Document Yr7w4k4a44jERX6QpgzkNkvvn

COMPANY MEDICAL PP Several inquiries about the range and cost of company medical programs prompted Industrial Relations Counselors to undertake a quick investigation of the field. In November, 1946, a simple questionnaire was sent to fifty-two companies, of which forty-five returned usable replies. The medical departments reported on serve 560,163 employees at 156 loca tions or establishments. The size of company as well as size of operating unit varied greatly. The smallest company employed 975 workers and the largest multiplant concern, 105,800. In a number of cases data were for a group of representative establishments, while in others the information was for all plants. Cost figures for 1945 were made available for medical departments in 115 establishments, with approximately 406,500 workers. The average annual cost per employee was $9.42, ranging from a purely nominal figure of 71 cents in one relatively small headquarters office to $24 in the main factory of a drug company, which by reason of the nature of its business lays special emphasis on its medical program. The returns revealed no significant variation in cost per anployee according to size of plant or size of company, or even to the character of services offered. In view of the wide range in costs reported and probable differences in accounting (Additional copies of this memorandum _ PLAINTIFF'S EXHIBIT REC'D INDUSTRfAl5re ava^-a^e RELATIONS DEPT. . . \ (MEDICAL) 1 U contributor companies on request.)! MBL-308 002657 JUN 5 1947 _______________ ^ ft )____________________________________________ 1S4332 THIS MEMORANDUM 18 HOT FOR PUBLICATION vr*`. n procedure*t the avertj* figure given should be ref of the general level of such costa,* only as indicative % `f.*'*,'*. The total' personnel of medical departments reported by the forty- five ccanpanies wi 1,326, classified as follows? 25 aadical dirscfera^ 1 full-time doctors, 251 part-time doctors, 8 doctors "on call," 572 full-time nurses, 16 part-time nurses and 295 other staff. The part-time doctors worked on an average fifteen hours a week. Assuming that full-time doctors and medi cal directors are on duty an average of forty hours per week and taking account of the number of hours worked by part-time doctors, it appears that the equi valent of one full-time doctor was employed for every 2,089 employees.^ There was one full-time nurse for every 979 employees and one additional clerk or technician for every 1,899 employees. ;- . r.-.. !>% a ,i>*^ -- The size of establishment i3 an important factor in determining the basis on which doctors are employed, as is shown in the following tabulation: Employees Less than 500. 500--999........... 1,000 and over Total# Estab lishments 32 28 96 156 Percentage of Establishments With Doctors on Specified Basis Full Time Part Time Full and Part Time On Call None 1 21.4 37.5 71.9 60.7 42.7 * 14.6 3.1 25.0 17.9 3.1 2.1 25.6 51.9 10.3 2.6 9.6 1 The American College of Surgeons found the average per capita cost in 1942-1943 to be $6,21, ranging from $7.82 in plants with less than 500 employees to $5,59 in plants with 1,000 or more employees. G. R. Hess, Medical Service in Industry and Workmen's Compensation Laws (revised ed.), Chicago: American College of Surgeons, 1946, p. 57. 2 In calculating this figure the plants for whose part-time doctors the number of hours worked was not reported and two large plants where complete medical service is furnished to the families of emplovees were excluded, 002688 184333 3 Hursa, aot of tfaea full-tie*, were employed at 84 per cent of th* locations. In establishments without nurses, doctors' services on seme basis were provided except in a handful of locations where there were fewer than 500 employees* The most complete medical coverage was supplied by companies that employed only full-time doctors, where there was one for every 1,498 employees, and $13.42 per employee was spent on the program. Companies that made use only of part-time doctors had the equivalent of one full-time doctor for every 3,703 employees and spent $6.18 per employee. Those companies, generally large and with multiplant operations, that engaged both full-time and parttime doctors provided the equivalent of one full-time doctor for every 2,085 employees, and the programs cost an average of $9.04 per employee. Of the forty-five reporting companies, nineteen, mainly firms with multiplant, scattered operations, had full-time medical directors at their central headquarters, whose duties were principally administrative. Three companies relied on part-time medical directors and two received advice from outside doctors. In two companies the medical programs were supervised by registered nurses. Fifteen out of the twenty-two companies employing full-time doctors permitted them also to engage in private practice. Of the 156 full-time doctors, however, 98 were not given this privilege. As would be expected, full-time doctors, with rare exceptions, are compensated by salary. Of the part-time doctors, 151 were on salary, 98 on a fee basis. The replies show not only that is there general recognition of the need for pre-employment physical examinations among the reporting companies 002669 184334 ' --**r but that a proportion of the* Sri* 6m &?* examinations* Sea# indication of the intenaivenasa of tha given by the character of equipment provided, which included th* fbHewinitt I ray (34*6 per ceat..^^taWi^l^nta)> cardiograph (19*9, 8 basal metabolian (5..1 per cent;. First ala wee arsf locations, and in most cases the treatment was given in rooms especially equipped for this purpose. In the field of preventives, somewhat over half the establishments were giving vaccines or vitamins. Physiotherapy was also fairly common, with infrared and ultraviolet lamp installations in 66 and 51 per cent of the establishments. Although relatively few companies felt it necessary to provide optical examinations, nearly half of them made use of some Vind of optical equipment in examining employees* About 7 per cent of the establishments provided home nursing for employees,'bnd IBS sains' proportion supplied medical service to the families of employees The character of the service provided in the 156 establishments of the forty-five companies furnishing this information is summarized in the following tabulation, which lists the services in order of their prevalence: Medical Service Provided Percentage of Establishments Reporting Specified Service Pre-employment examinations,. 95*5 First-aid treatment,................................................. 95.5 Periodic examinations. 71.8 Preventives, vaccines, vitamins......... .. 55.1 Physiotherapy................................................................ 41.0 Optical examinations.................................... 13.5 Heme nursing...................... 7.1 Medical service to family....................... ............. 7.1 Laboratory examinations........................................................ 4.5 Dentistry,....,....................... 3.2 Psychiatry,....................... 2.3 V ' oo2e?o 184335 Medical Facilities Provided- Percentage of . Establish First-aid room....... Infrared lamp............... Ultraviolet lamp..... Eye-testing equipment X ray................. .............. 92.9 66.0 51.3 47.4 34.6 Cardiograph equipment............................. 19.9 Oxygen tents.................................. 5.1 Basal metabolism equipment......... .. 5.1 Diathermy machine......................................... 5.1 Operating room................................ 51 Dental equipment...................................................................... 4.5 Dental X ray.............. *7,............i.TVTJrr.'" "3*Sh-- Ambulance. 3.2' Ward in local hospital............... .. 1.9 The information on costs and size of staff is shown for 111 establishments in the attached table. K C -- L -w*/ w ^ / 'tt`t." - l 002671 1'84336 % Company Coda Annual Cost of Employes* P*fUfc: Employes Medical staff Chemicals, Drugs and Soap Products Company A Company 3 Company C Company D Unit 1 . <* 3 4 5 6 7 Total 4,350 3,542 975 $15.16 $24.00 $17.03 1 1 1 4 2 1 13 3 12 6 11 609 1,920 1,206 507 486 279 237 $15.16 6.24 9.60 11.53- 9.91 15.59 19.62 ---- ----- - -- 1 1 1 1 2 1 .......1--------- r_.~ 1____ ------------ - 11 11 11 5,244 $10.00 3 48 Electrical Products Company E Unit 1 2 3 4 5 6 7 Total 1,500 13,000 4,500 4,300 2,000 1,700 2,000 29,000 $10.00 2.23 8.89 8.37 5.50 11.18. 9.50 $ 5.83 1 22 1 361 145 1 71 13 2 11 14 1 15 27 10 Company F Unit 1 2 3 4 27,353 32,340 7,523 5,304 $13.86 12,60 19.86 22.83 1 1 4 29 47 36 6 18 46 25 1 8 22 22 4 15 2 Total 73,520 $14.62 2 11 59 130 85 iSp 002673 'fc-ik' " 184337 Company Code Annual Cost of Employees gss^e* is-'^v-sss^le-i Uedical Staff Doctors. - -'WyPJpT^ Food and Allied Product* Company G Unit 1 2 3 4 5 Total 1,200 600 1,300 1,200 1,200 5,500 $3-83 8.50 11.54 3.-33 3-75 $ 6.04 11 11 11 1 11 54 1 1 2 Company H Unit 1 2 3 4 5 Total 637 5,147 1,542 4,378 5,248 17,002 $21.11 7.29 7-78 7,42 11.57 $ 9.25 -- ------ 2------- -- 2 1 3 8 1 ----- 1 1 3 . __ 2 2 6 14 Company I Unit 1 2 3 4 5 6 Total Company J 1,842 936 282 1,490 589 263 5,402c 1,180 $ 2.39 .84 4.62u .12 1.11 1.52 $ 1.43 $13.86 1 3j 1 1* 1 la 1 1 la 1 6 6a 12 1 Company X 1,200 $12.92 d 63 Company L Unit 1 2 3 4 5 6 Total 936 1,350 789 428 200 174 3,877 $ 8.17 2.91 4.96 5.01 2.59 12.95 $ 5.26 12 12 11 11 46 002&73 184338 Company Cod*, kaxa& Cost of Employees So^rice* C . i jgBMKHVttflr Medical Staff Doctor# Hursea .Other* Company M Company N Unit 1 2 3 Total 3,500 3,450 5,540 3,000 11,990 1 5.01 $17.68 27.62 10.00- $20.35 Machinery 11 2 1 14 Metal Products -} 25 ,6 6 1 6- 1 18 2 3 1 6 Company 0 Unit 1 2 3 4 5 6 7 8 9 10 11 12 1,125 1,702 166 348 372 2,002 1,012 229 936 658 1,026 781 $ 4.99 20.58 2.90 14.65 15.73 17.55 13.97 17.2510.65 16.69 9.27 15.18 1 .1 1 4. 1 11 11 13 13 11 11 11 12 12 Total 10,357 Company P 1,474 Company Qe 560 Company R 2,688 $14.25 $ 6.78 $ 1.94 $11.16 1 12 20 14 22 25 Company S 3,907 $ 3.58 15 002674 184339 { Company,' Ccd#j^5 <-.33fB j Waal' C6a* ot * $BSl KSdicaV Staff. jjjjcfetrp- ^ |j ,, | Company T Unit 1 2 155 .71 1,526 4.59 Total 1,431 1 4,23 Company U Unit 1 2 3 4. 3,000 900 900 ..... 875. 17.20 7.44 10.56 __ 5,54. Total 5,675 12.36 Company V Unit 1 2 3 4 5 Total Company X Unit 1 TotaX 8,000 308 335 320 262 9,225 12,79 1,650 350 .V 4 . .. 2^P$. cZ*5</ Company X Company T 1,600 1,144 7.81. 5.91 Paper Product# 13 1 1 .1 16 Public Utilities i 3 l3 - Publications 11 11 8 1 2 ^ 11 23 11 1 1 11 11 67 21 1 31 1- 2 11 5 5 2 2 1 00675 184340 * tr COST Of MEDICAL SHWICB (Continued) 10 Company Cod* ... . Annual Cost ef Saployees Services 4" Hr \ Snployea Medical Staff Director Doctors Mursea. Full Tima Part Time . Others Textile Products , Company Z Unit 1 2 3 4 5 6 7 8 500 2,600 3,900 2,300 3,500 3,400 1,300 3,200 2 1 1 1 1 1 1 1 12 62 62 62 62 62 62 62 Total 20,700 $14.49 2 7 43 16 Company AA 2,878 $12.31 1 2 3 Company BB 1,022 $ 8.23 12 Company CC Unit 1 2 Total 4,036 3,495 7,531 $ 2.97 3.15 $ 3.05 Miscellaneous 3 3 6 1 1 2 Company DD Unit 1 2 3 4 5 6 5,900 7,844 22,647 41,346 14,850 13,182 $11.75 7.20 3.92 6.83 4.87 5.31 Total 105,769 $ 6.11 1 1 1 3 1 83 7 1 23 4 3 7 4 15 1 30 17 35 53 7 1 5 11 4 7 57 41 72 Company EE Unit 1 2 3 Total 997 500 406 1,903 $21.02 86 81 1 17 7 002676 184341 COST CT MEDICAL SERVICES (Continued) 11 Company Code Annual Cost of Employees Services Per Eaployee Medical Staff Director Doctors Nurses Pull Time Part Time Other*. Miscellaneous (Continued) Coopany FF Unit 1. 2 3 4 5 6 2,500 4,000 2,200 2,000 1,000 2,000 Jr- 112 14 1 31 1 31 121 11 1 Total 23,OOOh $ 5.43 1 5 3 10 7 Company GG Unit 1 21,511 2 l',2 - 1 7 1 13 3 14 Total 22,761- $4.91 1 n( 2 17 3 Company HH Unit 1 13,000 2 1,300 $ 9.67 3.85 - 1 4 3 4 13 21 Total 14,300- $ 9.14 1 7 6 14 a Employed seasonally, twelve to thirty weeks, b Employee-paid medical plan, c Includes 417 regular employees, 4,985 seasonal workers, distributed propor tionately among plants, d Outside adviser." e One-unit only/ t Estimated^ for 1946* ~- e On call. h Including subsidiaries. ^ (Prepared by Industrial Relations Counselors, Inc., for Industrial Relations Memos, No. 91) 1 002677 184342