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The original documents are located in Box 9, folder "Health (3)" of the Theodore C. Marrs Files at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. sell THE WHITE HOUSE WASHINGTON SCF July 29, 1975 MEMORANDUM FOR: PAUL O'NEIDI FORD & LIBRARY 038470 FROM: TED MARRS This is a valid need which I would like to see us support if there is a mechanism. Any suggestions? Enclosure RECEIVED Digitized from Box 9 of the Theodore C. Marrs Files at the Gerald R. Ford Presidential Library GEORGETOWN UNIVERSITY WASHINGTON. D. C. 20007 OFFICE OF THE PRESIDENT SPECIAL ASSISTANT FOR FEDERAL RELATIONS July 1, 1975 The Honorable Theodore C. Marrs Special Assistant to the President Human Resources The White House Washington, D.C. Dear Dr. Marrs: This is a follow up on our meeting on June 23rd, when you graciously reviewed our letter to you of June 13, 1975 concerning the $16,000,000 for Children's Hospital National Medical Center and the $6,000,000 for the Concentrated Care Center at Georgetown Uni- versity Medical Center contained in the Second Supplemental Appro- priation Act of 1975. The specifics of the financial needs of the Children's Hospital National Medical Center were reviewed by Mr. Edgar N. Duncan, Assistant Surgeon General and Acting Director of Hospital and Medi- cal Facilities, on July 1. We presented to him the need for author- ity to accept $10,000,000 in bids before July 11, 1975. Mr. Duncan agreed to the need but stated that the apportionment of the $16,000,000 to the Secretary of the Department of Health, Education and Welfare for this project must be made before he can authorize the acceptance of these bids. At our meeting with Mr. Duncan the requirements of the add- itional construction at the Concentrated Care Center were also re- viewed. Mr. Duncan again pointed out that the apportionment of the $6,000,000 grant funds for this project must be made before it can proceed. On the same day (June 23rd) that we visited you, Judge Ely and we two met briefly with Mr. Paul O'Neill, Deputy Director of the Office of Management and Budget and presented our plea to him. If there is anythingelse you believe we should do, we stand ready. We are praying. We are deeply grateful for your counsel and interest. T.Byron Collin sg. Sincerely, T. Byron Collins, S.J. John John H. Sharon H. Sharon Special Assistant to the President Chairman, Children's Hospital Georgetown University National Medical Center CC: Mr. Paul O'Neill, Judge Ely ohysician physician FORD è LIBRARY The Children's Grusade \ Oo 105 0. E. 0. B. Washington, DC 20500 Change due to official orders. AUGUST 1975 1975 05104700693 JOHN JOS MAHONEY MD 102 THORNELL SAN ANTONIO TX 78235 Some items in this folder were not digitized because it contains copyrighted materials. Please contact the Gerald R. Ford Presidential Library for access to these materials. File Georgatown and DESUCATION DEARTMENT AND WELFARE HEALTH. OF D.C. childrens Hospitals DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE OFFICE OF THE SECRETARY U.S.A. WASHINGTON, D.C. 20201 GERALD R. FORE 11 AUG 1975 MEMORANDUM FOR HONORABLE THEODORE C. MARRS This is in response to your requests of June 19 and 26 on behalf of Mr. John H. Sharon, Chairman, Children's Hospital, and Reverend T. Byron Collins, S.J., Special Assistant to the President, Georgetown University. Please excuse the delay in replying. Father Collins and Mr. Sharon's letter to you requested your intercession with the Department to seek immediate release of the $22,000,000 provided in the fiscal year 1975 Second Supplemental Appropriation Act for Children's Hospital and the Georgetown University Concentrated Care Center. The funds were appropriated June 12 in the Second Supplemental Appropria- tions Act, 1975 (P.L. 94-32) to support ongoing construction projects at the Children's National Medical Center and the Georgetown University Concentrated Care Center. These funds were directly allocated and made available for obligation. In order to minimize the size of a growing budget deficit, the Office of Management and Budget advised the Depart- ment that it was considering proposing a rescission to Congress. Accordingly, the funds were withdrawn and placed into reserve. After a thorough review of the purposes and need for these funds, the Office of Management and Budget decided not to submit a rescission to Congress, and funds were released on July 25. The funds were again allocated and made available for obligation. In accordance with standard procedures, Georgetown University was notified by the Department of the release of these funds. Since your request has been overtaken by events, we are not enclosing a draft reply. David nat Lissy Executive Secretary to the Department Ted - & you w of this + that this note is just for therecoud my HEALTH. EDUCATION: DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE OFFICE OF THE SECRETARY U.S.A. WASHINGTON, D.C. 20201 11 AUG 1975 MEMORANDUM FOR HONORABLE THEODORE C. MARRS This is in response to your requests of June 19 and 26 on behalf of Mr. John H. Sharon, Chairman, Children's Hospital, and Reverend T. Byron Collins, S.J., Special Assistant to the President, Georgetown University. Please excuse the delay in replying. Father Collins and Mr. Sharon's letter to you requested your intercession with the Department to seek immediate release of the $22,000,000 provided in the fiscal year 1975 Second Supplemental Appropriation Act for Children's Hospital and the Georgetown University Concentrated Care Center. The funds were appropriated June 12 in the Second Supplemental Appropria- tions Act, 1975 (P.L. 94-32) to support ongoing construction projects at the Children's National Medical Center and the Georgetown University Concentrated Care Center. These funds were directly allocated and made available for obligation. In order to minimize the size of a growing budget deficit, the Office of Management and Budget advised the Depart- ment that it was considering proposing a rescission to Congress. Accordingly, the funds were withdrawn and placed into reserve. After a thorough review of the purposes and need for these funds, the Office of Management and Budget decided not to submit a rescission to Congress, and funds were released on July 25. The funds were again allocated and made available for obligation. In accordance with standard procedures, Georgetown University was notified by the Department of the release of these funds. Since your request has been overtaken by events, we are not enclosing a draft reply. /2/ DavidH Lissy David H. Lissy Executive Secretary to the Department HEALTH. of DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE OFFICE OF THE SECRETARY U.S.A. WASHINGTON, D.C. 20201 11 AUG 1975 MEMORANDUM FOR HONORABLE THEODORE C. MARRS This is in response to your requests of June 19 and 26 on behalf of Mr. John H. Sharon, Chairman, Children's Hospital, and Reverend T. Byron Collins, S.J., Special Assistant to the President, Georgetown University. Please excuse the delay in replying. Father Collins and Mr. Sharon's letter to you requested your intercession with the Department to seek immediate release of the $22,000,000 provided in the fiscal year 1975 Second Supplemental Appropriation Act for Children's Hospital and the Georgetown University Concentrated Care Center. The funds were appropriated June 12 in the Second Supplemental Appropria- tions Act, 1975 (P.L. 94-32) to support ongoing construction projects at the Children's National Medical Center and the Georgetown University Concentrated Care Center. These funds were directly allocated and made available for obligation. In order to minimize the size of a growing budget deficit, the Office of Management and Budget advised the Depart- ment that it was considering proposing a rescission to Congress. Accordingly, the funds were withdrawn and placed into reserve. After a thorough review of the purposes and need for these funds, the Office of Management and Budget decided not to submit a rescission to Congress, and funds were released on July 25. The funds were again allocated and made available for obligation. In accordance with standard procedures, Georgetown University was notified by the Department of the release of these funds. Since your request has been overtaken by events, we are not enclosing a draft reply. /s/ David H. Lissy David H. Liasy Executive Secretary to the Department THE WHITE HOUSE OFFICE REFERRAL To: SECRETARY, HEW Date: June 19, 1975 ACTION REQUESTED Draft reply for: President's signature. Undersigned's signature. NOTE Memorandum for use as enclosure to reply. Prompt action is essential. X Direct reply. If more than 72 hours' delay is encountered, X Furnish information copy. please telephone the undersigned immediately, Code 1450. Suitable acknowledgment or other appropriate handling. Basic correspondence should be returned when Furnish copy of reply, if any. draft reply, memorandum, or comment is re- quested. For your information. For comment. REMARKS: EXEC SEC EXEC' 2EC' ARH A 7506240111 21° M9 Es A M9 ES A asnum as num BECEINED Description: X Letter: Telegram: Other: To: Dr. T. C. Marrs From: John H. Sharon 7506240112 Date: June 13, 1975 Subject: Children's Hospital National Medical Center By direction of the President: Theodax l mans Theodore C. Marrs TRACER/3916 Special Assistant to the President (Copy to remain with correspondence) AM 389 DIRECTOR'S CORRESPONDENCE RECE VED THE WHITE HOUSE Action to: Hanna JUN 30 10 16 All '75 Vic Zafra WASHINGTON Reply for: Dir Dep June 26, 1975 D MANAGEMENT&BUDGET Control No: Due Date: 0100 7/14 Info Copies: MEMORANDUM FOR SECRETARY, HEALTH, EDUCATION, AND WELFARE THRU: OFFICE OF MANAGEMENT AND BUDGET (PAUL O'NEILL) UV An evaluation of the attached and an appropriate draft response will be appreciated (see page 1.) Jhudon Theodore C. Marrs Than Special Assistant to the President Enclosure EXEC'2EC HUV 7507090010 for 10 6H.12 BECEINED TRACER R/4628 CONTENTS Page Letter dated June 13, 1975, Fr. Cellins and Mr. Sharon to the Hon. Theodore C. Marrs 1 Letter dated March 10, 1975 - Fr. Collins and Mr. Sharon to The Hon. Warren Magnuson and The Hon. Edward W. Brooke 2 & 3 Letter dated March 26, 1975, Mr. Sharon to Fr. Collins 4 Statement titled 'Georgetown University Hospital - Concentrated Care Center Phase II - Parking Structure' dated March 26, 1975 5 House of Representatives Report No. 94-141 on Second Supplemental Appropriations Bill (P. 27 & 28) 6 & 7 Senate Report No. 94-137 on Second Supplemental Appro- priations Bill (P. 36) 8, 9, Conference Report No. 94-239 Making Supplemental Appro- priations Fiscal Year 1975 (P.10) 10 11 GEORGETOWN UNIVERSITY WASHINGTON, D. C. 20007 OFFICE OF THE PRESIDENT SPECIAL ASSISTANT FOR FEDERAL RELATIONS June 13, 1975 The Honorable Theodore C. Marrs Special Assistant - Human Resources The White House Washington D.C. 20500 Dear Mr. Marrs: As you know, the Second Supplemental Appropriations Bill contained additional funds towards the completion of the Children's Hospital National Medical Center ($16,000,000) and the Concentrated Care Center at Georgetown University ($6,000,000). It is critical for the Children's Hospital project that these funds be made available immediately to enable them to receive bids on the project in sequential order. The dedication ceremony for this facility is scheduled for July 4, 1976, and as you know, President Ford has been invited to attend (cf enclosed correspondence). The Concentrated Care Center at Georgetown University is also in critical need of the appropriated funds so that the work on their project may not be delayed. May we ask you intercession with the Office of the Secretary of the Department of Health, Education and Welfare for the immediate release of these funds to the HEW Regional Office in Philadelphia so both of these projects may be kept in steady progress towards com- pletion in accordance with the intent of the Appropriations bill. On behalf of Children's Hospital National Medical Center and Georgetown University we thank you for your interest and counsel. Sincerely, T.Byon T. Byron Collins, Collens S.J. 5.9 phn H. Sharon John H. Sharon Special Assistant to the President Chairman, Children's Hospital Georgetown University National Medical Center 1. GEORGETOWN UNIVERSITY WASHINGTON. D. C. 20007 FFICE OF THE PRESIDENT SPECIAL ASSISTANT FOR FEDERAL RELATIONS March 10, 1975 The Honorable Warren Magnuson The Honorable Edward W. Brooke Committee on Appropriations Subcommittee on Labor and Health, Education and Welfare U.S. Senate Washington D.C. 20510 Dear Senator Magnuson and Senator Brooke: We thank you for having given us the opportunity to testify be- fore your Committee on our desperate need for final phase grant funds to complete our national experimental research projects - Children's Hospital National Medical Center and the Concentrated Care Center at Georgetown University. We are pleased to furnish you with additional information to clarify point mentioned in the hearing. Children's Hospital Fund Drive and loan program had hoped to bring in $27,058,000. In the just completed Fund Drive analysis we find that the present pace of the economy has slowed the expected com- mitments to the Fund Drive. However, we are certain we can obtain the matching one-third of the project cost, $23,485,354, to enable us to finish on schedule, provided the Senate will give favorable considera- tion to our deep need for this final request for $21,575,000 grant funds for Children's Hospital. Georgetown University can also meet its matching one-third of the project cost, $11,800,000, provided the Senate will give favorable consideration to the request for $8,000,000 for the Concentrated Care Center. The request for these essential final phase funds would be for a total of $29,575,000 grant funds. We thank you for your help in our final plea for funds. Sincerely, T. Byron Collins, S.J. 5.9- John Sharon John H. Sharon Special Assistant to the President President, Children's Hospital Georgetown University National Medical Center 2. Enc: Method of Funding March 10, 1975 1975 SUPPLEMENTAL APPROPRIATIONS GRANT REQUEST - CONCENTRATED CARE CENTER $8,000,000, CHILDREN'S HOSPITAL NATIONAL MEDICAL CENTER $21,575,000. Concentrated Care Center Experimental Project, Total Cost Estimate $35,000,000 Method of Funding Phase I - - Cost $23,000,000 Grant HEW Appropriations 1969-70 $ 6,900,000 Grant P.L. 92-80 8,300,000 Loan P.L. 92-80 6,700,000 Private Resources 1,100,000 $23,000,000 Phase II - Cost $12,000,000 1975 Supplemental Appropriation Grant Request 8,000,000 From Existing Federal Loan Programs 4,000,000 12,000,000 $35,000,000 Summary of Financing of Phases I and II Federal Grants Phases I & II $23,200,000 (two-thirds) Private Resources and Loan Phases I and II 11,800,000 (one-third) Total cost of Project - - $35,000,000 Children's Hospital National Medical Center Experimental Project Total Cost Estimate $70,459,933 Method of Funding Phase I - - Cost $44,884,933 Grant - P.L. 90-457 $13,399,574 Grant - P.L. 93-50 12,000,000 Federal Loan - - P.L. 90-457 13,399,579 Fund Drive 6,085,780 $44,884,933 Phase II - Cost $25,575,000 Grant Request in HEW Supplemental 1975 21,575,000 Federal Loan (from existing programs) 4,000,000 25,575,000 $70,459,933 Financial Summary Grants Phases I and II $46,974,579 (two-thirds) Private Resources and loans Phases I and II 23,485,354 (one-third) $70,459,933 3. CHILDREN'S HOSPITAL NATIONAL MEDICAL CENTER 2125 Thirteenth St., N.W., Washington, D.C. 20009 (202) 835-4000 CHILD HEALTH CENTER CHILDREN'S HEARING AND SPEECH CENTER HILLCREST CHILDREN'S CENTER RESEARCH FOUN- DATION OF CHILDREN'S HOSPITAL DEPARTMENT OF CHILD HEALTH AND DEVELOPMENT, GEORGE WASHINGTON UNIVERSITY March 26, 1975 Father T. Byron Collins Georgetown University Healy Building Third Floor Washington, D. C. 20007 Dear Father Collins: As you know, we carry on our Statement of Resources our land and buildings in the amount of $3,000,000, even though all of our premises have been officially appraised at a higher figure. The book value figure of $3,000,000 is both reasonable and con- servative, but I have been informed that it will be impossible for us to realize at this time a sale of the premises at $3,000,000. The District of Columbia government is anxious to purchase our land and buildings for different uses, but I have been informed that the District of Columbia at this time does not have the required $3,000,000 to purchase our facility. With best wishes. Sincerely, John 4 Sharin John H. Sharon 4 JOHN H. SHARON ROBERT H. P ARROTT, M.D. NOEL E. KRONCKE BEALE H. ONG, M.D. Prestdent Director Admini strator Charman of Medical stay March 26, 1975 GEORGETOWN UNIVERSITY HOSPITAL Concentrated Care Center Phase II Parking Structure Estimated Cost: $4,000,000 666 automobiles Capacity: Reservoir Road entrance # 3 Location: west of Concentrated Care Center Site: Presently occupied by 93 auto- mobile capacity ground level parking lot. Parking Consultant: Stephen G. Petersen, P.E. Perkins and Will Architect: Purpose: To provide parking for patients, visitors attending Staff and employees of the 160 Bed Concen- trated Care Center, now under con- struction (Peak population of over 1000 persons). Combination of Federal Grants and Funding: Commercial loans. Schedule: Completion approximately 18 months, to coincide with opening of CCC. Pro Ration of Cost: 62.5 % of this facility is required for the Concentrated Care Center. 62.5% X $4,000,000 = $2,500,000. 5 P.27 94TH CONGRESS } HOUSE OF REPRESENTATIVES REPORT 1st Session No. 94-141 SECOND SUPPLEMENTAL APPROPRIATIONS BILL, 1975 APRIL 10, 1975.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed Mr. MAHON, from the Committee on Appropriations, submitted the following REPORT together with SEPARATE VIEWS [To accompany H.R. 5899] The Committee on Appropriations submits the following report in explanation of the accompanying bill making further supplemental appropriations for the fiscal year ending June 30, 1975, and for other purposes. INDEX TO BILL AND REPORT Page number Bill Report Narrative summary of bill 2 Tabular summary of bill 5 Title I-General Supplementals 2 Chapter I-Agriculture 2 8 Chapter II-Defense 2 10 Chapter III-Housing and Urban Development-Independent Agencies 3 16 Chapter IV-Interior and Related Agencies 4 19 Chapter V-Labor. and Health. Education, and Welfare 5 24 Chapter VI-Legislative Branch 11 40 Chapter VII-Public Works 14 46 Chapter VIII-State, Justice, Commerce, and Judiciary 14 53 Chapter IX-Transportation 19 62 Chapter X-Treasury, Postal Service, and General Govern- ment 22 69 Chapter XI-Claims and judgments 24 76 Title II-Increased pay costs 25 76 Title III-General Provisions 50 108 6 27 ment Assistance Act of HEALTH RESOURCES ADMINISTRATION advanced to this appro- ayment of such compensation HEALTH RESOURCES ment necessitates this appro- The bill provides $127,600,000, an increase of $61,100.000 over the licient funds will be available budget request. This is in addition to the $159,443,000 appropriated to nefits. To the extent that these date for health resources. The bill further includes authority to spend three accounts, they will be $8,500,000 from the Social Security trust funds to support the review conomic situation is so uncer- of capital expenditures prescribed in section 1122 of the Social Security timate contained in the budget Act. de until September 30, 1976, This appropriation supports the implementation of the National sted in the budget. Health Planning and Resources Development Act of 1974 (P.L. ge in the bill to preclude the 93-641). This legislation adds two new titles to the Public Health istance benefits during the up- Service Act. The first, a new Title IV. is designed to replace existing o have contracts for the next health planning programs such as Comprehensive Health Planning. ar to that contained in the Regional Medical Programs and the Experimental Health Services 1970, in which the Congress Delivery Systems. The second. a new Title XVI, is designed to ent insurance coverage to em- replace the existing Hill-Burton program for the construction and education and provided that modernization of health care facilities. In addition. P.L. 93-641 and certain other individuals authorizes an appropriation of such sums as may be necessary to demic years if the individuals support the transition operations of the Comprehensive Health Emergency Jobs and Unem- Planning Agencies, Regional Medical Programs, and the Experi- contain a similar prohibition, mental Health Services Delivery Systems. The Committee approved ion that some States are con- 100 of the 150 new positions requested and reduced the amount ers this summer. budgeted for new positions by $100,000. The total positions available for this new program will be 369. AGEMENT The bill provides $50,000,000. an increase of $38,000,000 over the ENSES request for Regional Medical Programs in order that on-going projects may complete their work and thus provide for a smooth and orderiy of $400,000 from the budget transition from the old to the new program. The appropriation of are ; out the Department transition funds for Comprehensive Health Planning. Regional le of 1974. The amount Medical Programs. and the Experimental Health Services Delivery stead of S0 as requested in stems is intended to establish the level of funding for these programs in fiscal year 1975. increased responsibilities in In recognition of the timing of this appropriation, the Committee ions, trade adjustment as- has extended the availability of $18,700.000 until December 31, 1975 and trade-related economic in order that these funds may be available to support the initiation roved in the bill are for the of the new State agencies for Health Planning and Development, and the Office of the Solicitor. the local Health Systems Agencies. These funds are also available to new positions are required support the establishment of procedures. guidelines, and regulations sufficient funds to finance to further the rapid development and efficient functioning of these fiscal year, instead of three new agencies. udget request assumed an Included in the bill is $1,200,000 for nursing research projects. No budget request was submitted for this activity. Nursing research TION, AND WELFARE project funds support projects dealing with all aspects of patient care. nursing as an occupation. nursing education, expanded or extended EALTH ADMINISTRATION roles for nurse practitioners and communication of research findings. There have been no new projects started in the past two fiscal years. TAL The Committee believes this is a modest amount which would fund int as the budget request. approximately 15 new projects. 00 currently available for The bill includes $22.000.000 for D.C. Medical Facilities to com- rs the increased Federal plete construction of Children's Hospital and a Concentrated Care benefits. The government Center at Georgetown University Medical Center. No budget request e benefits increased from was submitted for this item. The total cost of Children's Hospital is estimated at $70,458,933. To date, $40,458.933 has been appropriated by Congress, and an additional appropriation of $16,000,000 is needed to complete the 7 28 project. The facility will provide specialized hospital research and has denied this patient treatment and services in units which will serve as models for accordance with delivery of health services to children in a more economical and The Committee effective way. In view of the overwhelming support that has been gram level becaus indicated for this project, this Committee feels that the requested emergency program Federal assistance should be provided to complete this hospital. as a whole. is The total cost of the Concentrated Care Center is estimated at existed a few years $32,500,000. To date, $21,900,000 has been appropriated for this Committee believ project and an additional appropriation of $6,000.000 is needed to with the problem complete construction. The Concentrated Care Center is a model for program is forwar renovation of over 7,000 hospitals throughout the nation. Many in school year features of the Concentrated Care Center have been initiated by over The Committ 50 hospitals to date. funds from this authorized by OFFICE OF EDUCATION matics" or "Pro The Commit ELEMENTARY AND SECONDARY EDUCATION of the most racial isolation The bill includes $4,000,000 for carrying out the Alcohol and Drug speaking child Abuse Education Act, for which there was no budget request. The sufficient funds amount in the bill is $1,700,000 less than the fiscal year 1974 appro- for the continue priation. The Committee deferred consideration of this program in the regular bill for 1975 due to lack of authorizing legislation. The drug abuse education program is primarily a training program for groups such as teachers. counselors, and law enforcement personnel: The bill inclu and a community education program for parents and other people for the Guaran's interested in the problems of drug abuse. Although there is no budget to $315 miiiion request from the Administration, the Committee believes that there This is, in etfe should not be an abrupt termination of the program. The amount in- loans are mac cluded in the bill is sufficient to continue existing projects. government students. The EMERGENCY SCHOOL AID profit agencies outstanding The bill includes $125,000,000 to carry out the Emergency School students. This Aid Act, an increase of $50,000,000 over the budget request and a students who decrease of $109,000,000 from the fiscal year 1974 appropriation. The a special allowan program provides funds to local education agencies and certain public on all loans and private nonprofit organizations in order to meet special needs The additio: related to school desegregation. Funds are apportioned among the of $4,400.000 States in accordance with the distribution among the States of minority larger than group children aged 5-17. There are also several setasides in the basic in the average law for various categorical programs. Some of the activities eligible for in the specia: assistance under the Act are teacher aides, supplemental staff, reme- rates currently dial services, teacher training, guidance and counseling, and curriculum was based development. Two of the principal categorical setasides in the Act are now estimat for bilingual education and educational television programming for maximum 3' children. The Committee has deferred consideration of the program until now because the Office of Education informed the Committee that efforts were being made by the Administration to amend the Act. The bill in Since the program is forward-funded and virtually all of the money to pay for in is obligated in the fourth quarter of the fiscal year, deferral of con- Government. sideration by the Committee has had no adverse impact on the pro- in the regular gram. As a result of the Administration's failure to have the basic This Fund law amended through the legislative process, the budget proposes, in Higher Edu effect, to do the same thing in the appropriation bill. The Committee ing expenses 8. Calendar No. 132 94TH CONGRESS ~ SENATE REPORT 1st Session No. 94-137 SECOND SUPPLEMENTAL APPROPRIATIONS BILL, 1975 MAY 14 (legislative day, APRIL 21), 1975.-Ordered to be printed Mr. McCLELLAN, from the Committee on Appropriations, submitted the following REPORT [To accompany H.R. 5S99] The Committee on Appropriations, to which was referred the bill (H.R. 5899) making supplemental appropriations for the fiscal year ending June 30, 1975, and for other purposes. reports the same to the Senate with various amendments and presents herewith information relative to the changes recommended. INDEX TO BILL AND REPORT Page number- Bill Report Narrative summary of bill 2 Tabular summary of bill 4 Title I-General Supplementals 2 Chapter I-Agriculture 2 7 Chapter II-Defense 3 10 Chapter III-District of Columbia 4 14 Chapter IV-Housing and Urban Development-Inde- pendent Agencies 5 19 Chapter V-Interior and Related Agencies 6 24 Chapter VI-Labor. Health, Education, and Welfare 10 32 Chapter VII-Legislative Branch 18 60 Chapter VIII-Public Works 26 70 Chapter IX-State, Justice, Commerce, and Judiciary 28 80 Chapter X-Transportation 36 96 Chapter XI-Treasury, Postal Service, and General Government 40 105 Chapter XII-Claims and Judgments 43 114 Title II-Increased pay costs 44 115 Title III-General Provisions 72 (1) 9 36 with all aspects of patient care, nursing education, and expanded however, that roles of clinical specialists, nurse practitioners, and the communication tration (ADAME of research findings. The Committee notes that there have been no devastating pr. new projects started in this important area in the last two years. of the research The Committee has also provided $29,575,000 for D.C. Medical in this field. I: Facilities to complete construction of the Children's Hospital National be more effectiv Medical Center and the Concentrated Care Center at Georgetown already exists University. These funds shall remain available until expended. This is cultural proble $7,575,000 over the House allowance. This level of funding will provide and communit $21,575,000 for Children's Hospital, which, when completed, will current knowled serve as a national model. specializing in hospital research, patient harm than treatment. and service in units which will serve as models for research will serve as health delivery systems to children. The Committee is pleased that The Committee Children's Hospital has appointed a person to have specific responsibil- for that agency ity for its new day-care center. In light of the Committee's continued The Commit: strong support of the hospital in all its efforts, the Committee requests program. A the hospital administration to report back within 90 days of enactment Current estima of this bill on the status of the day-care center. to fund a full The Concentrated Care Center is a model for renovation of 7,000 sites. Given Foll hospitals throughout the Nation. The concentration of modules of enrolled in concentrated high-cost services in the acute facility could effect reduction in substantial savings in the Nation's expenditures for hospital renova- with respect tions and patient care. would indicate Further, the Secretary of HEW is directed to provide the Com- funds, an estimar mittee with a report on the availability of loan funds to complete 1975-76. these projects. OFFICE OF EDUCATION 1975 presently 1975 proposed ELEMENTARY AND SECONDARY EDUCATION House allowanc Committee 1975 presently available $2,255,675,000 1975 proposed supplemental The Commit House allowance 4,000,000 000 over the II Committee recommendation 9,000,000 quest. The Congr The Committee concurs with the House in providing $4,000,000 for item pending the alcohol and drug abuse education activities. The Congress deferred basic law. Failing consideration of this item in the regular 1975 bill, pending enactment gency School Aid of authorizing legislation. Authorized by the Alcohol and Drug Abuse The Committee Education Act, this program is designed to help schools and com- directs that the munities respond to drug and alcohol abuse problems among school restoring this children. Emphasis is placed on assisting local communities, school Committee is no: districts, and State agencies in dealing with these problems. The lessened to any amount recommended includes: $2,040,000 to support five regional commitment to training resource centers; $1,410,000 for training 200 school-based fair and equitabi nities. such as alcohol and drug abuse prevention teams; $400.000 for six preservice assistance under demonstration projects: and $150,000 for technical assistance. that sufficient The Committee is deeply concerned over the serious and continuing these urgent growth in alcohol and drug abuse among this nation's youth. Recent estimates indicate that the proportion of youth who drink has The Emergency increased to the point where nearly all children and teenagers are non-profit school involved. With respect to drugs. it is expected that the abuse of aiding school opiates and nonopiates alike will remain a national health problem, with evidence of their use increasing in some areas of the country. The minority group funds in the problem is further intensified when added to the social and economic costs related to the abuse of these substances. The Committee believes, the States on (aged 5 10 P.10.41 94TH CONGRESS HOUSE OF REPRESENTATIVES REPORT 1st Session No. 94-239 MAKING SUPPLEMENTAL APPROPRIATIONS, FISCAL YEAR 1975 MAY 21, 1975.-Ordered to be printed Mr. MAHON, from the committee of conference, submitted the following CONFERENCE REPORT [To accompany H.R. 5899] The committee of conference on the disagreeing votes of the two Houses on the amendments of the Senate to the bill (H.R. 5899) "making supplemental appropriations for the fiscal year ending June 30, 1975, and for other purposes," having met. after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows: That the Senate recede from its amendments numbered 33, 41. 57. 61. 94, 122, and 172. That the House recede from its disagreement to the amendments of the Senate numbered 1. 2. 4.5. 6.8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 21. 22, 34, 37, 38. 39. 50. 52. 54. 55. 65, 79. SO. S2. S4. S5. 86. 87. SP. 90. 101. 102, 109, 110. 111. 112. 113. 114. 115. 116. 118. 110. 120, 123. 124. 125. 126. 127, 135, 136. 137, 138. 139. 140. 145. 146. 147. 148. 149. 150, 151. 152. 133. 154, 155, 156. 157. 158. 159. 160. 161, 162, 163, 10+, 165, 166, 167, 105, 169, and 170, and agree to the same. Amendment numbered 7: state That the House recede from its disagreement to the amendment of the Senate numbered 7. and agree to the same with an amendment. as follows: In lieu of the sum named in said amendment insert $5,000,000; and the Senate agree to the same. Amendment numbered 26: That the House recede from its disagreement to the amendment of the Senate numbered 26, and agree to the same with an amenciment. as follows: In lieu of the sum named by said amendment insert $200,000; and the Senate agree to the same. Amendment numbered 25: That the House recede from its disagreement to the amendment of the Senate numbered 25, and agree to the same with an amendment. as follows: In lieu of the sum proposed by said amendment insert $6,800,000: and the Senate agree to the same. 38-006 0 11 10 HEALTH RESOURCES ADMINISTRATION Amen tion" Amendment No. 40: Reported in technical disagreement. The man- $7,500 agers on the part of the House will offer a motion to recede and concur 000,00 in the Senate amendment with an amendment which will appropriate Amen $118,900,000 for "Health resources" instead of $127,600,000 as proposed relating by the House and $126.475,000 as proposed by the Senate. and will ear- Amen mark $10,000.000 for carrying out section 3 of the National Health agers Planning and Resources Development Act of 1974. as proposed by the in the Senate, instead of $18,700,000 as proposed bv the House. The funds for in the carrying out section 3 shall remain available until December 31. 1975. 93-305) as proposed by the House. The managers on the part of the Senate will Higher move to concur in the amendment of the House to the amendment of Higher the Senate. June Amendment No. 41: Earmarks $22,000.000 of the appropriation for "Health resources" for carrying out section 305 (b) (3) of the Public Health Service Act. as proposed by the House, instead of $29,575,000 Amer as proposed by the Senate. of the R Amer OFFICE OF EDUCATION services the Hous Amendment No. 42: Appropriates $6,500,000 for "Elementary and Amer secondary education" instead of $4,000.000 as proposed by the House agers and $9,000,000 as proposed by the Senate. The increase over the cur in amount proposed by the House is for Part B of the Head Start-Follow availa Through Act. (93rd C The intent of the conferees is that. with respect to the entering class. per child costs and enrollment levels in all ongoing Follow Through projects be maintained at levels provided in previous years. Amendments Nos. 43 through +7: Reported in technical disagree- ment. The managers on the part of the House will offer motions to security recede and concur in the amendments of the Senate with amendments The which will earmark $185,588,000 for section 705 instead of $204,131.000 tions as proposed by the Senate. $11.309.000 for section 708(a) instead of ment $12,447,000 as proposed by the Senate. $9,052.000 for section 708(c) plicated instead of $9,958.000 as proposed by the Senate, $6,794,000 for section supplement 711 instead of $7,468,000 as proposed by the Senate. and $2.257.000 for section, 713 instead of $2,489,000 as proposed bv the Senate. The managers on the part of the Senate will move to recede and concur in the amendments of the House to the amendments of the Amer Senate. opment Amendment No. 48: Appropriates $215,000.000 for "Emergency 000.0 school aid" instead of $125,000,000 as proposed by the House and The by the $236,493,000 as proposed by the Senate. Heads: Amendment No. to: Reported in technical disagreement. The man- ices for agers on the part of the House will offer a motion to recede and concur in the amendment of the Senate with an amendment extending the Amer availability of funds in the bill for "Emergency school aid" until agers cur in September 30. 1975. instead of August 15. 1975, as proposed by the that ST. Senate. shall The managers on the part of the Senate will move to concur in the 000 amendment of the House to the amendment of the Senate. The Amendment No. 50: Appropriates $250,000 for "Education for the amend: handicapped" as proposed by the Senate. 12 White House. July 91,1975 Dr mars: File - Genegetown and D.C. children Assistals /. Paul D'Neill hassent the n iemo to Tres Ford - sointing out that the project: Children's 4 Serrgetown -DC. Hansuman, Phila Water Works - Dertuth are not budget requests I. mr. O'Neill also suggested we notify mr. Inax Friedensdoof. Paul senla copy afout letter to Pres. tord to mr as her Indersday was unable to see us. mo Freedersdof in out behalf Hogefully you would talk to Byron 655-4411 Collin, (Gtn) John Thank 333-4000 Shon + ouidrance Mate Ely GEORGETOWN UNIVERSITY WASHINGTON, D. C. 20007 OFFICE OF THE PRESIDENT SPECIAL ASSISTANT FOR FEDERAL RELATIONS July 21, 1975 The President The White House Washington D.C. 20500 Dear Mr. President: This is a request for the immediate release of $22,000,000 contain- ed in the Second Supplemental Appropriations for 1975, P.L. 94-32, for two national experimental hospital construction projects. The first project is Children's Hospital National Medical Center in the District of Columbia. This facility, which is under construction (cf. attached photograph), will provide a combination of specialized care with research components for children from all over the United States and, in- deed, the world. This projectwas started in 1966 and is designated as an experimental research facility in this particular field through a peer review process. The need for these additional funds is extremely acute. The con- struction has been on a phased basis, which was approved by GAO. The total cost of the facility is $70,457,000. It is scheduled for dedication on July 4, 1976. We hope you will accept our invitation to attend the ceremony. The federal grant participation is two-thirds, the remaining one- third coming from the hospital fund drive and loans in accordance with the enabling legislation. The particular time crunch lies in this: The funds in the Second Supplemental were designed to meet a construction phased bidding process. We have over $10,000,000 of construction bids which were supposed to have been acted upon by July 11, 1975. A portion of the funds are from the $16,000,000 provided in the Second Supplemental Appropriation. The first phase of the project, at a cost of $54,000,000, is nearly com- plete. The final phase, with bids ready to be awarded, awaits your decision. Georgetown University's Concentrated Care Center has a ten year history. It was approved by peer review both in concept and design as a national experimental project. This project is also on a phased construc- tion basis similar to Children's Hospital. Its purpose is to provide a model of health care that is replicable by the 7000 hospitals throughout the country. This model differentiates between two kinds of hospital care - the patient who needs constant care and attention by physicians and nurses, which is concentrated care, and the patient who needs occasional daily physician and nurse treatment. The purpose of this national experimental hospital is to demonstrate how these kinds of care can be given and cost accounted so that patients will be charged a total lower per diem costs. The $6,000,000 provided in the Second Supplemental Appropriation will enable the construction of the second phase of this project, which is to provide for special laboratories and treatment spaces. These funds are immediately needed so that the construction schedule of the second phase will be completed to make the first phase function, (cf. attach- ed photograph). The funds for this $35,000,000 project are made up of two-thirds federal grant and one-third from Georgetown University re- sources of gifts and loans. We believe that the federal investment in these projects will be repaid many times by the innovative services and cost savings for child and adult patients. We point out that these funds are in the fiscal 1975 appropria- tion and are not within the budget limit for fiscal 1976. We thank you for considering our plea on behalf of the people of the United States whom our institutions serve directly and in affil- iation with the National Institutes of Health. We pray for you and that you will, in your wisdom, allow our projects to continue. TByon Collins S.J. Sincerely yours, John H Sharan John H. Sharon Special Assistant to the President Chairman, Children's Hospital Georgetown University National Medical Center NATIONAL ARCHIVES AND RECORDS ADMINISTRATION Presidential Libraries Transfer/Disposal Sheet ITEM ID 00115 DESCRIPTION OF ITEM MOVED One black and white 8" X 10" black and white photograph of the Concentrated Care Center at Georgetown University and one color 8" X 10" photograph of the Children's Hospital National Medical Center. COLLECTION/SERIES/FOLDER ID 016400086 COLLECTION TITLE Theodore C. Marrs Files BOX NUMBER 9 FOLDER TITLE Health (2)-(3) ACCESSION NUMBER 70-NLF-221 MOVEMENT DATE 10/19/1989 TYPE OF MATERIAL Photographs NEW LOCATION Audiovisual Collection ARCHIVIST'S William H. McNitt 189 VAVAV CONCENTRATED CARE CENTER Georgetown University Photo No. 49, March 25, 1975 Architect-Metcalf - and Assoc. General View-Rear. Contractor-The George Hyman Co. February 26, 1975 GEORGETOWN UNIVERSITY HOSPITAL CONCENTRATED CARE CENTER CONSTRUCTION BUDGET PHASE I PHASE II TOTAL Budget Budget Budget Construction including util- 1/ ities and fixed equipment $17,761,339 $ 9,958,661 $27,520,000 A/E Fees 1,860,416 609,584 2,470,000 Inspection & Supervision 160,000 125,000 285,000 Consultant Fees 228,485 46,515 275,000 Miscellaneous, fees, permits, etc. 431,403 108,597 540,000 Research coordination & development 378,000 32,000 410,000 Moveable Equipment 2,180,357 1,119,643 3,300,000 TOTAL $23,000,000 $12,000,000 $35,000,000 1/ Includes $2.5 million for approximately 65% of a $4 million parking facility at the site. The rest is for automated, clinical laboratories, treatment and office space. CHILDREN'S NATIONAL MEDICAL CENTER COSTS: Construction $46,214,248 $8,880,000 $55,094,248 Equipment 267,000 6,610,685 6,877,685 Désign, Consultants and Administration 5,025,000 962,000 5,987,000 Contingency 952,685 1,547,415 2,500,100 TOTAL $52,459,933 $18,000,000 $70,459,933 March 10, 1975 1975 SUPPLEMENTAL APPROPRIATIONS GRANT REQUEST - CONCENTRATED CARE CENTER $8,000,000, CHILDREN'S HOSPITAL NATIONAL MEDICAL CENTER $21,575,000. Concentrated Care Center Experimental Project, Total Cost Estimate $35,000,000 Method of Funding Phase I - Cost $23,000,000 Grant HEW Appropriations 1969-70 $ 6,900,000 Grant P.L. 92-80 8,300,000 Loan P.L. 92-80 6,700,000 Private Resources 1,100,000 $23,000,000 Phase II - Cost $12,000,000 1975 Supplemental Appropriation Grant Request 8,000,000 From Existing Federal Loan Programs 4,000,000 12,000,000 $35,000,000 Summary of Financing of Phases I and II Federal Grants Phases I & II $23.200,000 (two-thirds) Private Resources and Loan Phases I and II 11,800,000 (one-third) Total cost of Project $35,000,000 Children's Hospital National Medical Center Experimental Project Total Cost Estimate $70,459,933 Method of Funding Phase I - Cost $44,884,933 Grant - P.L. 90-457 $13,399,574 Grant - P.L. 93-50 12,000,000 Federal Loan - P.L. 90-457 13,399,579 Fund Drive 6,085,780 $44,884,933 Phase II - Cost $25,575,000 Grant Request in HEW Supplemental 1975 21,575,000 Federal Loan (from existing programs) 4,000,000 25,575,000 $70,459,933 Financial Summary Grants Phases I and II $46,974,579 (two-thirds) Private Resources and loans Phases I and II 23,485,354 (one-third) $70,459,933 acr Jill AMERICAN COLLEGE OF RADIOLOGY: 20 NORTH WACKER DRIVE CHICAGO, ILLINOIS 60606 (312) 236-4983 WASHINGTON OFFICE: 6900 WISCONSIN AVENUE CHEVY CHASE, MARYLAND 20015 (301) 654-6900 August 27, 1975 Guy Newell, M. D. Deputy Director GERALD FORD LIBRARY National Cancer Institute National Institutes of Health Bethesda, Maryland 20014 Dear Doctor Newell: Thank you very much for the opportunity of sitting down and discussing with you the many ramifications of radiology's involvement in the current and future status of NCI. Your guidance and wisdom is greatly valued, for it aids in the eventual opening of doors with chiefs of various divisions. This "entrance" is extremely important and necessary for the accomplishment of future activities. Your advice in handling the Breast Conference grant is most appreciated. We have, with all the grace we can, withdrawn the application. There are many opportunities of involvement between Cancer Control and the College which can enhance the NCI, as well as, the private sector. Therefore, the grant will not be pursued any further. Your wisdom and forsight demonstrates your genuine interested in doing something for the American patient for whom we all serve. I look forward to every future meeting we have and hope that there will be many. Please do not hesitate to call me to make any arrangements, as I also will be calling you. With the kindest of personal regards. Sincerely, Bin William K. Melton Deputy Executive Director WKM:d acr 200 AMERICAN COLLEGE OF RADIOLOGY 28 AUG AUG2 1975 6900 WISCONSIN AVENUE - MD. 629649 CHEVY CHASE, MARYLAND 20015 Theodore C. Marrs Special Assistant to the President The White House Washington, D.C. 20500 THE WHITE HOUSE Jempil GL WASHINGTON September 3, 1975 MEMORANDUM FOR: FROM: JACK The President saw and appreciated together TED Janes with your memo, in reference to Hospital the concentrated Care Center at Georgetown. FORD LIBRARY & GERALD MEMORANDUM DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE Public Health Service Shiprock Service Unit TO DATE: 9-4-75 : All Physicians FROM : FORD i LIBRARY DERALD SUD-Shiprock Service Unit SUBJECT: Nursing Shortage Due to the acute shortage of nursing personnel, we will not admit any elective patients for the coming two weeks. Luverne A. Husen, M.D. Service Unit Director Shiprock Service Unit 14 Revell Street Annapolis, Maryland 21401 November 20, 1975 Sylvia Rhodes Acting Chief of Nursing Indian Health Service Dear Ms. Rhodes, I am in receipt of your letter of November 4, 1975, in which you again refuse to refer my application for employment to Shiprock Hospital. Since you still fail to give any reasons for this refusal I must necessarily consider your action prejudicial, discriminatory and a violation of my civil rights. You may not be aware that in my previous employment at Shiprock I received excellent ratings from Mrs. Beverly Smith, Director of Nursing and Dr. Luvern Husen, Service Unit Director. A copy of these ratings is available if you desire them. Further, as a result of my ability and professionalism I was promoted to Head Nurse, Pediatric Ward, at Shiprock. I would also like to point out that Dr.. Emery Johnson, Director, Indian Health Service, wrote to Congressman Edward Mezvinsky on October 28, 1975, saying that the Indian Health Service is in need of good registered nurses and that I could reapply for employment without prejudice. You may not be aware that the Service Unit Director, as recently as September, found it necessary to publish a memo addressed to all physicians in Shiprock Hospital concerning the acute shortage of nursing personnel at the hospital. A copy of that memo is attached for your information. My application for employment at Shiprock Hospital is herewith resubmitted for the third time. Sincerely yours, Sandra I Kramer Sandra J. Kramer file THE WHITE HOUSE WASHINGTON September 12, 19 LIBRARY GERNED R. FORD MEMORANDUM FOR RON KIENLEN FROM: JUDY JOHNSTON SUBJECT: Emergency Medical Services Week Proclamation Attached is a request from the American Association of Trauma Specialists urging the President to issue a proclamation designating the week of November 3 as Emergency Medical Services Week. The proclamation was issued last year. Could you please give me your recommendations on issuing such a proclamation. CC: Sarah Massengale Ted Marrs June American Association EMERGENCY of MEDICAL SERVICES Trauma Specialists 180 N. LaSalle St. Suite 2201 Chicago, ILLinois 60601 utive Director (312) September 9, 1975 bert G Rich rthbrook. Illinois The Honorable Gerald R. Ford President of the United States The White House ident Pro Tem 1600 Pennsylvania Avenue N. W. chael E Hochfelder Washington, D. C. 20500 is Plaines. Illinois Dear Mr. President, cation Director The concern of the Congress in passing the Emergency Medical sterE Ascher Services Systems Act of 1973 and the efforts of the Departments of cago. Illinois Transportation and Health, Education, & Welfare have done much to improve the level of emergency medical care in these United States. On November 5, 1974 you kindly issued a proclamation designating bership Director the week of November 3, 1974 as Emergency Medical Services Week. We 10 S Tanenbaum R. Phwould like once again to prevail upon your good services and ask that Okie. Illinois you issue a similar proclamation for the week of November 2, 1975, We have asked the co-operation of the Governors of all fifty states and the Virgin Islands, and the mayors of the fifty largest cities eral Counsel to issue similar proclamations. Several have agreed to do so, and we would be pleased to have this become an annual event. R Denkewalter 190. Illinois We have reviewed the proclamation you issued in 1974 and ask that you include an additional paragraph similar to the following: "As a tribute to those engaged in Emergency Medical Services, and to inform our citizens of their contributions to the nation's health and welfare, I, Gerald R. Ford, President of the United States of America, therefore proclaim the week of November 2, 1975 as Emergency Medical Services Week." Your kind considerations in the past have given much needed support for our profession. We would be pleased to participate or co-operate in any ceremonies honoring our profession. We would also appreciate any credit given to our Association in connection with the issuance of a proclamation, and would like to receive copies of the proclamation and of any photographs taken at ceremonies in connection with Emergency Medical Services Week. Sincerely, Michael E. Hochrelder President Tem meh/bs September 22, 1975 FORD is 076830 LIBRARY Dear Pete: Please ask your medical people to review and see if this has any potential exhibit value. Thank you. Sincerely, Theodore C. Marrs Special Assistant to the President General Duwart L. Crow Associate Deputy Administrator NASA Headquarters 400 Maryland Avenue, sw. Washington, D.C. 20546 Enclosure TCM:pft JACKSON HOSPITAL AND CLINIC INCORPORATED 1235 FOREST AVENUE MONTGOMERY, ALABAMA 36106 DOUGLAS GOODE, ADMINISTRATOR August 1, 1975 Dr. Ted Marrs QERALD FORD GBRARD Special Assistant to the President on Human Resources The White House Washington 25, D. C. Dear Ted, Please note from the enclosures, (1) A study by Dr. Burt Edelson of Consat- a suggested outline of an international Tele-Health Communications network with projected costs for a year's operation linking Auburn and the Medical University of South Carolina with Costa Rica, Iran, Egypt, South Africa and Queen Charlotte Islands, B.C. Canada. (2) a letter endorsing our project by the Secretary-General of Habitat (United Nations Conference on Human Settlements, Vancouver 1976). Vince Moseley reports that the Lister Hill Center of the National Library of Medicine in Bethesda has also endorsed our project and suggests that Dr. Kenneth Endicott, director of the Health Resources Administration has funds available that might be applied to such an undertaking. A Dr. Herbert Tahl is the liason person between the Lister Hill group and Dr. Ken Endicott's Health Resources Administration. Since you manage so well the implantation of projects, I hope that the fore- going information may be useful in bringing together leaders in these different agencies, that might resolve our funding problems. We look upon the Habitat Conference on Human Settlements of the United Nations as an ideal opportunity to initiate a permanent operational Tele-Health network. before 5,000 delegates from the worldwide membership of the United Nations. The Consat budget is slightly less than $500,000, noting that some of the costs are necessarily estimates at this time. The cost estimates on south stations at the various sites have not been included, nor has the cost of peripheral communi- cations equipment and medical instrumentation been estimated. A reasonable guessti- mate of $250,000 per installation to include personnel for a year's operation is probably conservative. In order to establish a definitive budget, our preliminary proposal requested $50,000 for a feasability study. There is some urgency now to take action if we are to complete the study in time to marshal the forces necessary to have our project ready for the May 1976 deadline of the Vancouver Habitat Conference. Please call me for any additional information. All or any of us will be available to meet with you whenever necessary. Respectfully yours, Hugh MacGuire, this M.D. Habitat United Nations Conference on Human Settlements Conférence des Nations Unies sur les établissements humains Vancouver 1976 S0-147/1 Enrique Peñalosa Secretary-General/Secrétaire général 24 July 1975 Dear Dr. McGuire: I would like to say how extremely pleased I am at your plan for an international tele-health programme tied to the Habitat Conference. Although actual installation of the facility will be up to the host country authorities, I feel certain they will agree with me that this is an extremely useful example of international co-operation which is closely related to a central goal of the Conference. That is, to bring modern services to rural settlements, with medical care and training at the very top of the list. Budgetary restrictions as well as general policy for conference secretariats make it impossible for this organization to offer you direct financial support. However, we feel that the tele-health project closely parallels the interests of at least three UN specialized agencies --- World Health, FAO and UNESCO -- and your proposal has been sent to appropriate divisions of each. I also think the project should be worth support from private foundations and industries, and perhaps governments as well. A central goal of Habitat is to show practical examples of how problems of human settlements -- in villages as well as major cities -- can be solved through new ideas and techniques. But more than that, we feel that successful "pilot projects" must be followed by broad and permanent implementation. As I have heard of pilot projects before on satellite health transmissions, I hope you are including in your project provisions for the mounting of a permanent system. Yours sincerely Dr. Hugh McGuire International Tele-Health Planning Group 112 Coliseum Boulevard Montgomery, Alabama 36109 485 Lexington Avenue, New York, N.Y. 10017 (212) 754-1234 Cable: UNATIONS Telex: 236185 COMMUNICATIONS SATELLITE CORPORATION B.I. EDELSON Director Comsat Laboratories July 10, 1975 Dr. Chester C. Carroll Vice President for Research Auburn University Auburn, Alabama 36830 Dear Dr. Carroll: The attached study describes an international communications network for medical and health services. that might be established to serve five countries using voice grade circuits in the INTELSAT system. We have tried to give an example of how this might be accomplished using a reasonable mix of satellite services and terrestrial extensions. We have also attempted to estimate the operating cost for establishing a system, plus two options: one for the use of a small earth terminal, and another for possible provision of television services. I hope you find this study of interest. Please understand that the attached study is for "planning purposes only." It does not in any way represent a commitment on the part of the Communications Satellite Corporation to provide the services described. The cost estimates are based upon our knowledge of U.S. charges. Foreign charges which are not well established will be different and probably considerably higher. It was very nice meeting with you. Please give our regards to your colleagues. Sincerely, BlEdelian B. I. Edelson BlEdelson Attachment cc: W. M. McCord, M.D. V. Moseley, M.D. H. C. MacGuire, M.D. COMSAT LABORATORIES BOX 115 CLARKSBURG, MD. 20734 TELEPHONE 301-428-4422 INTERNATIONAL MEDICAL AND HEALTH SERVICES NETWORK Prepared for Medical University of South Carolina by Communications Satellite Corporation July 1975 INTERNATIONAL MEDICAL AND HEALTH SERVICES NETWORK I. INTRODUCTION THis plan was prepared by COMSAT as a result of a re- quest by the Medical University of South Carolina for information on the feasibility of an international communications network via satellite for the transfer and exchange of information on medicine and health care delivery. The plan describes a baseline network which utilizes the space segment of INTELSAT plus existing earth stations in several countries connected to medical centers by terrestrial interconnec- tions. The baseline network provides voice-band communications. In addition, the plan includes some technical and cost information on two options: the use of small, customer-premises earth stations, and the provision of television service. II. BACKGROUND Previous experience has indicated that useful medical services can be provided with voice-grade circuits, a good example being the COMSAT-HOPE experiment held in 1973. In that case, a small terminal using a 2.4 meter (8-ft) reflector was placed on the hospital ship HOPE, which was anchored in the port of Maceio, Brazil. The object of this experiment was to evaluate the use of the sat- ellite link in support of a complete teaching and operating medi- cal facility located in a remote area and equipped with only a low-cost unsophisticated earth terminal. The satellite link be- tween the ship and project HOPE headquarters is shown in Figure 1. The three voice grade circuits were used to transmit voice, full-duplex teletype, facsimile, data, and slow-scan tele- vision pictures. All of these modes were used in various combina- tions for the individual experiments and demonstrations with excellent results. Teletype was used in a full-duplex mode to support the administrative needs of the hospital, which were supplied from HOPE headquarters. The voice link was used to permit the physi- cians serving on the HOPE to consult with colleagues and experts in the U.S. Facsimile was especially useful for transmitting med- ical information and sketches of dental restoration work, for instance. Slow-scan television was used in a variety of ways. The system allowed a picture to be "frozen," i.e., put on a local mem- ory, and then transmitted to the distant television monitor in 30 seconds. A "live" scan of a stationary subject could be trans- mitted in 60 seconds to provide a picture with higher resolution on the receive monitor. During the five months of the experiment a number of in- teresting demonstrations were made to evaluate the combined modes 2 INTELSAT IV BRAZILIAN HOSPITAL Figure 1. 1 LOCAL TELEPHONE LINE PROJECT HOPE HQ WASH. D.C. 3 HOPE LABS 'RET' COMPUTER ANALYSIS EKG TELEPHONE TELETYPE TELSERV EKG SLOW-SCAN TV FACSIMILE RCA SLOW- XEROX 400 TELETYPE TELECOPIER SCAN TV TELECOPIER P15 12/74 of communications in support of a remote medical facility. Medical consultations were held by sending the patient's medical history and medication and treatment records in advance by teletype and facsimile. The condition of the patient was monitored during the consultation session either by having the patient present, or by taking polaroid pictures of the patient and sending these via slow- scan television. Other information transmitted included X-rays and a Pitood sample on a microscope slide. The latter was accomplished by Toplacing the microscope eyepiece with the television camera. A lecture on tropical diseases was delivered via satel- His DY a Brazilian specialist aboard the HOPE to physicians at the Mayo clinic in Rochester, Minnesota. For this lecture, 35-mm coller slides were sent by mail to Rochester to be projected on cue from the lecturer in Brazil. Otherwise, the lecture was live, and 20way voice was available for questions. This mode of operation was found to be very effective. It should be noted that all of the above was accomplished Dyy. using only three voice channels. As will be shown later, the cost of satellite service depends on the channel capacity required, and voice channels require signficantly less satellite resources Than full-quality television. However, the carriers for the exper- -ment used about 25 percent of the available capacity of one global-beam transponder of the INTELSAT satellite due to the small size of the HOPE antenna. An INTELSAT IV transponder has an annual rental cost of about $3 million. 4 III. A PROPOSED BASELINE MEDICAL NETWORK The baseline network is designed to provide inter-con- nections between the Medical University of South Carolina and five remote hospitals. This network, to consist of leased voice circuits, could provide voice, analog and digital data (24-9600 bps) , facsimile, and slow-scan television to be used for the ex- change of medical information, diagnosis, and evaluation. The center of the network would be the Medical University of South Carolina, which would be connected to the INTELSAT system (Etam, West Virginia) via land line. Satellite communications could be provided to the following locations: a. a hospital in Costa Rica via the Nicaraguan earth station, b. a hospital in South Africa via their earth station near Pretoria, C. a hospital in Iran via their earth station in Asadabad, and d. a hospital in Egypt via their non-standard earth station* near Cairo. In addition, terrestrial interconnections could be provided to the following: a. a hospital on Queen Charlotte Island, Canada; and b. other universities and medical centers in the U.S. Egypt has announced plans to build a standard earth station in 1976. 5 Figure 2 indicates the network which has been envisioned. The communications capability required to support this network will be uncertain until the system begins to function effectively. The network capability is indicated in Table 1. Table 1. Network Capability Link Capability From the Medical University 1 duplex voice circuit to of South Carolina each of the five hospitals From the individual hospitals 1 duplex voice circuit to the Medical University of South Carolina A. COSTS The costs associated with this communications network have been estimated on the basis of available information and should be considered to be at best an approximation. The costs indicated here are only those associated with the long-haul commu- nications services and exclude termination costs (probably minor) and local terminal equipment costs (probably significant). 1. U.S. Extension Costs For these costs an AT&T rate of $2.63/mile/month or $31.56/mile/year was used. 6 AN INTERNATIONAL COMMUNICATION NETWORK FOR THE MEDICAL UNIVERSITY OF SOUTH CAROLINA - using THE INTELSAT SYSTEM and LANDLINES QUEEN CHARLOTTE HOSPITAL CONNECTED TO MEDICAL UNIVERSITY or SOUTH CAROLINA Figure 2. 2 MEDICAL UNIVERSITY or SOUTS CAROLINA HOSPITAL DI TRAM HOSPITAL IN BGYPT t COSTA RICA HOSPITAL CONNECTED TO BICARAGUAN SARTS STATION SOSPITAL IV SOUTS AFRICA 2. Foreign Extension Costs Since exact costs will vary from country to country, the U.S. costs cited above have been used throughout for foreign estimates. 3. U.S. Satellite Service A current COMSAT tariff applicable to common carriers in the Atlantic area, $34,200 per half-circuit per year, has been used. 4. Foreign Satellite Service The costs of foreign satellite service are generally dif- ferent from (higher than) the costs of U.S. service. However, for estimation purposes the U.S. costs have been used throughout. The costs charged by INTELSAT for the space segment are a part of the satellite service costs. These space segment costs are presently $18,000 per year. The remainder of the costs are earth station and international common carrier costs, which are $16,200 for the U.S., but may vary for other countries. Table 2 is an estimate of the annual communications costs of a baseline system. A single time-shared circuit between South Carolina and the other satellite-linked countries would re- duce the U.S. satellite and extension costs by $154,650, and re- sult in a network total of $256,150. 8 Table 2. Annual Communications Costs for a Baseline System Paths from the Medical University Annual Leased of South Carolina (to and from) Costs A hospital in Iran (near Teheran) Iranian satellite link* $34,200 Iranian extension to Teheran (300 miles) 9,500 U.S. satellite link 34,200 U.S. extension (550 miles) 17,350 $95,250 A hospital in South Africa (near Pretoria) South African satellite link* $34,200 South African extension (50 miles) 1,600 U.S. satellite link 34,200 U.S. extension 17,350 $87,350 A hospital in Egypt (near Cairo) Egyptian satellite link* $34,200 Egyptian extension (100 miles) 3,150 U.S. satellite link 34,200 U.S. extension 17,350 $88,900 A hospital in Costa Rica Nicaraguan satellite link* $34,200 Costa Rican extension (225 miles) 7,100 U.S. satellite link 34,200 U.S. extension 17,350 $92,850 A hospital on Queen Charlotte Island U.S. land lines to Vancouver using special $27,500 "lo" rate (2,575 miles across the U.S.) Canadian land lines 18,950 $46,450 TOTAL: $410,800 *The term "link" indicates the half satellite circuit end termi- nating in Iran or other country. A current COMSAT tariff has been used to estimate rates. Foreign rates will differ, and may be considerably higher. 9 IV. SMALL TERMINAL FOR MEDICAL COMMUNICATIONS A. OPTION 1 A small terminal for use with an INTELSAT IV satellite can be placed virtually anywhere on the user's premises. Such a terminal in the U.S. is subject to FCC regulations regarding oper- ation and possibly interference considerations. Similar internal governmental regulations will apply to earth stations located in other countries. However, in the past clearances and permits have been obtained in virtually all cases. The standard earth stations within the INTELSAT system are required to have a figure of merit of G/T = 41 dB/K. Such a station would have an antenna with a diameter between 85 and 100 ft. Smaller antennas with a figure of merit less than 41 dB/K are permitted to operate within the INTELSAT system; however, the charges for the space segment, i.e., the use of the satellite, incur a penalty for the smaller G/T figure. A small terminal to operate in the INTELSAT system might have a G/T of 31 dB/K. Such a terminal will have an antenna with a diameter of 32 ft and a parametric amplifier with a noise temper- ature of 55 K. The following is a description and cost estimate for this type of terminal, which is assumed to be installed at the Medical University of South Carolina. The station equipment and its associated cost are shown in Table 3. The price of the antenna includes a step track system 10 that automatically tracks the satellite. A licensed operator must be in attendance to operate the station. Table 3. Small Terminal Cost Estimate 10-m-diameter antenna (RSI) $90,000 Receiver (55-K paramp) 25,000 50-W transmitter and driver 12,000 Up/down-conversion, cabling 10,000 FM modulator/demodulator (1 channel) 2,000 Station test equipment 10,000 Baseband interface including echo suppressors 2,000 Frequency clearance, site preparation, installation of power, and operating space in a suitable building to be sup- plied by the builder 6,000 TOTAL: $157,000 The station described in Table 3 can operate with a standard INTELSAT station or with one or more similar stations in a small terminal network. The space segment rate adjustment factor for such a small station is 2.5; i.e., INTELSAT's charges are 2.5 times the rate applicable to a standard station. To develop some tentative cost estimates for a system with one small earth terminal located, for example, at the Medical University of South Carolina, the following cost considerations should be included. Assume the amortization of the earth station cost of Table 2 over 5 years at 6-percent interest. This would yield a 11 yearly earth station cost of about $37,000. For a station to han- dle more than one channel, a multiplex unit (MUX) would be required. The cost of this unit is estimated as $2,500 per channel per year. An accurate estimate of the cost of the space segment for a small station is not possible. However, on the basis of the INTELSAT space segment charge of $18,000 for a standard station link times the 2.5 small terminal penalty, the small station space segment cost per link is $45,000 per year. With these estimates, the cost of option 1 using one small terminal in the U.S. is $427,600, as shown in Table 4. This cost does not include the operation of the small station. In addition, it should be noted that the above network would have one circuit between the Medical University of South Carolina and each of four other hospitals, but would not have circuits linking the hospitals to each other. B. Option 2 If television is desired, the costs increase considerably. If it is assumed that the small terminal has a television transmit and receive capability, the additional earth station costs listed in Table 5 will be applicable. 12 Table 4. Annual Costs of Option 1, One Small Terminal Paths from the Medical University Annual Leased of South Carolina (to and from) Costs A hospital in Iran Iranian satellite link $34,200 Iranian extension 9,500 U.S. satellite link 47,500 $90,200 A hospital in South Africa South African satellite link $34,200 South African extension 1,600 U.S. satellite link 47,500 $82,300 A hospital in Costa Rica Costa Rican satellite link $34,200 Costa Rican extension 7,100 U.S. satellite link 47,500 $87,800 A hospital in Egypt Egyptian satellite link $34,200 Egyptian extension 3,100 U.S. satellite link 47,500 $83,800 Small earth station in North Carolina $37,000 A hospital on Queen Charlotte Island U.S. land lines $27,500 Canadian land lines 19,000 $46,500 TOTAL: $427,600 13 Table 5. Additional Costs of Small Terminal for Option 2, Television High-power transmitter $60,000 TV picture up-link equipment 52,000 TV picture down-link equipment 52,000 Miscellaneous waveguide parts and cooling 6,000 Transmitter shelter with air conditioning 6,000 TOTAL: $176,000 The television studio must be within a relatively short distance of the earth station for cable connection; otherwise, a terrestrial microwave link must be included in the station. Power requirements for the full TV transmit station are 3 kW. The re- sulting TV picture quality is about 49-dB S/N, which is quite good, but not of standard broadcast quality. The television link would occupy almost the entire trans- ponder in an INTELSAT satellite so that the space segment charges would increase accordingly. As mentioned earlier, an INTELSAT IV transponder has an annual leased cost of $3 million. The cost estimates for the television channel for the small terminal are given here primarily to obtain an indication of their magnitude. The number of stations with television capability and network arrangements would have to be considered in some de- tail if this mode of transmission were desired. 14 V. SUMMARY A proposed baseline network with two options has been presented for planning purposes. A 5-station satellite network has been described, with one station (Queen Charlotte Island) con- nected via terrestrial lines. This network should provide an es- timate of the basic costs associated with the establishment of a communications system for providing international health care and tele-medicine service. Since there are no existing international tele-medicine networks available for comparison, care should be exercised in extrapolating from the cost estimates proposed in this study to actual operational networking costs. 15 October 6, 1975 FORD is LIBRARY 071835 Dear Dr. Toomey: It was a pleasure to talk with you and I shall look forward to seeing you when you are next in this area. We are sorry the President could not go to Boston for the meeting. As we discussed, two proclamations are enclosed. Thank you for your thoughtful consideration. Sincerely, Theodore C. Marrs Special Assistant to the President Edward G. Toomay, M.D. Concord Medical Center Old Road to Nine Acre Corner Concord, Massachusetts 01742 Enclosure pft October 6, 1975 Dear Dr. Toomey: It was a pleasure to talk with you and I shall look forward to seeing you when you are next in this area. We are sorry the President could not go to Boston for the meeting. As we discussed, two proclamations are enclosed. Thank you for your thoughtful consideration. Sincerely, Theodore C. Marrs Special Assistant to the President Edward G. Toomay, M.D. Concord Medical Center Old Road to Nine Acre Corner Concord, Massachusetts 01742 Enclosure pft October 6, 1975 Dear Dr. Toomey: It was a pleasure to talk with you and I shall look forward to seeing you when you are next in this area. We are sorry the President could not go to Boston for the meeting. As we discussed, two proclamations are enclosed. Thank you for your thoughtful consideration. Sincerely, Theodore C. Marrs Special Assistant to the President Edward G. Toomay, M.D. Concord Medical Center old Road to Nine Acre Corner Concord, Massachusetts 01742 Enclosure pft October 6, 1975 Dear Marge: For your information, I agree with the nice things. Sincerely, Theodore C. Marrs Special Assistant to the President Ms. Marjorie Lynch Deputy Administrator American Revolution Bicentennial Administration 2401 E Street, NW. Washington, D.C. 20276 pft 2 3 A 5 6 FORD & LIBRARY 07V839 1 2 3 W HD 008 (1437) (2-028756E275)PD 10/02/75 1437 4 5 ICS IPMRNCZ CSP 6 2062846474 TDRN SEATTLE WA 69 10-02 0237P EST 7 8 PMS DR THEODORE MARRS, SPECIAL ASSISTANT TO THE PRESIDENT, DLR 9 103 OLD EXECUTIVE OFFICE BLDG TO 11 WASHINGTON DC 12 AT THE SUGGESTION OF JACK A. MACDONALD WE ARE SENDING YOU THIS is 14 TELEGRAM TO LET YOU KNOW THAT THE MEMBERS OF THE WASHINGTON STATE 15 HEALTH FACILITIES ASSOCIATION REPRESENTING 22,000 LONG TERM CARE 16 17 BEDS IN THIS STATE ENDORSE AND SUPPORT THE NOMINATION OF MARJORIE 18 LYNCH FOR THE POSITION OF UNDERSECRETARY OF HEALTH EDUCATION AND 19 20 WELFARE. HER ADMINISTRATIVE ABILITY COMBINED WITH CONCERN FOR PEOPLE FORM 0805 PRINTED BY THE STANDARD REGISTER COMPANY, U.S.A. 21 MAKE HER AN EXCELLENT CHOICE 22 23 GEORGE A FORSYTH EXECUTIVE DIRECTOR WASHINGTON STATE HEALTH 24 FACILITIES ASSN 25 26 NNNN EVCITILIES, Jo: Marje Lynch (Ltr) MIJAAH STATE ИОТОИТНЕАМ HTYBROM A 388030 ere WAKE HER VM EXCEPTENT CHOICE ГАЙСК METEVBE* EOB HER THE for your Ok information, VEKBECHELVKA OF p dagree HEVEIH СОИСЕКИ EDOCVIION kob with VND ЬТОБГЕ BED3 IN the nice things апььо Sincerely LHE ONTIVITION OL WVBROKIE NEWTIN EVCITITIES VEROCIVIION НЕЬНЕРГИ SS 000 ГОИЗ LEEN CVBE LEFECHVM 10 FEI AON КИОМ IHVI THE TCM DE THE MVENTMCION SIVIE VI THE Ok OVCK V * NVCDOWVFD ME VBE BENDING ХОЛ IHIS AVERINGION DC 102 OFD EXECUTIVE OFFICE BrDe ьие DB LHEODONE WARRE' SECIVE VERISIVAL 10 IHE SESIDENL' Dry Key pink Cy. here IDBN BEVILLE AV ea TO-OS 05216 121 ICE cab AHD008 AV3182(1933) 10\08\12 1431 OCT 8 1975 LIBRARY BERALD R. FORD Ms. Barbara Adams Member, Eastern Pennsylvania Comprehensive Health Planning Board Technical Assistance Office Schuylkill County Court House Pottsville, Pennsylvania 17901 Dear Ms. Adams: Thank you for your letter of September 16 addressed to Dr. Theodore C. Marrs, Special Assistant to the President, in which you express your view regarding the placement of Schuylkill County with the northeastern counties making up Pennsylvania Health Service Area 3, designated by the Department as requested by Governor Shapp. The designated area was found to meet the requirements of the National Health Planning and Resources Development Act of 1974 (P.L. 93-641) as proposed. Governor Shapp's plan did alter the service areas of existing 314(b) Comprehensive Health Planning Agencies in this and other instances. However, the Department found that a public process of hearings were conducted by the Governor's designated officials in the development of the Pennsylvania health service area plan and discussions around this issue were considered. All health service areas designated have been officially announced through the publication of the September 2 Federal Register notice. Please be assured that the Department will, as required by the Act, examine the experience of the future designated Health Systems Agency in serving their designated area. Should an area prove not to present a viable and reasonable service area, the Covernor or Health Systems Agency, with the Department, may consider the re- designation of the area boundaries. I trust that your valued volunteer services will be available in the structuring of an agency that would most successfully serve Page 2 - Ms. Barbare Adams Area 3 in providing sound health planning and resource development for its residents. Your continued interest will be most appreciated. IS Sincerely, Kennuh Baum for Bugene J. Rubel Acting Director ee: HRA Official ES/PHS ES/HRA Reading Board Ms. Morrill Mr. Theodore c. Marrs BHPRD:MLMORRILL:ear:10/7/75 DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE OFFICE OF THE SECRETARY EXECUTIVE SECRETARIAT TO: ASH SUBJECT: WHITE HOUSE REFERRALS ASSIGNED FOR DIRECT REPLY BE SURE TO SEND THE WHITE HOUSE A COPY OF YOUR RESPONSE WITH THE ORIGINAL INCOMING DOCUMENT. THE WHITE HOUSE HAS MADE US AWARE THAT THEY ARE NOT RECEIVING COPIES OF THIS DEPARTMENT'S DIRECT-REPLY RESPONSES TO THEIR REFERRALS. THE WHITE HOUSE WASHINGTON September 22, 1975 MEMORANDUM FOR SECRETARY, HEALTH, EDUCATION, AND WELFARE Please respond directly with copy for our files. Thank you. Therslow I, March Theodore C. Marrs Special Assistant to the President Enclosure 7509240112 TRACEBON TRAC E SEAL OF SCHUYLKILL SCHUYLKILL COUNTY AREA CODE 717' 622-5570 TECHNICAL ASSISTANCE OFFICE EXT. 301 SCHUYLKILL COUNTY COURT HOUSE OR 622-6695 POTTSVILLE, PA. 17901 * THE * PENNSYLVANIA JAMES R. KEENAN DIRECTOR September 16, 1975 Dr. Theodore C. Marrs Special Assistant to the President Executive Office Building Washington, D.C. Dear Dr. Marrs: Thank you for having sent the pictures of President Ford to members of the Railroad Task Force for Northeast Region, Inc. John Cosgrove delivered them to us last week while we were in Washington to testify on the United States Railway Association Final System Plan. Will you also accept my personal, and belated, appreciation for a most informative and delightful meeting July 22nd with the Task Force Officers. Like you, sir, I have responsibilities whose relationships are not always clear. Aside from my railroad work, I sit as a member of the Eastern Pennsylvania Comprehensive Health Planning Board with a committee assign- ment on the Project Review Committee. Schuylkill County has spent the past 2½ years in the Eastern Pennsylvania Comprehensive Health Planning Board area, has habits of health consumption concurrent with this area, and thus desires to continue health planning with an agency whose proce- dures are developed and operational. Unfortunately, and for no apparent reason, Schuylkill County has been transferred to the Northeastern Pennsylvania region where, among other drawbacks, there is no consensus about the appropriate agency to form the Health Systems Agency. I am approaching you on this matter because of the frustration deriving from the "shuttlecock" method of regional designation responsibility. As the attached correspondence indicates, the Federal government claims this decision must be appealed through the Governor's Office; the state main- tains the matter is now one for the Secretary of HEW. While adroit, neither answer is addressing the health planning considerations involved. Dr: Theodore C. Marrs Page Two September 16, 1975 Any assistance you might provide in assisting Schuylkill County in its attempt to remain with the Eastern Pennsylvania Comprehensive Health Planning Board will be deeply appreciated. Thank you very much for your attention. Sincerely, Berbara Cdams Barbara Adams Member EASTERN PENNSYLVANIA COMPREHENSIVE HEALTH PLANNING BOARD BA:mas Enclosures cc: Mr. Peter Whittier Senator Hugh Scott Senator Richard Schweiker Congressman Gus Yatron Chris Owens Leonard Bachman November 28, 1975 FORD & QERALD LIBRARY MEMORANDUM FOR THE SECRETARY OF STATE SUBJECT: International Blood Denors Exchanges It is my understanding that you have been contacted by Senator John G. Tower on this matter. I would approciate a copy of your reply to him and any additional comments which will enable us to be most responsive to Senator Tower's interest. Thank you. Theodore c. Marro Special Assistant to the President Attachment TCM/vhs BCC: John Vickerman the Bennett Cloup/ Health Services 407 N Street, S.W. Washington, DC. 20024 202/484-3344 FORD & LIBRARY 01RALD March 25, 1976 Honorable Theodore C. Marrs Special Assistant to the President Old Executive Office Building - Room 103 The White House Washington, D. C. 20500 Dear Ted: This may seem like a lot of background about the final Medicaid Home Health Regulations presently awaiting the Secretary's signature, but I will try to highlight those areas germaine to the proprietary issue. We could fill volumes about the need for home health agencies, the cost effectiveness, and the numbers of needy recipients not being served. For right now, though, I'll just give you the most recent history and the rather inconclusive ar- guments that certain members of Congress are foisting on the Secretary. 1. SRS/MSA developed several drafts of the regula- tions over the past two years. There has been only one Medicaid regulation (Section 249.10) on home health (copy attached) since passage of the law. Since 1965, there has been only a Policy Information Memo issued to the states (copy attached), which cannot even be called a guideline, since it is marked "For Internal Use Only" and, therefore, carries no weight. 2. On June 9, 1975, SSA issued proposed regs, under mandate from the Federal Courts, (finalized December 4, 1975) to allow non-profit agencies to subcontract for services with proprietary agencies. Otherwise, proprie- taries can participate in Medicare only in those fifteen states that license home health agencies. Why all states don't license is beyond me. Dr. Marrs Page 2 March 25, 1976 3. On July 2, 1975, Secretary Weinberger sent his 1975 Medicare proposals to Congress in letter form (copy attached). These included a statutory change to include proprietaries, but were never put into bill form. 4. On August 8, 1975, Secretary Weinberger signed the proposed Medicaid regs and they were published in the Federal Register on August 21. 5. Some time after the publication, two eager Con- gressional Committee staff members decided, on their own, that the new regs were a "change in HEW policy", which is a Congressional prerogative. 6. On October 28, a joint hearing was held by the Senate Special Committee on Aging, Subcommittee on Long Term Care and the House Select Committee on Aging, Sub- committee on Health of the Elderly and Long Term Care. The issues were aired. (MSA Commissioner Dr. M. Keith Weikel's remarks are enclosed.) 7. On November 17, Commissioner Weikel called a meeting of all interested parties (Congress, non-profit home health association, state Medicaid directors, and proprietary home health agencies) to further discuss the proposed regs. MSA revised the proposed regs as a result of a number of suggestions put forth at the meeting. 8. On December 12, Senator Moss and Congressman Pepper sent a letter to the Secretary opposing the regs (copy attached). The facts are clear to us, Ted, that the Secretary has all of the authority needed to issue these regs (see Intent of Congress in original Social Security Amendments). It was not, and never has been, Federal policy to keep out pro- prietaries. In addition, the Moss/Pepper letter stated that the "regs would have a deleterious effect on the quality" if pro- prietaries were to be included as providers. In fact, testimony by the National Association of Home Health Agencies on February 24 before the Pepper Committee stated that there Dr. Marrs Page 3 March 25, 1976 was no difference in the quality of care provided whether for-profit or not-for-profit. Statements of this type seem emotional, and not based on fact. The facts are that home health has not been a viable mode of health delivery, yet it offers one of the most viable means of keeping the patient in the appropriate setting while saving untold dollars of government money. There are 30,000 home health personnel in the currently certified 2,209 home health agencies. One of the proprietaries has 52,000; another proprietary has over 30,000. This manpower resource would be injected into the Medicaid program with no injection of federal funds for training and startup. SRS and the Assistant Secretary for Health, Dr. Cooper, are 100% behind the regs. We feel the Secretary needs some re- assurance, and your ideas on this subject could be most helpful. We have additional figures on the unmet need, studies concluding that proprietaries are necessary, favorable comments on the proposed regs and client kudos, if you need them. Best regards, Backeley Berkeley V. Bennett President BVB:sg Attachments: (1) Alabama & Washington Participation (2) Medicare Regulations (3) Policy Memo (4) Secretary Weinberger's Medicare Proposal (5) Proposed Regulations (6) Dr. Weikel's Comments (7) Moss/Pepper Letter (8) Intent of Statute (9) Chart of Medicaid Expenditures HEALTH. OF DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE AMERICA SOCIAL SECURITY ADMINISTRATION U.S.A. BALTIMORE, MARYLAND 21235 May 5 1976 OFFICE OF THE COMMISSIONER REFER TO: INI-411 Honorable Bob Dole United States Senate LIBRARY GERALD R. FORD Washington, D.C. 20510 Dear Senator Dole: In your letter of January 12, 1976, you raised the point of whether administrative action might better serve to make recomended changes in the Medicare program than legislative action. The delay in our response was occasioned by our desire to determine the most current status of several projects va are undertaking which impact on areas under consideration for legislative action. We understand that of the four recommendations cited in your letter, only the fourth item cencerning data precessing is still contained in the proposed legislation. However, we have reviewed all four proposals and thought you might be interested in our thoughts with respect to each of the concepts outlined in the enclosure to your letter. 1. Single agent for carrier and intermediary responsibilities. The separation of the administrative structure for Part A and Part B was dictated by the characteristics of the original statutory provisions and, to some extent, was an accident of legislative history. Under section 1816 of the act, providers of services for Part A (hospitals, skilled nursing facilities, and home health agencies) are permitted to nominate the inter- mediary they wish to deal with subject to the Secretary's approval whereas the Part B carriers are selected by the Secretary. Some long term economies would be effected by providing for a single Part A/Part B contractor agent but the transition to such an arrangement could cause serious operational problems. Legislation would be required to effect a shift to the single agent concept because of the authority in present law given to the Part A providers to nominate their own intermediaries. We are not prepared at this time to recomend legislation to change the nomination procedure, but we are con- sidering various approaches to how the Secretary, through legislation, could be authorized to select intermediaries. 2. Realignment of Part A and Part B geographic areas. As a general premise, we would agree to the need for some consolidation of contractor territory and reduction from the 125 contractors that we have new. To carry out such a consolidation, we think it would be necessary to give the Secretary authority to select intermediaries which, as indicated above, would require legislation. 2 With respect to the possible advantages of utilizing regional data processing centers, we have moved forward in exploring this alternative. A request for proposal (RFF) was issued in late fall and a review of the bids submitted by consultant fines is in process. We are hopeful that the results of this study can be used as a determining factor in our decisions on the merits of this approach. 3. Establishment of an objective and competitive precess for the selection of carriers and intermediaries. There is a need, which we are addressing, to formulate standards of performence which would spell out minimum acceptable levels of performance. When complete, such comparative standards could form part of the base for an objective selection process for carriers and intermediaries. We have been utilizing a number of measures, indicators, and reports which get at the quality and efficiency of a contractor's operation. The measurements have been primarily historical data and are detailed with respect to administrative cost experience, claims processing activity, audit activity, etc. We are achieving significant progress in developing these measures into "pass or fail" standards for minimum levels of per- formance. For the most critical factors in Part B of the program, we hope to have measurements in place within the next year or so. Part A would be implemented shortly thereafter. As a result of recommendations by the HEW Advisory Committee, we will shortly be contracting with a consultant firm for assistance in order to accelerate the work on performance standards. It would be necessary to revise the existing Medicare statute to permit us to select contractors on a competitive fixed price contract basis because existing law specifies reimbursement of contractors' administra- tive expenses on a reasonable cost basis. We do have authority under present law to experiment with the letting of 6 fixed price contract on a competitive basis and will plan to do so if an existing carrier either leaves the program or has his territory reduced. 4. Determination of proper site for data processing activities. There has been much concern expressed with respect to the electronic data processing (EDP) activities of Medicare contractors, primarily in Part B of Medicare. In early years, significant problems were encountered by a number of carriers in handling their EDP workloads, and some carriers subcontracted the KDP services in order to operate more effectively. Although only a single company offered data processing services originally, there are several companies in the Medicare field presently. As the original subcontracts expire, we are requiring the carriers to follow competitive processes in order to enter into new subcontracts. We are also sharpening our procurement procedures with the aim of creating an environment for more competition in the private sector. FORD & GERALD LIBRARY 3 There is a trend by many of our carriers to shift back from subcontracted EDP to in-house operations. Our basic position has been that a contractor has the right to change from a subcontract arrangement to an in-house operation, if the move "in-house" is more sconemical than the prior sub- contract arrangement. The Bureau of Health Insurance reviews these decisions to move in-house to assure that the cost analysis is sound and I think they should continue to do so. In conclusion, I hope we have been responsive to your concerns and if there is any additional information that you would like, let us know. Sincerely yours, James B. Cardwell Commissioner of Social Security cc: Mr. Theodore Marrs Mr. George Kelley Regional Representative, HI, Kansas City GERALD LIBRARY R. FORD