cross and Blue Shield,
both private corporations.
To bring the hospital under public con-
trol, the MCHR suit requests that the court
establish precedent by declaring St.
Joseph's Mercy Hospital a public utility,
subject to regulation by the State Public
Service Commission. MCHR would then
force public hearings on St. Joe's reloca-
tion plans, its exorbitant rates (second
highest in the state for a hospital of com-
parable size), and its services.
To Show Mercy
The MCHR suit is part of a campaign
to publicize the arcane actions of Ann
Arbor's health institutions and the need
for community control of health services.
The campaign has drawn the support of
an interesting array of local groups such
as: the Welfare Rights Organization. Stu-
dent American Medical Association, Free
People's Clinic, the Human Rights Party,
the Women's Health Collective, United
Health Workers Union, and the Black Eco-
nomic Development League. Several city
councilmen have also endorsed the hear-
ings and support the suit.
Knowing the capriciousness of the
courts, MCHR and other sponsors co -
are
not counting on a favorable decision. Even
if the hospital is declared a utility, they
are not placing their faith in the State to
adequately perform its regulatory func-
tions. Plans are in the offing for various
groups involved to incorporate as an au-
thority themselves to police the quality
of care, control costs, approve expansion
plans, etc. of local health institutions.
14
CRIPPLED
County Medical Society, favored a fee-
for service -
indemnity plan with limited
coverage; a second camp held out for a
state or national system of compulsory
health insurance; while a third took a mid-
dle road - of - the -
position, that prepaid group
practice was the answer.
The Mayor steered toward the middle-
of road - the -; and between 1944 and 1946
HIP
h
legislation was introduced and passed
within the State Legislature to legalize
prepaid group practice. Meanwhile, lib-
eral private " health movers " went to
work. For start - up expenses, David M.
Heyman of the New York Foundation and
Mary Lasker raised $ 855,000 in loans from
the Rockefeller Foundation, the New York
Foundation and the Albert and Mary
Lasker Foundation.
The Health Insurance Plan of Greater
New York (HIP), one of the oldest pre-
paid group practices in the country and
second in size only to the West Coast-
based Kaiser Permanente -
, is on the skids.
By March 1, 1947 twenty - two medical
groups located in various parts of the city
had been organized and the plan opened
for enrollment. From the beginning, how-
ever, HIP had two major deficiencies: its
inability to recruit adequate numbers of
full time - doctors and its lack of owner-
Indeed, HIP's immediate crisis, which
has been building for some years, has
brought it to the brink of bankruptcy.
HIP's problems are of concern not only
to its 750,000 New York subscribers,
nearly half of whom are New York City
municipal employees, but to national
health planners as well. Rapidly evolv-
ing events at HIP are being watched
closely by the Department of Health, Edu-
cation and Welfare, Blue Cross and the
staff of Health Maintenance Organization
booster Paul Ellwood. Undoubtedly Ell-
wood and Blue Cross see HIP's crisis as
an opportunity to convert the Plan to the
single largest HMO in the country with
Blue Cross at its helm. As a result, Blue
Cross, its eyes glued to the national health
insurance horizon, is moving in to pick up
the pieces of the broken HP.
x
Congenital Defects
HIP's current crisis has been a long
time coming but could have been pre-
dicted. In fact, the seeds of the Plan's
present difficulties were planted at its
conception.
In 1943, New York's Mayor, Fiorello
LaGuardia, appointed a committee to de-
vise a prepayment plan to provide com-
prehensive care for city employees and for
employees of private industry. Notably
excluded were the unemployed poor.
Then as now, the gaps in private health
insurance were so great that a single ill-
ness could leave a worker destitute. The
committee rapidly split into three camps:
|
one camp, led by representatives of the
ship of hospitals.
The 22 medical groups (there are now
30 groups) were set up independently,
similar to present - day franchises. The
medical group centers were, by and large,
owned and operated by private partner-
ships of doctors, each of which signed a
contract with central HIP to deliver a
specified set of services to subscribers.
The medical group received a fixed
amount per year for each enrollee (pre-
payment per capita) regardless of the
amount of medical service utilized by the
subscriber. In the contract ending July,
1971 this amounted to an annual fee of
$ 45 to $ 61 per enrollee, depending on the
services offered by the group.
The medical groups grew up as dual
practices for most HIP doctors - part - time
HIP practice and part time -
private prac-
tice, with the latter usually being favored.
Central HIP lent its prestigious name and
recruited patients for the local groups.
Meanwhile, as the local doctors concen-
trated on building their more lucrative
private practices, they increasingly short-
changed their HIP patients. The doctors '
private practices served as insurance
against any attempt by central HIP to
force the medical groups to live up to the
contract. If central HIP demanded higher
quality service, the doctors could always
pack their black bags, take their medical
center out of HIP, and devote themselves
to full time -
private practice.
The leeway shown the doctors may
have been necessary in the beginning of
15
HIP because doctors were understandably
reluctant to pledge a full commitment -
to
an untested new experiment in medical
care delivery. However, this arrangement
institutionalized the power of part time -
doctors and once established it became
very difficult to subsequently reverse.
Eventually, HIP's survival depended upon
increasing the number of full time -
doctors
from whom accountability could be de-
manded. This task, however, still awaits
accomplishment.
HIP's second major deficiency was that
it owned and operated no hospitals. This
completely undercut the economic incen-
tives of a prepaid group practice. By offer-
ing preventive care and other measures,
it has been demonstrated that prepaid
group practice reduces hospitalization for
its members by about one third -. In a pre-
paid group practice like Kaiser, which
owns its own hospitals, the savings from
this reduced hospitalization are returned
either as " profit " for the plan or reduced
premiums for subscribers.
However, HIP only covers doctor's of-
fice visits, outpatient laboratory tests, pre-
ventive check - ups, etc. Each HIP sub-
scriber must have hospitalization insur-
ance as well, and for most this is Blue
Cross. So, in the case of HIP, the money
saved from its subscribers'decreased util-
ization of hospital services was not poured
back into the plan or given to subscribers.
Rather, Blue Cross ended up the winner,
because it had to pay less hospital bills
for each HIP subscriber.
For decades HIP struggled along with
its congenital disabilities. Throughout the
forties and fifties it grew in spite of in-
tense opposition from medical societies
whose paranoid fears equated prepaid
group practice with socialized medicine.
Presently, it consists of 30 medical groups
and approximately 750,000 subscribers.
Consumer Rumblings
By the 1960's, however, HIP's built - in
liabilities began to catch up with it. Sub-
scribers began to complain that medical
service was not up to snuff. HIP users ex-
perienced long waits for appointments
and off cuff - the - impersonal treatment
when they finally got to see a doctor.
Many HIP doctors, two thirds -
of whom
were in private practice, used HIP as a
soft financial cushion to pad their private
practice incomes. Often, in fact, the doc-
tors give preferential treatment to their
private patients, seeing them first at HIP
facilities. Even some of the HIP doctors
recognized HIP's inadequacies. Doctor
Robert Rosengarten, medical director of
the Jamaica HIP group, admits that his
facilities were " inadequate, " " crowded, "
" run down, " and " gave limited services. "
16
" I think that early in this
(H.I.P.'s) development it was
recognized that certain
deficiencies were present in
the plan, but there was no
alternative at that point in the
mid forties -
but to begin
with a less perfect design. "
- James Brindle,
Ex President -, H.I.P.
At first, poor service merely discour-
aged new subscribers from joining HIP.
However, as the problems worsened,
long time -
HIP subscribers began to leave.
According to Ed Gluckman, a consumer
representative on the HIP Board, " HIP's
1972 enrollment, discounting Medicaid pa-
tients, is back to the 1962 level. " But HIP's
Medicaid enrollees cannot so easily be
discounted. In fact, without them, HIP
would have been bankrupt long ago.
Fleecing Medicaid
HIP's first drop in enrollment occurred
early in 1966. Only six months later, HIP
enrolled its first Medicaid subscribers.
Since then Medicaid has provided the
transfusion both in enrollees and dollars
- that kept HIP alive. Indeed, HIP's rela-
tionship to Medicaid has been nothing
short of scandalous. It is estimated that
HIP " profits " over $ 2 million a year on
its Medicaid enrollees, while it looses ap-
proximately $ 1 million on its regular sub-
scribers.
Medicaid is a money - maker for HIP be-
cause Medicaid subscribers, whose annual
premiums are actually higher than those
of regular subscribers, use only one third -
as many services. In 1969, Medicaid sub-
scribers received only 1.3 services per
person, compared with 4.3 services per
person used by regular subscribers. For
some groups, the rates are considerably
worse. The Yorkville Medical Group, for
example, gave only.66 services per Med-
icaid subscriber (under age 65) com-
pared to 4.07 services per non Medicaid -
subscriber.
Lack of utilization of HIP by Medicaid
subscribers is not because they are
healthier. On the contrary, most Medicaid
subscribers probably need more medical
services than the average HIP member.
One explanation for the poor utilization
by Medicaid enrollees is that many of
them don't even know what HIP means.
During 1968-69, HIP conducted a door - to-
door enrollment campaign, during which,
it is alleged, it signed up Medicaid en-
rollees without fully explaining what the
HIP program was all about. Naturally,
many Medicaid enrollees continued to
use their local city hospital for medical
care. But, when the City put a stop to
these enrollment tactics, HIP still noticed
that Medicaid enrollees didn't come for
services. Other explanations were sought.
In some medical groups, the barriers to
increased utilization are clearly formid-
able. For example, the Bedford Williams- -
burg Center was judged undersized by
HIP's own guidelines, prior to Medicaid,
when its enrollment was only 10,000.
Without additional space, it clearly can-
not serve the added Medicaid enrollees,
who boosted enrollment to 27,000. Other
groups maintained their customary 9-5
weekday hours, forcing Medicaid en-
rollees to use emergency wards during the
off hours. Strict adherence to appointment
schedules also warded off the crisis-
oriented Medicaid subscriber. Whatever
the reason, it appears that HIP never in-
tended to serve Medicaid patients. Rather,
HIP used Medicaid merely to stave off
impending financial crisis.
Revolution - Come - Lately
At best, however, Medicaid could only
provide a temporary respite from HIP's
impending doom. Though Medicaid
brought in millions of dollars, much of it
went to satisfy the incessant demands of
the medical groups. What was left over
was sunk into meeting HIP's already-
bloated central office budget. Even after
creaming Medicaid, HIP could barely
meet expenses. There was certainly no
money left over to deal with consumer
dissatisfaction by upgrading medical ser-
vice. So HIP subscribers continued to
drift away.
In 1971, HIP tried to counter subscriber
demoralization by creating Consumer
Councils. Predictably, HIP doctors op-
posed the move; but, after its customary
foot dragging -
, Central HIP acceded to sub-
scribers'demands and initiated Consumer
Councils at each HIP center. By this time,
however, many subscribers had no inter-
est in a " consumer movement " around
HIP. They wanted out, and they voted
with their feet.
Under pressure from dissatisfied con-
sumers, and, more importantly, irate labor
leaders, HIP officials belatedly admitted
in 1971 that " the time had arrived to deal
"
with long standing -
, vexing problems. '
HIP President Brindle proposed a sweep-
ing reorganization, misnamed the " region-
alization plan, " to overcome HIP's two
major deficiencies: its part time - doctors
and its lack of hospitals.
In essence, the plan sought to consoli-
date HIP medical groups by merging
them with those groups which were al-
ready substantially manned by full time -
doctors. To prevent the doctors who shied
away from a full time - group practice
commitment from leaving the Plan,
Brindle sought to remove their major
asset: the medical facilities which they
owned. The demand that the doctors sell
their facilities to central HIP was bound
to raise the ire of the doctors.
Tense negotiations began between Cen-
tral HIP and the local medical groups. Al-
most immediately one affiliate, the Astoria
Medical Group, rejected full time - HIP
practice and bolted HIP. Other HIP groups,
ostensibly at least, agreed to consolidate.
Though half of the regionalization plan
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17
was to be implemented by August 1972,
thus far only two such plans have trans-
pired involving groups on Staten Island
and Queens. While this covers nearly
one quarter -
of HIP's subscribers, conser-
vative doctor groups have hardly given
up their fight to preserve their part time -
relationship to HIP.
Brindle's second objective, the acquisi-
tion of hospitals which " will become the
focal point of full time - medical group
practice " and which will achieve " an inte-
grated system of ambulatory and inpa-
tient care.. " has fared no better. For
the moment, HIP operates only a single
hospital, LaGuardia Hospital in Queens.
This 220 bed - facility serves the new re-
gionalized LaGuardia Medical Group.
The problem with Brindle's scheme is
that the purchase of hospitals and the
higher salaries which must be paid to
full time -
doctors, not to mention other ele-
ments of Brindle's reorganization plan,
such as the expansion of multiphasic
screening and centralized laboratories,
cost money and lots of it. But money is
precisely what HIP doesn't have. In fact,
at its present spending rate, without any
improvement of services, HIP is losing
money on its non Medicaid -
subscribers.
Lowering the Boom
To pull off its reorganization plan, HIP
requested a 36 percent rate increase from
the New York State Insurance Depart-
ment. In May, the Department approved a
29 percent hike, sufficient, according to
sources close to HIP, to insure implemen-
tation of the plan. But, even before the
Insurance Department's ruling, testimony
offered at the rate increase public hear-
ings provided a harbinger of bad tidings.
Speaking for the half of HIP doctor
groups organized in the conservative
Medical Group Council, Dr. Martin Gold
expressed the fear that the new plan
would lead to dire consequences. "...... If
... the doctors can't stand working under
circumstances where they're told they
must come in, actually, about 41 hours a
week...... [the] whole darned plan is go-
ing down the drain. "
The testimony of Harry I. Bronstein, City
Personnel Director, was even more omi-
nous. Bronstein, the City's representative,
had the ultimate power to decide whether
the City would go along with a rate in-
crease for the 300,000 City employees
and their families who comprise nearly
half of HIP's members. His comments left
little doubt about the City's decision. If
the rate increase were granted, he said,
it " may require the City to examine other
possible alternatives for its employees...
at a cost which is fair and equitable to
the taxpayers of the City. "
By mid August -
, Bronstein acted. He re-
jected the Insurance Department's ap-
proved 29 percent rate increase, and de-
clared that the best the City could offer
HIP was 15 percent. And, in so doing,
Bronstein shot down the reorganization
plans in one fell swoop. To make matters
worse, HIP's creditor, the Chase Manhat- -
tan Bank, declared that it was refusing
HIP any further credit. The combination
punch of Bronstein and Manhattan Chase -
did more than throw HIP's reorganization
plan into a tailspin. It knocked President
Brindle right out of the ring. On August
14, Brindle and HIP's Executive Vice Presi-
dent, Martin Cohen, handed in their resig-
nations.
Nobody mourned for Brindle and
Cohen. For years they had been accused
of mismanaging HIP. Allegations of the
misappropriation of money were wide-
spread. Critics blamed HIP's enormous
overhead costs of 14 percent of its total
budget (as compared to 3 percent for
Kaiser) on Brindle's and Cohen's inepti-
tude. Furthermore, Brindle's reorganiza-
tion plan had won little favor with HIP
doctors. But none of this completely ex-
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18
plains why the City suddenly turned on
Brindle, guaranteeing his ouster.
. Undoubtedly, part of the reason for the
City's refusal to pay the full rate increase
was its desire to put the reins on its gal-
loping budget. But it's doubtful that the
center of HIP policy making.
Whether Michelson will be satisfied
with the controlling of HIP is uncertain.
The 60 $ million a year HIP is small fish
and there are much bigger fish in HIP's
troubled sea. This became evident when
" My group, the former Jamaica Group, was, just like the
other groups with representatives here, inadequate,
crowded, had run down facilities; we gave limited services;
we had old equipment, but we were very successful. We
maintained successfully for tweny years the status quo
system, with very little change in the delivery of serviecs.
And we divided sufficient profits at the end of the year to
keep the physician partners on a part time -
basis. True, we
had to underpay our employees, and the contract phy-
sicians, who didn't stay very long. When they asked for a
salary increase we let them go. "
-Dr. Robert Rosengarten,
Medical Director of Jamaica H.I.P.
City would have rejected so decisively
an attempt to modernize New York City's
only major prepaid group practice plan
without significant prodding from other
important political interest groups. Sifting
through the rubble of Brindle's demise the
heavy hand of organized labor can be
seen not far beneath the surface.
Labor's visible figure in HIP affairs is
William Michelson. A devotee of the
" power school of politics, " Michelson was
a key member of the HIP team which
negotiated and accepted the 15 percent
rate increase the City finally granted HIP.
Michelson, President of the United Store
Workers'Union, and Board member of
the Health and Hospitals Corporation
(which operates all of New York City's
municipal hospitals), now heads a five
man committee temporarily running HIP.
Michelson expressed no regrets about
Brindle's resignation. Indeed, he has
openly boasted about his opposition to
Brindle for the past two years. Michel-
son's opponents go a step further and
suggest that he engineered the crisis with
the City to force Brindle's resignation.
Michelson denies being the hatchet man,
but, in any event, the upshot of Brindle's
resignation has been to place him at the
it was revealed that Michelson invited
Blue Cross and Group Health Insurance
(GHI) to make formal proposals to rescue
HIP from its present misery.
The Vultures Descend
According to HIP insiders, GHI's pro-
posal amounted to nothing less than a
total takeover. Blue Cross, on the other
hand, proposed to set up a new corpora-
tion, jointly controlled by itself and HIP,
into which Blue Cross would pour millions
of dollars to purchase HIP's medical
groups'facilities and eventually hospitals.
Blue Cross has sweetened its bid by sug-
gesting that perhaps Blue Cross / HIP
could offer package insurance deals to
industrial firms, like New York Telephone.
Both GHI and Blue Cross have assured
the City that they could pare costs and
provide the current level of HIP services
well within a budget consistent with the
City's approved 15 percent rate increase.
Looking more closely at the interests of
GHI and Blue Cross, it becomes clear that
their real plans have little to do with pre-
serving HIP or its subscribers'medical
services or even ultimately the City's
budget.
19
GHI has been described as a hybrid,
or, less charitably, as a " bastard, " med-
ical insurance company. While it osten-
sibly offers its one and a half million New
York City subscribers prepaid doctor ser-
vices, it does not, like HIP, assure that
health care is comprehensive or is deliv-
ered by medical groups. Most affili- GHI -
ated doctors are in private, solo, for- fee -
service practice. Like HIP, GHI does not
cover hospitalization.
Despite these deficiencies, GHI is at-
tractive for several reasons. For patients
its big selling point is that it offers a wider
choice of doctors than HIP. And for both
its patients, many of whom are low - sal-
aried workers, and several major labor
unions who use the plan for their mem-
bers, GHI has another cardinal virtue: it's
cheaper than most other plans. The rea-
son it's cheaper, however, is that it offers
fewer benefits. Since it reimburses its doc-
tors a mere four dollars for an office visit,
GHI doctors regularly bill patients for the
balance of their fees. Hence patients wind
up having to pay out pocket.
A takeover of HIP would eliminate its
major competitor and would push GHI
closer to the big leagues in the medical
insurance industry. GHI partcipating doc-
tors would be delighted at the prospect
of some 750,000 HIP patients being driven
into their private offices.
Blue Cross'interest in HIP derives from
no less self aggrandizing -
motives. But, be-
fitting the reigning king of the health
insurance world, Blue Cross'vision is
more majestic. Blue Cross sees the acqui-
sition of HIP as a stepping stone to becom-
ing the sole fiscal intermediary for any
future national health insurance plan. Al-
ready the major contender for this role,
Blue Cross is nonetheless saddled with
one major handicap: it has had little ex-
" I guess the city's labor
guys got scared to death
about the city's finances
and thought the money
would come out of their
pockets next year. "
-William Michelson,
H.I.P. Interim Executive Committeeman
2200
perience with Health Maintenance Organ-
izations (HMO's) [see BULLETIN, No-
vember, 1970], a component of every
national health insurance proposal on the
legislative table. However, were it to suc-
ceed in placing HIP in its hip pocket -
, Blue
Cross would overnight have the nation's
second largest prepaid group practice,
thus partially fulfilling Blue Cross Presi-
dent McNerney's boast that, " Our goal is
to have 80 operative HMO's by the end
of 1973.... " For Blue Cross, it would
mean the best of all possible worlds. With
its proposed 50-50 shared ownership of
HIP medical centers and future hospitals,
it would mean that Blue Cross would exer-
cise control, much as HIP doctors now do,
of the entire HIP operation.
Back at HIP
It is already clear that Michelson will
not be the uncontested arbiter of HIP's
fate. Already opposition is building on
the HIP Board of Directors. The 30 member -
self perpetuating -
HIP Board must set some
kind of record for its lack of representa-
tiveness regarding HIP subscribers. It con-
sists of seven labor representatives, six
doctors, two consumer representatives
(only recently added), and the rest a
hodgepodge of health and welfare pro-
fessionals and political appointees. The
coalition which is developing against
Michelson, like the entirety of the HIP
Board, is made up of people who share
only one point in common: they represent
no HIP subscribers. Appropriately, it is
led by another " loner, " Werner Kramar-
sky.
Kramarsky is a business consultant by
trade and a man on the political make.
Among other clients, he consults for vari-
ous voluntary hospitals, including Method-
odist in Brooklyn. During the first Lindsay
Administration, he was the Mayor's right-
hand man on health matters. He is also
the son law - in - of Dorothy Schiff, owner of
the New York Post, a matter of some im-
portance at City Hall, Kramarsky is gen-
erally thought to represent the views of
the voluntary hospitals and consequently
he is sympathetic to a greater role in HIP
affairs for Blue Cross, historically a hand-
maiden to the voluntary hospitals.
The outcome of Kramarsky's zealous
campaign against Michelson isn't clear.
Michelson doesn't seem worried; " Who, "
he asks, " does Kramarsky represent? "
The question is self answering -
.
At the moment William Michelson is
the man to watch at HIP. The question is,
can he be the kingpin between HIP, GHI
and Blue Cross and use it as springboard
to project himself as the national labor
expert on health care policy?
The chances are this question will not
" The City has always endeavored to obtain the best health
insurance program for the money available. We are now
confronted with a situation which challenges this
concept. This rate increase request may require the City
to examine other possible alternatives to insure equal
quality medical care for its employees and their
families at a cost which is fair and equitable to the
taxpayers of the City. "
-Harry Bronstein,
City Personnel Director,
Testimony at State Insurance Commission
Hearings on HIP Rate Increase
be immediately decided. Michelson claims
that a reexamination of HIP's balance
sheets reveals that it will wind up in the
black this year. Michelson's agenda is
to cut administrative costs by eliminating
dead wood, of which there is a forest - full
at HIP.
He speaks vaguely about his desire to
employ full time -
doctors at HIP. But the
conservative doctors who oppose a move
would seem to have little to worry about.
For now at least, it's clear that move-
ment in this direction is stalled.
More intriguing is Michelson's notion
of how HIP might obtain hospitals. He sug-
gests that the City might make a deal
allowing HIP to acquire municipal hos-
pitals " like Van Etten which are sitting
empty. " Just six months ago Health - PAC
released a series of confidential memos
from from the City's Health Service Ad-
ministration suggesting just such a plan
(see BULLETIN, May, 1972). Michelson's
membership on the Board of the Health
and Hospitals Corporation might yet
come in handy. For the moment, however,
hospital acquisition also seems relatively
distant.
While Michelson promises no cutbacks
of services, other HIP employees and con-
sumers are less optimistic. Stringent belt-
tightening may abate the crisis but HIP's
prognosis as an independent, prepaid
group practice is still very much in doubt.
When all is said and done, Michelson's
plan will simply bring HIP's wheel of mis-
fortune right back to where it started:
few full time doctors and no hospital-
based services.
Powers Behind The Scenes
Whatever course of action Michelson
elects to pursue, it is certain that he will
act on behalf of representatives of organ-
ized labor who have an interest in HIP's
direction. Indeed, without a unified labor
position on HIP policy, Michelson, whose
own union has few HIP subscribers, would
be left out in the cold. Ultimately, Michel-
son owes his power within HIP to the sup-
port of other union leaders whose mem-
bers do belong to HIP.
Prominent among labor " heavies " who
are close to Michelson is Victor Gottbaum,
President of District Council 37, which rep-
resents municipal employees, many of
whom are HIP enrollees. DC 37 is repre-
sented on the HIP Board by one of its Vice
Presidents, Lillian Roberts.
Another pivotal figure in the Michelson
" power bloc " is Jack Bigel. Now the head
of a multi million -
dollar - a - year consulting
firm, Program Planners, Inc., Bigel has his
roots in the trade union movement. Bigel's
firm, observers within HIP allege, does
consulting work for many unions whose
members belong to HIP, as well as for
GHI. Program Planners, Inc. is located in
the GHI owned -
building and Bigel is re-
portedly buddy buddy -
with Jim King,
GHI's Senior Vice President.
The plot thickens with the allegation
that Bigel's firm also does consulting for
HIP's conservative Medical Group Coun-
cil. How this mutually benefits the Council
and GHI can be seen in an event which
occurred eight months prior to HIP's pres-
21
ent crisis. At that time, GHI signed con-
tracts with eleven HIP medical groups,
all of which belonged to the Medical
Group Council. The contracts permitted
GHI subscribers to receive care at HIP
centers without enrolling in HIP. Neither
HIP nor its own subscribers benefited at
all from this arrangement. However, both
GHI and the Medical Group Council doc-
tors benefited. GHI was able to offer a
greater variety of services to its subscrib-
ers and the doctors happily bagged the
money. Bigel repeatedly refused to speak
to Health - PAC about these allegations.
While the agendas of most of the key
actors in HIP's current crisis - Blue Cross,
GHI, individual Board members and the
various doctor groups - are reasonably
clear, the same cannot be said about or-
ganized labor. On the surface, at least,
labor seems to have played in recent
years a contradictory role in HIP's affairs.
For example, while labor representatives
attended Board meetings only sporadi-
Dear HIP,
I am a member of HIP and over the past
half year have seen it starting to deteri-
orate. The medical center to which I be-
longed (Astoria Medical Group) suddenly
broke its affiliation with HIP. In fact, it was
so sudden that the HIP sent out notes in
mid April - that the affiliation with the
Astoria Medical Group would end July 1.
As it happened, it broke its affiliation two
months earlier without mentioning it to its
subscribers. I found this out in early May
when I had to go for a physical for the
university. I was forced to go to a tempo-
rary office where I got everything but a
lab test. My family transferred to the HIP
center on 57th Street, and thought we'd
get good service there. It took six visits to
get a simple lab test which consisted of
taking a blood sample and a urine speci-
men. The inefficiency astounded me. I
couldn't make an appointment before four
days, and that appointment was can-
celled by mail the day before I was sup-
posed to go. I had to wait over one and a
half hours past my appointment time (I
was there a half hour early) to see the
doctor for ten seconds, so that she could
OK my taking the lab tests. The lab, of
course, was closed by that time - it was
only open for three hours a day. Needless
to say, I was very happy that I wasn't
sick and had to get immediate medical
treatment. I made many phone calls com-
plaining about the service, and was
finally told by an HIP official that they
were in deep financial trouble....
Signed,
Student, SUNY at Buffalo
22
cally, it is widely believed that it was
labor's behind - the - scenes pressure which
in part led to Brindle's reorganization
plan. But after he announced the plan and
the chips were down, labor made an ab-
rupt about - face and convinced the City
not to grant the rate increase which was
necessary to implement it.
At the very least, labor's on again -
, off-
again stance toward the reorganization
plan had one certain effect: Displacing
Brindle left labor in the driver's seat. Un-
fortunately, organized labor in New York
City is faced with so many concerns other
than decent health care for its members
that the road it charts for HIP promises
to be bumpy.
Incontestably, labor leaders'primary
concern right now is their members'los-
ing battle against New York City's sky-
rocketing cost of living. Consequently,
unions are under great pressure to secure
increased wages. For unions representing
municipal employees, the problem is even
worse. They must confront penny - pinch-
ing City officials who claim that there is
no money for higher wages in the City's
empty till. To deal with the problem, some
observers speculate that labor entered
into a " sweetheart deal " with the City
over the rate increase of HIP. In return
for shortchanging HIP, labor would get a
higher wage settlement when new con-
tracts are negotiated. The problem with
the " deal, " however, is that union mem-
bers enrolled in HIP are also short-
changed. Now that organized labor has
assumed, at least for the moment, control
of HIP, we may see this scenario played
out over and over again. It would appear
that, faced with the Hobson's choice of
trading off improved health services for
union members against increased wage
and related settlements, labor will opt to
stand - pat with HIP. If, however, HIP ser-
vices continue to decline and cannot be
maintained without a large infusion of
money, labor could opt to dismember HIP
altogether. Should it so choose, GHI and
Blue Cross will leap at the opportunity to
pick up the pieces.
With all the machinations, intrigues and
plots, things do not bode well for HIP sub-
scribers. Unfortunately, while individual
HIP Board members, organized labor, HIP
doctors, GHI and Blue Cross representa-
tives are all scrambling for their piece of
the action, hardly a consumer is to be
seen. When, late in September, City em-
ployees are permitted to opt out of HIP
and select an alternative insurance pro-
gram, another five or ten percent will, un-
doubtedly, leave HIP. And so the silent
exodus will continue.
-Howard Levy and Oliver Fein
News Briefs
Murder on the Line
It sounds like the 1930's, but it only hap-
pened last August. In Philadelphia, Nor-
man Rayford, an organizer for Local
1199C of the National Union of Hospital
and Nursing Home Employees, was shot
and killed by a " security guard " named
Daniels in the parking lot of Philadelphia
Metropolitan Hospital. Workers at the hos-
pital laundry (owned by Metropolitan and
three other local hospitals) had been with-
out a contract for a year and on strike for
a month. Metropolitan had hired " security
guards " known in labor circles as
" goons ") to truck the hospital's laundry
to an out state - of -
scab laundry. Rayford
and other union activists had been follow-
ing the trucks in an effort to determine
where the dirty linen was being taken.
There were no witnesses to the shoot-
ing, which took place near the truck load-
ing platform. Daniels claims that he shot
in self defense - - that Rayford came at
him with a knife. Union spokesmen dis-
miss the charge, they cite the several oc-
casions on which Daniels had been re-
ported for emotional instability and har-
rassing and threatening 1199C workers.
As for the knife, the forthcoming 1199
News, which memorializes Rayford, states
that the knife was planted. Daniels has
been allowed to go free, pending an in-
vestigation by the DA's office. Whether or
not he will be brought to trial appears to
depend as much on public attention as on
the results of the investigation.
Blue Cross, Black Eye
What's more embarrassing than wind-
ing up millions of dollars in the red? It's
winding up $ 64 million in the black, if you
are the Blue Cross - Blue Shield Federal
Employees'Health Benefit Program, and
last December you demanded a 34 per- >
cent rate increase to prevent massive
deficits (to the tune of $ 146 million). The
Civil Service Commission, which con-
tracts with Blue Cross - Blue Shield, granted
the increase, but the Price Commission
trimmed it to 22 percent - over twice what
was apparently needed for the plan to
break even, so critics say now.
Even more embarrassing for Blue Cross
is the fact that the Federal Employees '
Plan and its " minor miscalculations " hap-
pen to be highly visible to federal author-
ities and to Congress. The plan covers 60
percent of the nation's federal workers and
750,000 Washington, area families. Hop-
ping mad is Jerome Waldie (D - Cal.), head of
the House Subcommittee on retirement,
insurance, and health benefits. He made
slashing attacks on both the Civil Service
and Blue Cross, and called for hearings
so that, among other things, Blue Cross
can explain why the plan's administrative
costs have leapt 253 percent in the last
five years while the plan has, as critics
charge, been cutting back on its service
benefits.
Let George Do It
While Richard Nixon sweet - talks labor
during the election campaign, the record
of George Guenther, his Assistant Secre-
tary of Labor for Occupational Safety and
Health, continues to leave a bitter taste.
In two recent administrative decisions,
Guenther has ruled that companies may
refuse to pay workers for time spent ac-
companying federal inspectors on plant
health and safety checks. Both of these
rulings were made against locals of the
Oil, Chemical and Atomic Workers Union
(OCAW), one at the Mobil Oil Refinery in
Paulsboro, New Jersey, and the other at
the Stauffer Chemical plant in Le Moyne,
Alabama.
These decisions, which OCAW is ap-
pealing, fly in the face of the Occupational
Safety and Health Act of 1970, which spe-
cifically forbids companies to " discharge,
or in any manner discriminate " against
employees who exercise their rights under
the Act. The law also specifically provides
for an employee representative to accom-
pany federal inspectors during inspections.
Richard Meyer, OCAW President at
Mobil Paulsboro -
, charged recently, " Most
workers in this country are unorganized
or in very small unions that don't have the
money to make up for lost wages. If work-
ers can't afford to take part in walk-
arounds, health inspections will become
an industry government -
charade. They'll
be absolutely worthless. "
Hospitals Fight NLRB
Never has concern for the patient run
so high among hospital administrators as
when, without anyone noticing, the House
of Representatives, by a vote of 285 to 95,
passed a bill extending coverage of the
National Labor Relations Act to employees
of nonprofit hospitals. Out to testify at
Senate Labor Subcommittee hearings was
a panoply of hospital organizations: the
American Hospital Association, eight state
hospital associations, two municipal hos-
pital associations, and two other hospital
associations. So loud has been the outcry,
that the bill, which was expected to sail
through the Senate, has been held up for
further testimony.
23
News Briefs Cont'd
ees
Columbus Hospital:
2 Steps Forward
1 Step Back
Tenants thought they had won a vic-
tory last summer when Columbus Hos-
pital on Manhattan's East mid -
Side was
forced into a " legal " agreement with occu-
pants of two buildings which it owned.
For at least three years, the hospital has
sought to demolish the 48 unit -, rent con- -
trolled building in order to build a 27 car -
parking lot.
But apparently the church is a law unto
itself (Columbus is Church - owned), for in
the year that followed Columbus pro-
ceded to violate virtually every provision
of the agreement (ceasing to evict tenants,
fixing building code violations, establish-
ing a tenant hospital -
committee to decide
disposition of the buildings, etc.). So last
month tenants returned to court, obtaining
a temporary restraining order barring
Columbus from removing tenants, filing a
suit for compensatory and punitive dam-
ages (to the tune of $ 30,000 a tenant) and
reinstating the taxpayers'suit to block
public financing of Columbus'new build-
ing (which the tenants had dropped pre-
viously as their part of the agreement).
The tenants are also planning a proces-
sional in honor of Mother Cabrini, founder
of Columbus Hospital, and ironically, pa-
tron saint of the homeless. The proces-
sional will take place at noon on Mother
Cabrini Day, November 11, in front of the
hospital which is located on East 19th
Street between Second and Third Avenue
and will be led by anti war - activist Father
Daniel Berrigan.
If these measures fail, the Catholic ten-
ants say they will appeal to a higher law
and legal system that of the church-
which somewhere must have a provision
about not keeping your word.
The Mosquito That Kills
A gruesome P.S. on the medical - eco-
logical devastation of the war in Vietnam
(see BULLETIN, May, 1971) was reported in
Le Monde on May, 17, 1972:
A " mosquito that kills " has appeared in
the region on both sides of the seven-
teenth parallel, according to reports from
Hanoi.
The new mosquito, called Falciparum,
has never before been known in this re-
gion of Vietnam. A high fever, coma and
then death are the symptoms which char-
acterize most of those who are bitten.
Quinine is ineffective against this disease
and a new cure is being sought. Accord-
ing to a Soviet doctor, the " mosquito that
kills " is carrying a kind of " plague. "
This region, pockmarked with millions
of bomb craters full of stagnant water,
has been invaded by these mosquitoes
and by rats and mice as well. In the com-
bat zones where air, the land and the
water have become a veritable breeding
ground of disease, dead bodies have be-
come the prey of these animals while
other cadavers are unearthed by the
bombs and shells.
The U.S. is responsible for the bomb
craters which nurture these mosquitoes.
Conspicuous by its absence is the specu-
lation that possibly the U.S. actually intro-
duced the mosquito..
WITCHES, MIDWIVES AND NURSES:
A HISTORY OF WOMEN HEALERS
by Deirdre English and Barbara Ehrenreich
A 48 page illustrated pamphlet on how women lay healers were
suppressed and how the male medical profession rose to dom-
inance. A study in the origins of institutional sexism.
It may be obtained for 75 from HEALTH - PAC
24
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