AAPS News 1972

1972 INDEX
AAPS NEWS LETTERS and BULLETINSJANUARY THROUGH
DECEMBER
News Letter
Emergency Bulletin
Information Bulletin
Legislative Bulletin
NL EB
18
LB
Name or Item
Index No.
Typ
Date
-AAAPS Amendments
AAPS Annual Meeting
AAPS Group Hospital Money Program
"Acupuncture: Old Chinese Treatment"
6
15
NL
NL
May
November
Anthcny, Mrs. E. E.
15
Nl
November
March
May
August
9
10
15
NL
NL
NL
August
September
November
Ball, Robert M.
17
NL
December
10-6-72
Benson, Ezra Taft
April
6-9-72
9
15
NL
NL
August
November
Blue Cross
10
NL
September
Blu& Shield
3
9
17
NL
NL
NL
March
August
December
NL
3
5
NL
NL
March
April
3
6
9
NL
NL
NL
17
NL
March
Moy
August
10-6-72
December
Bornemeier, Wolter, M.D.
NL
July
Boyle, Joseph, M.D.
17
NL
December
Brian, Earl W., M.D.
14
NL
October
Bried, Jahn T.
14
NL
October
14
NL
October
NL
March
Britton, Melvin C., M.D.
NL
October
Brookings Institution Report
Aetna Life Insurance Campany
9
10
NL
NL
Augut
September
Bureau of Labor Statistics
3
5
6
NL
NL
NL
March
April
May
9
15
NL
NL
August
November
American Association af
Medical Society Executives (AAMSE)
15
NL
November
California HMO
17
NL
December
2
9
NL
NL
February
August
6
15
NL
NL
May
November
NL
June
10
NL
September
NL
July
13
17
EB
NL
9-29-72
December
November
NL
January
10
17
NL
NL
September
December
Carpenter, John
AMA Annual Meeting
NL
July
Cathles, Lawrence M., Jr.
AMA Code of Ethics
17
NL
December
Chisholm, Shirley A., Repr.
American Federation of Labor-Congress

of Industrial Organizations (AFL-CIO)
July
January
Caine, Curtis W., M.D.
Camardese, N. M., M.D.

15
NL
NL
-c-
NL
AMA
8-
10-6-72
14
Allan, David, M.D.
Date
Anthony, E. E., M.D.
Adler, Lawrence, M.D.
Alford, T. Dale, M.D.
Type
NL
NL
NL
AAPS Index, 1971

AAPS Resolutions
Index No.
3
6
9
AAPS Delegates
AAPS Freedom Programs
Name or Item
Campbell, R. L., M.D.
AMA Council on Medical Education
NL
July
Cohen, Wilbur
AMA House of Delegates
July
December
17
NL
NL
Cook County (Ill.) Hospital
NL
March
AMA Legislative Staff
13
EB
9-29-72
"Crisis '72" Cassette
NL
June
AMA Newsletter
2
15
NL
NL
February
November
"Crisis 72" Educational Campaign
6
7
NL
NL
American Medical News
17
NL
December
May
June
8-29-72
Name or Item
Index No.
Cullum, Mrs. Albert G. J.
15
Current Government Spending
Type
Date
NL
November
NL
January
Name or Item
Index No.
Health Insurance Plan of Greater

New York (HIP)
Type
Date
NL
February
9
10
13
14
15
17
NL
NL
NL
NL
NL
NL
EB
NL
NL
NL
February
March
April
July
August
September
9-29-72
October
November
December
"HMO's Versus Ethical Medicine"
15
NL
November
Hogue, Robert J., Jr., M.D.
14
NL
October
1
13
NL
NL
EB
January
February
9-29-72
HR-1 (Public Law 92-603)
11
14
15
17
EB
NL
NL
NL
9-29-72
October
November
December
Health Maintenance Organizations

(H.M.O.'s)
-D
5
8
"Declaration of Interdependence, A"
NL
July
Democratic Platform Committee
NL
July
NL
NL
February
November
8
14
15
17
NL
NL
NL
NL
NL
NL
NL
March
April
May
July
October
November
December
HR-2
10
NL
September
Edwards, Marvin
NL
July
HR-9323
10
NL
September
Ellis, Effie
NL
July
HR-15474 (Public Law 92.... 14)
10
NL
September
England, Robert G., M.D.
NL
August
England, Mrs. Robert G.
6
15
NL
NL
May
November
Evans, M. Stanton
9
15
NL
NL
August
November
15
NL
NL
NL
NL
May
June
July
November
NL
February
5
6
15
NL
NL
NL
April
May
November
15
NL
November
NL
August
NL
NL
NL
EB
NL
January
July
September
9-29-72
December
17
NL
NL
NL
NL
March
April
July
December
Department of Health, Education, and

Welfare
15
Dorrity, Thomas G., M.D.
3
5
6
House Ways and Means Committee
-E-
J -
Jaggard, Robert S., M.D.
7
8
-F-
10
IB
NL
NL
NL
NL
NL
,4..4..72
April
May
June
July
September
Finder, Richard J., M.D.
10
NL
September
Finkel, Barney W., M.D.
3
6
NL
NL
March
May
12
17
EB
NL
9-29-72
December
4
5
"Facts for Patients" Series
7
8
Food and Drug Administration
John Hall Medical Society, Inc.

(San Francisco)
Johnson, Charles W., M.D.
Johnson, Lyndon. Baines
-KKaiser-Permanente
Kennedy Bill (National Health
Insurance, S-332n
-G2
Grady, John L., M.D.

Group Health Association of America
NL
February
NL
January
10
13
17
Kennedy, Edward, Senator
-H-
3
5
8
10
NL
September
Havighurst, Clark C.
NL
February
Kingfisher County (Okla.) Medical Society
NL
June
Hazardous to Your Health
NL
July
Kleindienst, Richard
NL
April
Health Care Foundation of

Missouri (HCFM)
NL
March
NL
January
3
6
15
NL
NL
NL
March
May
November
Kilpatrick, James J,
Health Insurance Association of America
Komanetsky, William M., M.D.
Name or Item
Index No.
Type
Date
Name or Item
Index No.
Lom, David
NL
July
Nation's Business
6
8
1-5
NL
NL
NL
May
July
November
National Conference of Christians

and Jews
Leithart, Mrs. Paul W.
6
15
NL
NL
May
November
Letter to AAPS Wives
NL
March
Loma, Gerry, Ph.D.
NL
July
Long, Russell, Sen.
11
EB
9-29-72
Lynch, James R., M.D.
14
NL
October
- Mc McDonough, Patrick J., M.D.
NL
May
NL
February
-M-
Medicaid
New England Journal of Medicine, The
14
NL
October
New England Rally for God, Family,

and Country
NL
July
Nichols State University
NL
June
2
3
15
17
NL
NL
NL
NL
February
March
November
December
NL
June
Parker, Thomas, M.D.
8
17
NL
NL
July
December
Parkinson, Gaylord, M.D.
9
15
NL
NL
August
November
Nixon, Richard M., President
- P-
Patient Care
NL
August
9
15
NL
NL
August
November
NL
June
NL
January
6
15
NL
NL
May
November
Pettengill, Daniel W.
NL
August
Phillips, Clyde, M.D.
NL
November
NL
August
15
17
NL
NL
I
7
NL
NL
Peterson, Maurice W., M.D.

Peterson, Mrs. Maurice W.
NL
March
November
December
"Please Doctor, Do Something," AAPS

Statement before Republican Platform
Committee
10
NL
Septembar
January
June
"Political Fallacy that Medical Care Is

a Right, The"
14
NL
October
Powell, J, Enoch, The Honorable
15
NL
November
5
7
NL
NL
April
June
2
3
4
5
15
NL
NL
IB
NL
NL
February
March
4-4-72
April
November
17
NL
December
15
17
NL
NL
November
December
Quality of Life Seminar
NL
July
Quinlan, Donald, M.D.
8
15
NL
NL
July
November
Famil;i:
"Medicredit Hoax"
NL
March
Metropolitan Atlantic Foundation for

Medical Care
NL
February
Miller, Gerald, M.D.
NL
March
3
5
8
10
NL
NL
NL
NL
March
April
July
September
Minnesoto Blue Cross
10
NL
September
Mississippi Foundation
15
NL
November
NL
March
3
6
8
15
NL
NL
NL
NL
March
May
July
November
NL
June
Mount Zion (San Francisco) Hospitol and

Medical Center
April
9-29-72
Peer Review
15
Morals and Liberty
5
13
February
Medical Society of Virginia
Moorhead, Robert J., M.D.
April
NL
EB
March
November
December
February
Missouri State Medical Association
NL
NL
NL
NL
NL
Mills, Wilbur, Representative
NL
Medicredit (AMA)
September
3
15
17
Medical Society of Deleware
Medicare
NL
Medical News from Washington, D.C.
Medical Student ..
Doctor . Citizen
10
Nationol Heolth Insurance
Notice of Nomination of Delegates
Mcintyre, Thomas, Sen.
Maricopa (Ariz.) Foundation for

Medical Core
Date
N8
Leithart, Paul W., M.D.
Type
Private Doctor's Code (AAPS)
14
NL
October
Private Doctors Institute
Professional Standards Review

Organization (PSRO)
Public Law 92-603 (HR-1, Social
Security Amendments of 1972)
-Q-
Name or
Item
Index No.
Type
Date
Rarick, John R., Repr.
Index No.
Type
Schreiber, Jack, M.D.
17
NL
December
Senate Fi nonce Committee
2
3
15
NL
NL
NL
February
March
November
Shuman, Charles B.
3
5
6
NL
NL
NL
March
April
May
Smith, F. Michael, M.D.
NL
June
Name or Item
Date
NL
NL
August
November
15
NL
NL
August
November
10
NL
September
NL
August
Somkin, Anthony, M.D.
14
NL
October
2
15
NL
NL
February
November
Stanbery, Marie, M.D.
6
15
NL
NL
May
November
NL
February
Student AMA
NL
July
Rogers, Frank A., M.D.
6
8
NL
NL
May
July
Survey af Current Business
NL
January
Rogers, Paul, Repr.
NL
April
7
17
NL
NL
June
December
Rumph. Mrs. Mal
15
NL
November
''Tax Americans Dizzy''
NL
March
Ryker, Kenneth W., Capt.
15
NL
November
Tierney, Thomas M.
17
NL
December
NL
February
NL
January
IB
4-4-72
Washington, George
17
NL
December
Weinberger, Caspar
NL
March
5
6
8
15
NL
NL
NL
NL
April
May
July
N11vembr
15
Raskind, Robert, M.D.
Remillard, Francis A., M.D.

Republican National Convention
Committee - AAPS Testimony
Richardson, Elliot L.
Rocky Mountain Health Maintenance

Organizations, Inc. (Grand Junction, Col.)
Roth, Russell. M.D.
- T-
-s-
- u-
S-3323
10
NL
September
S-32
10
NL
September
14
15
NL
NL
NL
August
October
November
6
15
NL
NL
May
November
3
5
6
8
NL
NL
NL
NL
NL
NL
March
April
May
July
August
November
NL
NL
NL
March
April
May
Sade, Robert, M.D.
Saxon, Mrs. Michael
Schenken, John R., M.D.
15
Schmitz, John G., Repr.
s
6
United States Supreme Court
-WWall Street Journal, The

Wall Street Journal Ad
Woolley, Frank K.
ASSOCIATION OF AMERICAN PHYSICIANS AND SURGEONS

2111 Enco Drive. Suite N-515-519, Oak Brook. Illinois 60521
Frank K. Woolley. Executive Director
312/325-7911
THE VOICE FOR PRIVATE DOCTORS
Index No.
January, 1972, Volume 26, No. l
EMERGENCY - Nationalization of Medicine
Government Would Spend 50% of all Earnings
How to Bankrupt America
NATIONALIZATION OF MEDICINE
See enclosed summary of AAPS Testimony to the
House Ways and Means Committee:
Although U. S. Constitution does not give

Congress authority to nationalize medicine, it is now actively discussing a variety of schemes to do so.
The House Ways and Means Committee
recently concluded hearings on several
bills to control medical practice by the
usurpation of power via subsidies. The
bills were promoted by the AFL-CIO, the
Nixon Administration, the Health Insurance Association of America, the Group
Health Association of America (mostly
labor leaders), American Medical Association, and others.
WHAT YOU CAN DO
NOW!
1. Read this Association's Testimony and note

that political medicine:
will increase costs and increase inflation;
will lower quality of medical care;
is morally, economically, legally, and

medically unsound;
will further breach the Constitution;
will carry out in whole or in port, Wilbur

Cohen's plans for nationalization of medicine and destruction of our system;
proposed by AMA (Medicredit) is a trap;
is inherently evil according to England's

former Minister of Health;
for "helping the poor" is a smokescreen

aiding the destruction of our system.
2.
Order some more copies of the enclosure

(see quantity prices below), and then call
your local:
Medical Society
Chamber of Commerce
Farm Bureau
Independent insurance agent
Daughters of the American Revolution
Sons of the American Revolution
Precinct Captain (whether Republican,

Democrat, Independent or other)
All other local organizations you can enlist to help us save our system
3. Supply copies of the AAPS Testimony to leaders of these groups.
4. Review it with them and answer their questions.

5. Explain that any of the schemes before Congress means many more billions of dollars in
government cost when government is broke.
6. Urge them to write their own U. S. Representative and U. S. Senators pointing out
that this mad spending must stop to avoid
fiscal collapse.
7. Urge them to pass resolutions at their next
meeting condemning political medicine as
bad medicine.
8. Write your U. S. Representative and Senators
in Congress enclosing copies of the Testimony. Ask them in your own words - 11 Are
you willing to work against the next step into
nationalized medicine?"
9. If you get a reply that is non-committal write
again and again until you receive an answer which nails down what your representative will do.
l 0. If either favorable or unfavorable, publicize

where your representative stands so no one
can be heard to complain that they weren't
warned that political medicine is bad medicine.
11. LIVE UP TO THE PRIVATE DOCTOR'S CODE

OF AAPS.
MONSTROUS GOVERNMENT SPENDING
WILL DESTROY OUR SYSTEM
Senator Kennedy admits his bill will cost approximately $60 billions and competent observers believe
it will cost at least $100 billion so that government
would be spending 50% of everything everyone
earns before taxes.
IV. FACTS OF BANKRUPTCY
Over 43% of everything everyone earns is now

being spent by government.
($374 billions is 43% plus of $854. l billions)
HEW now spends more than all corporate profits

after taxes.
($58.063 billions is 128% of $45.2 billion)
HEW expenditures are currently more than 25%

of all federal spending.
($58.063 billions versus $224 billion)
AMA would increase government spending to

over 45% of everything everyone earns.
($374 plus $13 = $387 versus $854)
Kennedy would increase (as a minimum) government spending to over 50% of everything everyone earns (before taxes).
($374 plus $60 = $434 versus $854)
To further indicate the suicidal absurdity of more

government spending, Mr. Nixon has proposed
a federal budget of $245 billions for 1973 fiscal
year which begins June 30, 1972. The current
deficit is $21.2 billion and on January 19, 1972
Mr. Nixon admitted a current budget deficit of
nearly $40 billion (see Wall Street Journal, January 19, 1972) which closely approximates all
the profits after taxes of all the corporations in
the United States.
According to the Bureau of Labor Statistics data,

Americans spend more money on good times
than on health care. Last year, we spent $16
billion on booze and $14 billion for physicians'
services. The bill for recreation was $36 billion
against $18 billion for hospital care. Barbers
and beauticians got $9 billion but only $6 billion
went for prescription drugs. Use of tobacco was
increased, with $11 billion spent.
HOW TO BANKRUPT AMERICA

I. CURRENT GOVERNMENT SPENDING (BILLIONS)
Federal ($224); State & Local ($150) $374
HEW
$ 58.063 2
Medicare
7.875 3
II. INCOME OF EVERYBODY BEFORE TAXES

(except Corporations, after taxes)
$854.1 4
Wages and salaries
$579
Other Employee ''income"
68.7
Proprietors' income
68.8
Rental income
24.5
Corporate Profits (after taxes) 45.2

Taxes (Corporate)
37.9
Inventory Adjustment
-6.14
Ill. PROPOSALS TO INCREASE HEW SPENDING

American Medical Association
$ 13.0 5
Kennedy
$ 60.0 6
(probably would be
over $100 billion)
Survey of Current Business, December, 1971, U. S.

Department of Commerce, p. 12
Ibid., p. 5-18
Social Security Bulletin, December, 1971, p. 20
Survey of Current Business, December, 1971, p. 10
AMA Testimony, House Ways and Means Committee, Fall, 1971, on NHI.
Testimony on NHI, House Ways and Means Committee, Fa II, 1971.
Sincerely,
Thomas G. Dorrity, M.D.

President
Enclosures:
Medical News from Washington, D. C.

Single copies
10 copies 50 copies 100 copies -
of Statement - Free
$1.00
$3.50
$5.00
Order Form

2111 Enco Drive. Suite N-515-519, Oak Brook. Illinois 60521
Frank K. Woolley, Executive Director
312/325-7911
Index No. 2
February, 1972, Volume 26, No. 2
AAPS Testified Before the Senate Finance Committee - February 9
HMO's Financing Without Congressional Approval
Doctor Held Responsible for Hospital Bill
Government Paperwork Snows Under Business
Military Waste Medical Personnel
AMA Losing Membership and Seeking Federal Subsidy
Private Doctors Institute, Chicago, April 20-22

independent doctors who practice outside these
AAPS TESTIFIED BEFORE THE SENATE FINANCE

COMMITTEE -
combines.
FEBRUARY 9
As a free and independent voluntary organization of members of the medical profession, the
AAPS testified against HR-1 which has passed the
House and is soon to be considered on the Floor
We pointed out that individual physicians practicing ethical medicine have been harassed, dismissed from medical staffs, and had their patients
notified by government agents that their charges
are unreasonable, even though this was untrue. As
of the Senate.
a consequence of the interference by government,

many physicians are stopping private practice or
HMO's
considering doing so rather than submit to such

This multi-billion dollar bill authorizes federal
subsidy and control of closed panel per capita prepayment group practice for everyone, euphemistically
called
Health
Maintenance
harassment.
The House Ways and Means Committee Report
on HR-1 indicates that:
Organizations
(HMO's). It would permit financing lay-controlled
(1) Instead of forcing the bureaucracy to keep
organizations for the practice of medicine. This is
its hands off the practice of private medi-
what the labor union-HEW political combine has
cine, it proposes to plunge on into more
promoted for a number of years to drive doctors
controls. For example, it reads:
into salaried practice first under their control, later
"a serious problem in the present approach
under government control.
in
to payments for services in the health field
groups, who will subordinate themselves to the
... either by private patients ... or govern-
labor union-government political combine, are to
ment is that . . . there is an economic in-
be subsidized, and their rolls of patients increased
centive . . . of providing more services .
Practically all patients are to be lured away from
that may not be essential ... "
Doctors practicing
CITIZENS TOO DENSE
a state and local responsibility which should not be

pre-empted by or surrendered to the central gov-
(2) "A second major problem is that ordinarily,
ernment.
the individual must largely find his own

way.."
After submitting substantiating evidence that the

real crisis in America is spending by government, we
HMO TO RATION AND PROFIT
encouraged the Committee to live up to its con-
(3) "no one takes responsibility ... for deter-
stitutional duty and responsibility for restraining the
mining the appropriate level of care in total
bureaucracy before it delivers us to the enemies of

free men by destroying our private capitalistic system.
and farseeing that such care, but no more,

is supplied."
(4) ''The pattern of operation of Health Maintenance Organization's that provide services
on a per capita prepayment basis lends itself to a solution of both of these problems. . ."
OPENING WEDGE
One of the proponents of the bill admitted:
''This bill is likely to be the first act of Congress to
endorse the HMO concept, and it is therefore an
important step in pointing the direction in which
''because the organzation receives a fixed
the health care system is to move. In fact, the

policy of encouraging the development of HMO's
annual payment from enrollees regardless
has the potential for revolutionizing the entire
of the services rendered, there is a financial
industry."
incentive to control costs and to provide

only the least expensive service..."
He expressed delight that some medical societies were organizing medical care foundations -
"Moreover, such organizations take responsi-
meaning, taking the HMO political bait. (Testimony
bility for deciding which services the patient
of Clark C. Havighurst, Duke University.)
should receive and then see that those are

the services he gets."
It is absurd to think that doctors will be permitted by any governmental scheme to continue to
We stated:
'We submit that subsidizing one type of
practice over another is revolutionary, unfair and not in the interests of patients or
exercise their own independent judgment when the

labor union combine, with accomplices in government,
have been working for years to destroy that independent judgment.
physicians."
We urged:
TODO
l.
carry out the Association's recommendations
(1) that the bill be stripped of all subsidies and
set forth above.
special privileges for per capita prepayment

group practice
Write your Senators promptly urging they
2.
Encourage all of the following to write,
(2) no subsidy should be added to pay medical
wire, call or personally interview their Sen-
societies or medical foundations which be-
ators urging opposition to this revolutionary
come policemen of federal government med-
legislation:
ical programs.
Local medical societies; specialty organ-
We applauded - the stand of Governor Reagan
izations; Chambers of Commerce; Farm
before the Senate Finance Committee rejecting
Bureaus; Pharmacists; Service organiza-
nationalization of welfare insisting that welfare is
tions such as Rotary, Kiwanis, etc., local
Republican
and
Democratic
Precinct
Committeemen, etc.
HMO's FINANCING WITHOUT
CONGRESSIONAL APPROVAL
j\Jdgment for that of the attending physician.

MORE CONTROLS FOR PHYSICIANS
HEW Secretary, Elliott L. Richardson, on February 10, 1972, submitted Amendments to the Admin-
The Nixon Administration working through the
istration's proposed national health insurance plan
Department of Health, Education, and Welfare, with-
dealing with regulating health care insurers and pro-
out any specific authorization from Congress, subsi-
viders. Additional provider regulations are:
dized HMO activities last year in the amount of $6.5

million. This was in 66 separate grants. Thus, the
bureaucrats are digging away at the foundations
of doctors' organizations.
"Under NHIPA (National Health Insurance Partnership Act) standards, health service providers,
must . . . supply information on charges for
commonly provided services, hours of operation
State and local medical foundations have con-
and other patient access matters, and the ex-
vinced some doctors with the assurance that they
tent to which the provider is licensed, accredited,
will be able to continue to practice on a fee-for-
or certified by recognized or official health bod-
service basis. However, the 1, 100 M.D.'s serving the
ies. Health service providers include physicians,
Health Insurance Plan of Greater New York (HIP)
hospitals and nursing homes.''
have been notified they will have to give up all
(Emphasis added)
private practice and work full-time for HIP if they

want to remain with the prepayment Plan. This is
an HMO type group which, undoubtedly, would
GOVERNMENT PAPERWORK
SNOWS UNDER BUSINESS
expect to qualify under the Administration's closed
America's businessmen are spending $181 billion
panel per capita prepayment group practice plan.

It is in line with what the Group Health Association
a year either in accountants' fees or in time lost from

regular work to fill out papers and return them to
of America, organized by labor union leaders, is
federal and local government agencies. Another
planning for all doctors once they manage to gain

control.
$18 billion is being spent annually to print, peruse
DOCTOR HELD RESPONSIBLE FOR HOSPITAL BILL
and store the 4.5 million cubic feet of paper. This

was revealed by a Senate Subcommittee on Government Regulations headed by Senator Thomas Mc-
Doctors who admit patients to hospitals may
Intyre (D., N.H.). Aides said that: "the paperwork
end up legally responsible for paying patient's hos-
costs are eventually passed on to consumers as a
pital bill. A small claims court judge in Philadelphia
necessary cost of doing business.''
has ruled M.D.'s are liable if patients are hospitalized

unnecessarily. The case involved a nine day hospitalization of a patient for a "standard ulcer regime.'' Blue Cross refused to pay hospital bill claim-
MILITARY WASTE MEDICAL PERSONNEL

The Government Accounting Office on December
16, 1971 reported:
ing hospitalization was for diagnosis not covered in

the contract. Patient refused to pay. A Philadelphia
"Better use of health-care personnel in all of
County Medical Society Peer Review Committee con-
the military medical services would help to re-
cluded treatment could have been given outside hos-
lieve the critical shortage of medical professional
pital. Doctors contended patient was hospitalized
personnel in the nation.''
because her home environment interfered with recovery. The case is being appealed and will be
This relates to "more than 200,000 medical per-
watched carefully to determine whether the judiciary
sonnel, of which more than 33,000 are professionals
will concur with medical societies substituting their
providing this care.''
BOUND COPIES OF 1971 AAPS NEWS LETTERS

AND BULLETINS
AMA LOSING MEMBERSHIP AND

SEEKING FEDERAL SUBSIDY
The AMA Newsletter reported "dues-paying
membership declined from
168,214 in
1970 to
156,943 in 1971, a drop of 7%." At $110 per year
They are now available at the Oak Brook Headquarters office. Each AAPS member should have a
set of bound copies of 1971 AAPS News Letters and
Bulletins with Index.
this represents a $1,240,000 loss in dues.
This volume contains a wealth of information on

In the same Newsletter it was announced the
AMA disclosed it is seeking $679,000 grant from
pertinent subjects such as HMO's, Foundations, and

Peer Review.
HEW which, if approved, will be used for "the establishment of a 'self-assessment resource center' as
a feature of AMA Conventions."
Order your copy today and enclose your check

for the number of copies you will need; also, send
one to a non-member friend. The price - $2.00 each.
AMA also reports that four medical societies

have been awarded $235,000 HEW money for
CONGRATULATIONS TO
"Heolth Maintenance Planning and Development."
DRS. CAMARDESE AND GRADY
The subsidies reported were:
N. M. Camardese, M.D., Norwalk, Ohio has

been honored again by receiving the Norwalk
Metropolitan Atlantic Foundation,

for Medical Care
$85,000
Chamber of Commerce's Distinguished Citizen Award.
Maricopa (Arizona) Foundation

for Medical Care
$80,000
Medical Society of Delaware
$25,000
John Hall Medical Society, Inc.

(San Francisco)
$25,000
John L. Grady, M.D., Mayor-Commissioner of

Belle Glade, Florida, was presented the annual Jaycee "distinguished service award."
PRIVATE DOCTORS INSTITUTE
Rocky Mountain Health Maintenance

Organization, Inc.
$20,000
(Grand Junction, Colorado)
Chicago, April 20-22, 1972

See the enclosed program for details about the
It is a well-established principle of the relation-
Institute. The program is specifically aimed at shed-
ship of individuals to government that government
ding light on how you can maintain your freedom by
regulates anything it subsidizes (U.S. Supreme Court,
better organizing the forces of individu-alism against
1942 Wickard vs. Filburn). The $85,000 subsidy that
the on-rushing collectivist tide.
the Atlanta (Georgia) Medical Society is accepting

Sincerely,
From HEW may appear unimportant to the uninitiated.

But wouldn't those doctors be much better advised to raise the additional $85,000 out of their
$100 million gross income (based on national aver-
President
ages) rather than permit HEW to compromise the

loyalties of their medical society employees?
Enclosure: Private Doctors Institute Program

2111 Enco Drive. Suite N-515-519. Oak Brook. Illinois 60521
312/325- 7911
Index No. 3
March, 1972, Volume 26, No. 3
Ideas of Mr. Mills
Mr. Nixon's Nationalization Proposals
Blue Shield Arbitrarily Fixes Physicians' Fees
Missouri Doctors Refuse to be Pushed Around
New AAPS Group Hospital Money Program
Salaried Physicians - Beware
Private Doctors Institute - Resolutions - Amendments
April 20-22, 1972 -
Chicago
COMPLETE PROGRAM AND REGISTRATION FORM ENCLOSED
Nation's foremost meeting for practicing physicians
Jam-packed with valuable events
A grand opening ceremony - The noble history of

medicine. Shaping the course of history.
How to influence public policy and opinion T. Dale Alford, M.D.
Launching the dramatic new AAPS public education

campaign
The presidential message "HMO's vs. Ethical Medicine"

- Thomas G. Dorrity, M.D.
An inspiration address "The Price of Individual Freedom"

- Congressman John Schmitz
What's happening in Washington -
Workshops for Speakers Bureau, Public Relations and

Legislative Chairmen
A world-wide view of Medicine in Art. Slide presentation

by John R. Schenken, M.D.
Program events especially for the wives
Seminars for Chapter Officers
Why compromise and collaboration always foil

Charles B. Shuman
Frank K. Woolley
For your spring "vacation" of fun, fellowship and action

don't miss the big event of 1972.
~ted _!o~ pro~;;~~--._
.-~rof~~i~~~li~~~~--~ .- the
p;a~!~~~-~f ~rivate medicine. I
IDEAS OF MR. MILLS

Mr. Mills, in a speech March 3, 1972, said:
''The debate surrounding 'national health
insurance' [nationalized medicine] is not
whether the government should become
involved in health but how much more and
in what way." (His emphasis.)
The following is "what I see as possible major
elements in any ... legislation likely to be approved
by the House of Representatives":
e
e
Replace Medicaid with a uniform set of

benefits.
Provide everyone, including the self-employed, the same coverage at the same
price (including periods of unemployment).
Catastrophic coverage ''which would relate

health costs to taxable income."
Demand must be related to supply.
Use payments to change our system.
Mr. Mills said he thinks yet another national

health plan might be passed this year by the House.
Secretary Richardson expressed encouragement with
Mr. Mill's statement.
WHO PAYS PIPER CALLS TUNE
Continuing Mr. Mills said: "To apply an old
adage, we are being asked to call the tune as the
ones who pay the piper" [taxpayers and inflation
payers should note under the "new" system politicians think they pay and thus become the master instead of remaining the servant].
"We will call a few tunes." i.e.
Require private insurers to use medical

foundations with Senator Bennett type Professional Service Review Organizations
(PSRO) (which would be under the dictation and control of the Secretary of HEW
with a National Medical Advisory group
to advise about "diagnostic and therapeutic practices").
Permit no new building or expansion facilities without approval of a planning agency

controlled by government.
Augment the maternal, child and crippled

chil.dren's program to reduce infant mortality and improve the health of mothers
and children.
MR. NIXON'S NATIONALIZATION PROPOSALS

On March 2nd, the day before Mr. Mills spoke,
President Nixon called for prompt approval of his
nationalized system of medical care for everyone.
The federal bureaucracy, speaking through President
Nixon, would nationalize medical care while he complains that others would "federalize" it. Congress-
man Mills' plan differs only in detail from the Nixon

plan. Senator Kennedy, while pushing his plan, is
pleased with the Nixon principle of forcing everyone
to use prepaid per capita group practice plans
called Health Maintenance Organizations (HMO's).
See quotes AAPS News Letter, August, 1971.
The President in his March 2nd message (H.
DOC. No. 92-261), calling for passage of HR-1 now
pending in the U. 5. Senate, said:
"The Health Maintenance Organization
concept is ... a central feature of my National Health Strategy."
He recognizes he is giving subsidies and control to
the unions when he says:
"The fact that workers and unions would
have a. direct economic stake in the program would serve as a built in incentive,
etc."
He fails to mention that while he proposes giving
unions control, only 25% of the workers are in unions.
Incidentally, buried in this some message was
the following statement:
''The general health of individuals depends
very much on their own informed actions
and practices."
All of these politicians disregard this salient fact.
Likewise, labor union leaders are for the plan
by Messrs. Nixon, Mills, and Kennedy as they relate
to HMO's. For quotes see AAPS News Letter August,
1971.
Thus, it is quite obvious that the politicians
are merely haggling over prices and that freedom
for doctors is in dire peril. Likewise, it is clear that
HMO's and planning agencies, directed and controlled by the central government, are the deadly
enemies of all free men including patients as well as
physicians.
FINGERPRINTING SOCIAL SECURIW APPLICANTS
Meanwhile, the Senate Finance Committee is
studying a plan for fingerprinting applicants for
Social Security cards. This would be mandatory for
older persons who apply for cards but voluntary for
six year old children.
If we are to remain free, obviously, we had
better be very leery of big brother's advances which
may appear clumsy but, nevertheless, have the effect
of subjecting the individual to the smothering embrace of totalitarianism.
BLUE SHIELD ARBITRARILY FIXES PHYSICIANS' FEES
Regrettably, the following situation has developed in some states:
Situation: A physican bills patient directly. Patient has "full service contract" with Blue Cross and
Blue Shield based on usual and customary fees.

Physician is not a party to the Blues contract and
has not consented to it. Blues insist physician must
accept fees based on computer data or it will defend the subscribers in any litigation."
Also, Blues - will refer disagreements to state
peer review committee and possibly State Insurance
Commission.
FULL SERVICE CONTRACT IS CULPRIT
The crux of the matter is the "full service contract." It removes any responsibility on the part of
the patient to restrain demand. This "full service" or
"first dollar coverage" contract is pushed by labor
leaders knowing it forces over utilization, skyrockets
costs, and creates a climate for government interference under the pretext of holding down on medical costs. This unfairly brings physicians adverse publicity; plays into the hands of the collectivists pushing
for the nationalization of medicine; and lends credence to demands for ''changing our system."
When individuals must pay for their choices,
they weigh the cost and restrain demand (or, in
other words, ration demand). As costs rise, individuals resist the increases and thus individuals voluntarily apply the brakes to both increased demands
and costs. This is the market system of voluntary,
willing exchange between buyer~d sellers. The
only other system is involuntary exchange with either
the buyer or seller or both being forced to do something unwillingly by an outside agency.
Blue Shield, by selling a contract that removes
self restraint, artificially increases demand. It creates
other problems by using a computer to force "average" payments, and then when it meets resistance,
appeals to peer review or the State to enforce its
unwise contract. Discontinuance of the sale of contracts which creates these problems provide a better
solution than will further dependence on the use of
force by Blue Shield and the government.
TO DO
1. Doctors should unite to resist such capricious
intervention and thus resist "computer" and
lay control of medical practice.
2. A strong AAPS State Chapter can help
bring out the truth to the public and restrain the actions of Blue Shield and the politicians to whom they appeal.
3. Both patients and physicians must quickly
assume and carry out a philosophy of "don't
tread on me" by thoroughly understanding
ourselves why political medicine is bad medicine.
MISSOURI DOCTORS REFUSE
TO BE PUSHED AROUND
Last Fall, a St. Louis group of ten doctors, including Drs. Komanetsky, Finkel and Jost, filed suit
for an injunction against the Missouri State Medical
Association which had arbitrarily and without authority organized and was operating the Health Care
Foundation of Missouri.
The suit pointed out that:
Automatically all members of MSMA were

made participating members of the HCFM
without their approval or consent
The HCFM caused them damage by:

-requiring them "to violate their physicians' oath by a compulsory inspection
of their professional records causing
them to betray the trust of their patients
and to reveal confidential and privileged communications existing between
their patients and themselves"
-requiring their "professional acts to be
reviewed by a Board consisting in part
of an unqualified lay staff"
-"subjecting them to involuntary servitude"
-"appropriating MSMA funds" ($5,000.00)
"for the (HCFM) in excess of their authority."
Before the suit, President of the Missouri State
Medical Association, Gerald Miller, M.D., stated
threateningly "Missouri physicians will have no choice
in this matter . . ."
However, although the suit is still pending, the
MSMA has, by its actions, acknowledged it exceeded
its authority. In January it sent the members an application asking them to consent to become members. Now we understand only about 25% of the
doctors in the State have signed away their rights
by joining.
Congratulations. to the doctors of Missouri who
refused to be pushed around. Those doctors are
forming a legal defense fund to head off forthcoming assaults on their freedom.
TAX AMERICANS DIZZY
Tax his head, Tax his hide,
Let the government officials ride.
Tax his house, Tax his lands,
Tax the blisters on his hands.
Tax his car, and Tax his Gas,
Tax the roads that he must pass.
Tax the payroll, Tax the sale,
Tax again his hard earned kale.
Tax his pipe, and Tax his smoke,
Teach him ~overnment is no joke.
Tax his golf clubs and the ball,
Tax his membership dues ancl all.
Tax his savings and bank account,
Tax his surplus of any amount.
Tax the water, Tax the air,
Tax the sunlight if you dare.
Tax the living, Tax the dead,
Tax the unborn 'ere they're fed.
Tax their coffins, Tax their shrouds,
Tax their souls beyond the clouds.
Tax them all - Tax them well,
Tax them to the Gates of Hell!
Reprinted from
Retail Ad Costs Research, Owensboro, Ky.
NEW AAPS GROUP HOSPITAL MONEY PROGRAM
SALARIED PHYSICIANS -
BEWARE
The Charter Enrollment Period is now in progress for the AAPS Group Hospital Money Program.
Members have the option of two plans which are
designed to give cash when hospitalized ... a $500
per week or $250 per week plan. This money is paid
directly to the member to spend as he sees fit.
The Internal Revenue Service ruled that five

physicians who devoted full time to a clinic, were
paid a salary, provided with private offices and had
their names on the office register and stationery,
were not independnt contractors but were employees of the clinic.
This plan requires no minimum enrollment in

order to go into effect. Watch your mail for complete details.
The clinic furnished all supplies and equipment

used by the physicians and, under an agreement
with the clinic, the physicians were not responsible
for any of the clinic's debts and acquired no share
in the ownership of the clinic. Therefore, the IRS
concluded that: "since the five associates agreed to
devote their entire time to the clinic, maintained
prescribed office hours, assumed no financial responsibility ... they were not pursuing an independent business or profession."
SENATORS, CONGRESSMEN AND BUREAUCRATS

PLEASE NOTE!
Robert J. Moorhead, M.D. of Mississippi, recently received a note from one of his patients which
read:
''This is just a note to thank you for the excellent care that you gave me while I was in the
Hospital . . . For twenty-two years you have
been a wonderful Doctor, never failing to come
to us when we needed you, and this note is for
the purpose of telling you how much our family
appreciates you."
Would political medicine with bureaucrats harassing doctors permit such a satisfactory patientphysician relationship to continue?
CHAOS CONTINUES AT GOVERNMENT HOSPITAL
The Medical Director of Cook County Hospital,
Chicago, resigned recently following threats that
300 other salaried doctors would resign.
Clyde Phillips, M.D., also Chief of Staff, said:
"It. is unfortunate that these moments of peril and
strile only tend to overlook the most important componei;it in the hospital - the patient-physician relationship."
Despite the fact that the physicians performed

their jobs with little control or direction, THE CLINIC
NEVERTHELESS HAD THE RIGHT TO DIRECT AND
CONTROL THEM IF IT SO DESIRED, the IRS stated.
Citation: IRS Rev. Rul. 79-629, IRB 1970-50, 24
(MSSNY, November, 1971).
RESOLUTIONS
Resolutions to be acted upon by the Resolutions
Committee at the Interim session of the House of
Delegates in Chicago on April 20-22, must be submitted in writing and received at AAPS Oak Brook
Headquarters not later than March 31, 1972.
AMENDMENTS TO BY-LAWS
The By-laws Committee is recommending a
change in the AAPS By-Laws in the wording of Arti
cle 14, State and Local Branches, Section 2, State
Branches.
Sincerely,
P r o b I e m s at Cook County Hospital were

./"""')
"solved"' more than a year ago when a politically
~ o
~
appointed commission established by the State L e g - - - - - ~
islature took charge.
However, feuding and political in-fighting between the staff, politicians, and the administration
at Cook County Hospital has reduced performance
to the lowest level in history. (See prior report "Chicago Political Medicine" - AAPS News Letter, June,
1970.)
The hospital is one of many examples of the
chaos and disastrous results of politically controlled
medicine. The patient always loses.
......., _ ---.
--,--
Thomas G. Dcrrity, M.D.

President
Enclosures: "Acupuncture Old Chinese Treatment"
"Medicredit Hoax"
Private Doctors Institute Program
Letter to AAPS Wives

2111 Enco Drive, Suite N-515, Oak Brook , Illinois 60521
31 2/325- 7911
Index No. 5
April, 1972, Volume 26, No. 4
Private Doctors Institute
AAPS Freedom Programs
AAPS Group Hospital Money Program
Private Doctor's Code
Mills-Kennedy Axis
Temporary Hait to Funding New HMO's by HEW

April 20-22, 1972
Hotels Ambassador
"What's Happening in Washington" by Frank

K. Woolley.
Plus -
Chicago, Illinois
PLAN TO BE IN ATTENDANCE
An excellent program has been put together
speakers are ready - all we need is YOU.
The Presidential Message will be, "HMO's vs.
Ethical Medicine" by Thomas G. Dorrity, M.D.
An inspirational address, "The Price of Individ-
Seminars on State Chapters

Public Education Campaign
Workshops for Speakers Bureaus, Public
Relations and Legislative Chairmen
Resolutions
Amendment to By-Laws
Program Events for the Wives
ual Freedom" by Congressman John Schmitz.

DON'T MISS THIS IMPORT ANT MEETING!
"A World-wide View of Medicine in Art" by
John R. Schenken, M.D.
AAPS FREEDOM PROGRAMS
''No Compromise With Socialism" by Charles
Shuman.
AAPS inaugurated the Freedom Programs in

October, 1949 to "embark upon a program of edu-
"How to Influence Public Policy and Opinion"

by T. Dale Alford, M.D.
cation in freedom for physicians of America and for

their fellow citizens."
Since that time, the Programs were expanded
of medicine as directed by labor politicians and
and became the primary source of financing the
government bureaucrats. A unique method of en-
sending of pertinent information to dues-free mem-
gaging your patients in conversation on the question
bers - interns, residents, and medical students.
of nationalized medicine is to display in your examining room the Private Doctor's Code wall plaque,
Charles W. Johnson, M.D. (San Antonio, Texas)

is Chairman of the Committee for the Education of
Medical Students, Interns and Residents. We cannot
say enough about the remarkable headway this
Committee has made under his capable leadership.
now available. A powerful message, beautifully presented on walnut which clearly indicates your opposition to government interference with your practice of medicine.
If the 200,000 private practicing physicians

would make it clear to the over four million patients
We ask that you show your appreciation by
they see each doy why political medicine is bad
sending in a check in as large an amount as your
medicine, the politicians would not plunge on down
conscience dictates. A card and envelope are en-
the dark road to government dictation and control.
closed for your convenience. Please do not hesitate-
You can help in this struggle by talking to your own
write that check now! It is income tax deductible!
patients.
MAY 31 MARKS END OF CHARTER ENROLLMENT -
PATIENT LEAFLET SERIES
AAPS GROUP HOSPITAL MONEY PROGRAM

The education leaflets for patients, which we
The newly launched hospital insurance plan for
AAPS members has produced promising results. The
mentioned in the special Information Bulletin on

April 4, 1972, can help re-enforce this effort.
increasing number of AAPS participants has been

encouraging, and more are expected to apply before
MILLS-KENNEDY AXIS
the end of the Charter Enrollment Period. Applicants

will receive CASH for each day when hospitalized
The third week of April, Senator Edward M.
. . . $500 or $250 per week, depending on which
Kennedy (D., Mass.) goes to Little Rock, Arkansas
plan is chosen. Acceptance is guaranteed regardless

to speak at a National Conference of Christians and
of past or current health conditions if members enroll before the deadline, May 21, 1972.
Jews' appreciation dinner for Representative Wilbur

Mills (D., Ark.). This comes at a time when Mills is
letting it be known that he would just as soon be
Vice President and when Kennedy is being mentioned
PRIVATE DOCTOR'S CODE
with increasing frequency as the man the Democrats

may wind up nominating for the Presidency. Ken-
Your patients are the most valuable asset you
nedy and Mills have a dialogue going on about
have in saving the practice of private medicine. They
National Health Insurance. The health policy im-
would lose much if you were forced into the practice
plications of a Kennedy-Mills alliance are ominous.
TEMPORARY HALT TO FUNDING NEW HMO'S

BY HEW
There is evidence that AAPS' resistance to

HMO's is being supported by other segments of organized medicine.
New money for HMO's has temporarily been

Sincerely,
shut off by HEW. HEW officials emphasize that there

is no change in Nixon Administration policy. Chairman P.aul Rogers (D., Fla.), of the House Health Subcommittee, plans to begin hearings on HMO bills
the week of April 10th. Kennedy will open hearings
after the ITT-Richard Kleindienst issue has been dis-
posed of. HEW's request for additional appropria-
President
tions for HMO's have been rejected by both the
Enclosures:
House and Senate Appropriations Committees.
AAPS Freedoms Programs Statement

Return Envelope

2111 Enco Drive. Suite N-515. Oak Brook, Illinois 60521
312/325-7911

(Wall Plaque Order Form)
It is made of walnut hardwood grain finish base, and a clear plastic face that
permanently preserves it. Dimensions are 11-1/4" x 13-3/4" x 3/8" thick.
Please send me a PRIVATE DOCTOR'S CODE wall plaque, for $13.50.
Check enclosed
Bill me
NAME
ADDRESS
CITI, STATE
Tear off and return to:
ZIP - - - - - Association of American Physicians and Surgeons, Inc.

2111 Enco Drive, Oak Brook, Illinois 60521

of the
Association of American Physicians and Surgeons
As a private American physician, I adhere to:
The ethics of the Physicians' Oath of Hippocrates
to which medical doctors have bound themselves

for more than 2,000 years; and
The principles of individual liberty to which America's
Founders pledged their lives, fortunes, and sacred honor.
Accordingly, I:
Cherish the free and unlimited exercise of my best
independent medical judgment solely for my patients.
Will not compromise my responsibility to my patients
by accepting money from or collaborating with government.
Guard against intrusions by government and others
into my relationships with my patients.
Trust patients to meet their obligations.
Remain dedicated to the principles that have made
medical care in America the most excellent in the world.
ASSOCIATION OF AMERICAN PHYSICIANS AND SURGEONS. INC.

312/325-7911
2111 Enco Drive. Suite N-51 5. Oak Brook . Illinois 60521
Thomas G. Dorrity. MD. President

Index No. 4
April 4, 1972
BULLETIN NO. 1-72

April 20-22, 1972
An AHEAD OF THE TIMES event for private practicing physicians

A nationwide public education campaign
will be launched.
Be part of an inspirational "first

time" grand opening ceremony.
This is your chance to help change the

course of history.
See the unveiling of a new "Private

Doctors Code."
Your choice -- on and upward to excel~

lence, or into the darkness of govern~
ment medicine.
A complete program and registration

form is enclosed. See you in
Chicago.
WALL STREET JOURNAL AD

"Now. government spends 45% of the income of all Americans!" That I s the
almost unbelievable, but true, AAPS headline that appeared in the Southwest edition
of The Wall Street Journal, March 21. A reprint of the 1/2 page ad created and
sponsored by AAPS is enclosed. Additional reprints are av.siilable.
Dynamic, informative ads placed in the public news media will perform a heavy
role in the 1972-73 AAPS campaign beamed at millions of Americans.
The exciting, history-making campaign will be launched at 8:00 a.m., April 20
during the Private Doctors Institute, Chicago.
PATIENT EDUCATION LEAFLETS NOW AVAILABLE
The all new "Facts for Patients" leaflets are now ready and the first set of
300 leaflets will be mailed to subscribing physicians within 10 days. A typical
leaflet and an order blank are enclosed.
Many hundreds of physicians will receive this exclusive AAPS educational service.
Our goal is to involve thousands. Please promote this valuable literature se~ies by
showing your sample leaflet to other physicians.
If you are not already signed up, complete and return the enclosed order blank.
Your service will begin promptly.
Sincerely,
~~-~--.~
---;-Thomas G. Dorrity, M.D.
President
Enclosures:
Private Doctors Institute Program

Sample leaflet and order blank
The Wall Street Journal ad
Index No. 6
May, 1972, Volume 26, No. 5
NATIONWIDE EDUCATIONAL CAMPAIGN LAUNCHED
,ov4!J
J1
FOR IMMEDIATE ACTION
f' f' recent Private Doctors Inst1tute
'm Ch'1AtJ<f
t.,e
cago, AAPS voting Delegates stamped unanimous
approval on a campaign plan to reach millions of
Americans.
The Goals . . . Improve and perpetuate the
world's best medical core
. . . Stop further spread of political
medicine.
An emotion packed grand opening Ceremony
set the stage for action. A capacity crowd of members and guests participated in a thrilling audio-visual presentation. The impressive central theme of the
noble history of our profession and our country was
highlighted by . . .
Our Oath "I WILL FOLLOW that method of
treatment which, according to my
ability and judgment, I consider for
the benefit of my patients . . ."
Our Ethics "A physician should not dispose of
his services under terms or conditions which tend to interfere with or
impair free and complete exercise of
his medical judgment and skill or
tend to cause a deterioration of the
quality of medical care."
A candlelighting ceremony presented by members of the Executive Committee concluded the ceremony. John R. Schenken, M.D., Omaha, observed
''The ceremony we have just witnessed is one of the
finest I have ever seen."
THE PLAN FOR ACTION
Immediately following the Opening Ceremony,
all physicians heard details of the campaign developed pursuant to a January Board of Directors Resolution. Our Plan -
fditi
IU fd QJ(f
IJ
QJ QJ
for the profession

Obtain active financial support from the
nation's practicing physicians
Organize active local AAPS Chapters and
Committees to lead the campaign
for our patients

The AAPS campaign will use all available methods of personal and mass communications:
Personal patient contact
Radio and television
Educational literature
News and feature stories
Spot radio ads
legislative action
Friendly organizations and allies
Newspaper ads
Letters to editors
Speakers bureaus
Response was immediate. Thomas G. Dorrity, M.D.,
AAPS President, led the reaction of spontaneous financial support. He said:
What
-
are These Worth To You, Doctor?

Your Practice
Your Future
Your Right to Exercise Honest, Dignified, Independent Judgment
Is It Worth An Amount Equal To ...

- 1% of Your Gross Income?
- Your Annual Liability Premium?
- Your Income Tax?
Personall}', I'm Rledging $100.00 a month for
18 months and sugge~ that you do likewise.
Let your conscience be your guide. But remember,
this may be your last chance to unite with thousands
of other physicians to save private medical care.
Unless we do this job, it won't be done.
The complete Crisis '72 Campaign Plan, Situation
Report, and "How to Start'' ideas are enclosed.
Please forward your maximum voluntary pledge so the action campaign can be implemented wthout delay. Begin your own local action campaign. Inform the public and the
profession. Sustain the world's best medical system.
Lifetime AAPS membership privileges will be awarded to all members who invest
$1,000 or more (pending final approval by the AAPS Assembly at the October sessions).
---------------- ----------'
HMO's VERSUS ETHICAL MEDICINE

In his Presidential Address, Thomas Dorrity,
M.D., stressed that many doctors I and most patients
do not understand that political medicine is bad
medicine. Dr. Dorrity said:
''The corporate contract practice of medicine
controlled by laymen is the gravest threat now
fO the practice of private medicine. The health
maintenance organization concept is 'the most
recent and saleable name used for per capita
prepayment group practice schemes, which is
corporate controct practice through politics.
Some state and local medical societies are frying to get in on these schemes as medical foundations. In doing so, they are misleading the
profession and the public and helping deliver
control of medical practice into the hands of
labor union leader politicians.
" ... The Republican Administration, as well as
leading Democratic candidates for President of
the United States, are for HMO's. This is no accident. It is the produce of years of heavily financed maneuvering by promoters of labor
union monopoly power - and compromise of
principle by unwise medical leaders. There is
only one key fO countering this threat to liberty
in the United States - understanding.
"Much deceit is being used to mislead patients
and physicians. Also, bribery, disguised as subsidies, grants, and loans, is a major tool being
used to divide opposition and build the power
of HMO's: Our task is to rip away the mask of
deceit and expose enough of the bribery so that
people who have not studied their lesson may
have sufficient understanding of this struggle for
power to do something constructive about it."
In regard to labor union leaders trapping the doctors, Dr. Dorrity had this to say:
"Attached to recent Congressional testimony of
the AFL-CIO were a number of resolutions. I
will merely give you a few quotes so that you
will understand where labor union leaders are
in relation to doctors and where compromise by
other medical organizations is leading us:
(1) 'RESOLVED: All health services should be
provided whenever possible on
a direct service basis utilizing
full time salaried professionals.
(2) Another resolution attacks fee-for-service:
'A starting point must be the recognition
that the fee-for-service entrepreneurial system of delivering health services gives the
medical and dental professions the unilateral control over their incomes. Fee-forservice is a piece-rate system in which both
the prices of each piece and the number of
pieces of services are under control of the
provider'."
Enlightening those present on the AMA position, Dr.
Dorrity said: "labor leaders h~ve used AMA to maneuver themselves into a dominant position." Continuing, he said:
''AMA's failure to cope with professional politicians is typical of failures of general umbrella
medical associations elsewhere throughout the
world. The record is clear for all to see that in
country after country where politicalized medicine has been imposed, the professional politicians have outmaneuvered the general medical
associations.
"Doctor Russell Roth, speaker of the House of
Delegates of the AMA, speaking in New Orleans in October, 1971 made it clear that he
and other current leaders have abandoned principle and intend to compromise with the labor
union politicians and take what crumbs they
can get. He said:
'The official position of the Association [AMA]
has been to more or less accept the widespread
statement that we have come in this country to
the point where the question is not whether
there shall be some form of national insurance,
but what this form shall be . . .'
11
''He admits: 'The tax credit approach rthe basis

of Medicredit], probably does not have great
viability in the House Ways and Means Committee or in Congress. . .'
"Then, he goes on to say clearly that the compromise is for money. ' . . . If you are talking
about a Federal bill which involves the expenditures of billions of Federal dollars, it is totally
unrealistic to think that somehow or another
this could be administered apart from the Federal Government.'
"He also said. ' ... Right now we know that the
Medicredit Bill stands no chance of being adopt-
ed.
II
AAPS Director, Patrick McDonough, M.D., exposed

the AMA Medicredit compromise in the Allegheny
County, Pennsylvania Medical Society Bulletin (See
March News Letter - "Medicredit - A Trojan Horse?'')
In conclusion, Dr. Dorrity said:
"Freedom has never been either cheap or easy
to keep. Tragically, there have always been those
so asleep and so ignorant that they have been
willing to subject themselves to dictation and
control. I thank God that the members of this
Association are not cut off of that bolt of cloth.
The AAPS is dedicated to saving the ethical private practice of medicine. It can be done - it
must be done, but the hour is late . . . The
time to start is now. I wish you all success and
Godspeed in this noble undertaking."
Dr. Dorrity's speech will be sent to all members.
THE PRICE OF INDIVIDUAL FREEDOM
Thursday evening was planned as an evening of
Charles B. Shuman, Former President, Amer

ican Farm Bureau Federation, Mrs. Shuman,
Dr. and Mrs. Dorrity and Mrs. Maurice W.
Peterson, at Friday Evening Banquet.
Paul W. Leithart, M.D., National Member

ship Chairman, along with Drs. Maurice W.
Peterson, Immediate Past President, T. G.
Dorrity, and Frank Rogers, AAPS Director.
A few of the many interesting

pictures of activities at the
APRIL 20-22, 1972.
J. R. Schenken, M.D., who presented his "A Worldwide View of Medicine in Art"; The Honorable John G. Schmitz,, who spoke on ''The
Price of Individual Freedom"; Robert J. Moorhead, M.D., Director of
AAPS, and Thomas G. Dorrity, M.D., President of AAPS.
Congressman Schmitz with Robert

5. Jaggard, M.D., President-Elect of
AAPS.
Dr. Dorrity awarding Mal Rumph,

M.D., AAPS Director, with a Private
Doctor's Code plaque in recognition of his years of service to the
Association.
Congressman Schmitz with Albert

G. J. Cullum, M.D., of Middlesboro,
Kentucky.
Donald Quinlan, M.D., AAPS Director, who

was presented with three awards, receiving
a plaque from Dr. Dorrity.
Congressman Schmitz with Maurice W. Peterson, M.D., !"\mediate Past President of

AAPS.
T. Dale Alford, M.D., Former Congressman

from Arkansas who presented a view of the
profession from inside Congress.
Congressman Schmitz with Dwight Mater,

M.D., from Knoxville, Iowa.
Congressman Schmitz. with Frank K. Woolley, Executive Director of AAPS.
relaxation mixed with an informative address by The

Honorable John G. Schmitz (R., Calif.). This gala
evening was held at the LaTour Restaurant, 40 floors
above the Lake Michigan shore. At a reception,
members had an opportunity fo personally meet Mr.
Schmitz and have their picture taken with him.
The California lawmaker serves on a Subcommittee of the Interstate and Foreign Commerce Committee that is currently considering legislation promoting tax-supported Health Maintenance Organizations. Mr. Schmitz said:
''The Secretary of Health, Education, and Welfare told our Subcommittee that the goal of this
legislation is to make HMO's available to all
Americans ... My own conviction is that federally subsidized HMO's is the vehicle to force full
socialized medicine upon us. We are rapidly
approaching the final battle against government-controlled medical practice in the United
States."
NO COMPROMISE WITH SOCIALISM
The past president of the American Farm Bureau
Federation, Charles B. Shuman, on the second day
(April 21st) of the national physicians' meeting said:
"Federal management of medical care will be a
failure just as is the costly and wasteful government farm program."
Mr. Shuman, a farmer from Sullivan, Illinois,
called U. S. medical and hospital care:
"Of better quality and more readily available
than in any other nation because it has largely
remained a service of the free market, rather
than being government managed.
"Socialism can only function successfully under
a dictatorship designed to prevent comparison
of the results obtained with the free market. Increasingly, the issue in America is. freedom .
freedom to risk, freedom to excel, freedom to
make mistakes, freedom to farm, freedom to
select one's own doctor. Compromise on the
issue of government management of medicine
or of farming is the road to defeat and to further losses in the freedom of each citizen to
choose."
Concisely, and emphatically, he concluded:
'When you compromise the issue dies."
WASHINGTON REPORT
Mr. Frank K. Woolley, Executive Director of the
Association, reported on government activities in
Washington. He described the Washington scene in
a few words: An auction, deceit, confusion, and
spending.
An auction - medical freedom is being auctioned
off by Presidential candidates through the varied
proposals to institute nationalized medicine in this
country. This is being given a general assist through
propaganda in the news media, medical press, and
on the radio and TV.
Deceit and spending - "We are witnessing dangerous promises to non-producers for their votes.
The plunder to pay off those political promises
is not created by political magic, but must be
forcefully taken from producers of goods and
services."
Mr. Woolley continued:
"AAPS testified strongly against increasing public spending to nationalize medicine. We hove
pointed out that Federal spending, when added
to state and local government spending, now
forceably takes away from the citizens of this
country 45% of all of their income. Thus . . .
the bureaucrats are taking 45% of what everybody earns. Accordingly, you are being forced
to pay government, directly through taxes, or
indirectly, through inflation, 2-% days work
each week of a normal week. The politicians try
to hide these facts."
Confusion - "Despite the wishes of the socializers, the legislative and political situation is
quite confused."
In this terrible confusion, people need something
to hold on to. In all of this confusion we must guide
by the stars. AAPS is the one organization that is
guiding by the stars without confusion and without
sinking into the degrading position of trying to compromise with evil. AAPS is an organization of individuals devoted to principle; with unshakeable faith in
what made America great. AAPS does not intend to
abandon its principles in a foolish effort to ''go along
with the crowd" - to conform to new ideas.
Mr. Woolley cited an example of how politicians try to soften up their constituents by quoting
Mr. Humphrey:
While conversing with Hubert, "I conceded that
it was quite a sight to behold to see how he
scrambled around to get favors from the bureaucrats for Republican constituents from Minnesota. Particularly, when they came to him for
help . . . When I said this to him, Homphrey
grinned and replied:
'Well, I may not make Democrats out of
them, but I sure file their teeth.'
"Obviously, we cannot allow Humphrey or any
other politician to file our teeth. We have got
to file theirs, and we can do it by having their
constituents back home know the truth. We can
file their teeth and keep them from destroying
the practice of private medicine in the United
States."
A WORLDWIDE VIEW OF MEDICINE IN ART
One of the highlights of the Private Doctors Institute was a slide visual presentation on Friday
morning by John R. Schenken, M.D. (Omaha, Nebraska). Dr. Schenken uniquely and adeptly not only
captured the audience with the beauty and instructive portions of his presentation, but managed to relax his audience with his dignity and quiet humor.
T. DALE ALFORD, M.D.

AAPS member, T. Dale Alford, M.D. (Little Rock,
Arkansas), a former Congressman spoke on ways
and means by which physicians can shape public
policy and opinion.
COMMITIEE REPORTS
Committee Chairmen reporting at this session
were: Legislative - Robert J. Moorhead, M.D. (Yazoo
City, Mississippi); Membership - Paul W. Leithart,
M.D. (Columbus, Ohio); Public Relations - Barney W.
Finkel, M.D. for W. M. Komanetsky, M.D. (St. Louis,
Missouri); Medical Economics - R. L. Campbell, M.D.
for Frank A. Rogers, M.D.; and SIRM 'Students, Interns, Residents and Military), Charles W. Johnson,
M.D. (San Antonio, Texas).
RESOLUTIONS
Although 13 resolutions were presented, nine
were accepted for information only and the following four were adopted: Financing of an immediate
and long-term educational program; Health care
"Negotiable Se r vi c es"; Opposition to HR-718,2
{PSRO) and Rejection of Average length of Stay
Program.
HOW TO ORGANIZE
At Seminars for Chapter Officers, detailed instructions were presented to illustrate a step-by-step
approach on how to proceed.
Four new action kits were distributed to Comittee Chairmen including: Membership Recruitment,
Speakers Bureau, Press Relations, and Legislative.
Members of the AAPS Board met with representatives
of each state to establish plans for organization uf
Chapters and action programming. Active State and
Local Chapters held separate planning caucuses.
NEW OFFICERS
It is the duty of the Delegates to nominate a
slate of Officers at the April session, to be voted on
by the Assembly at the October Meeting. The following were nominated by the Delegates: President Robert S. Jaggard, M.D.; President-Elect - Patrick J.
McDonough, M.D.; Secretary - Marie Stanbery, M.D.;
Treasurer - E. E. Anthony, M.D., and Speaker - R. L.
Campbell, M.D.
PRESIDING OFFICERS
Thomas G. Dorrity, M.D., President, presided at
the Board sessions, the Thursday seminar and at the

Banquet on Friday evening; Patrick J. McDonough,
M.D., Speaker, presided over all business sessions of
the House of Delegates; Robert S. Jaggard, M.D.,
President-Elect, presided at the President's Luncheon
on Thursday noon.
AMENDMENTS
The Delegates approved two Amendments: One
on Section 2. State Branches and the other on Article
I. Members, adding a new Section E. "Life Members."
Before they become an offidal part of the Association's By-Laws, they must be approved by the Assembly at the October session. The two Amendments
will be printed in their entirety in the August News
Letter in order that members may be properly informed of the action to be taken.
AAPS WOMAN'S AUXILIARY
Mrs. Maurice W. (Judy) Peterson of Glenview,
Illinois, is Chairman of the Woman's Auxiliary for this
year. Business sessions were held in the Sarah Siddons Walk. Friday was their busy day with Lunch at
Jacques followed by a tour of the Quaker Oats
Kitchens, and the reception and Banquet on Friday
evening.
Officers elected for the ensuing year beginning
in October were: President-Elect - Mrs. Michael (Elma)
Saxon; Treasurer - Mrs. Paul (Mildred) Leithart and
Secretary - Mrs. Robert (Helen) England.
Their project for this year is the widespread dissemination of the pamphlet series "Facts For Patients."
The ladies are presently making plans for the
Fort Worth Meeting in October and invite all AAPS
wives to attend.
SUMMARY
Summed up, it was an outstanding, inspiring
Meeting. Those who were present can attest to this:
Those who were not missed a great meeting; all
should start making plans now to attend the Annual
Meeting in Fort Worth, Texas, October 12-14.
Sincerely,
President
Enclosures: Crisis '72
Pledge Card
Leaflet series order form
DON'T DELAY - PLEDGE NOW

Read the Crisis '72 folder. Fill out the pledge card. Mail it to the Association TODAY! Let us dare to light
our candles. Put them on a candlestick and proudly hold them high. Let them shine so others may see our good
works. The facts are on our side. Let's use them.

2111 Enco Drive, Suite N-515, Oak Brook, Illinois 60521
312/325-7911
Index No. 7
June, 1972, Volume 26, No. 6
AAPS Nationwide Educational Campaign
Doctors Reject Assignments and Give Public Notice
Deal Directly With Your Patients - Medicaid
Feds Want to Control Medicine
Morals and Liberty
Membership On the Move
Manion Forum
Pinning the Blame Where It Belongs
AAPS NATIONWIDE EDUCATIONAL CAMPAIGN

Do y~u believe that individual freedom is worth
fighting for? If so, have you filled out a pledge card
to financially support the educational campaign?
(Copy of pledge card enclosed.)
The need for convincing patients that political
medicine is bad medicine is crucial. If we don't do it,
it won't be done. If we don't do it, we are in immediate danger of being forced into involuntary servitude.
Quebec doctors, through Bill 41, were forced
into involuntary servitude by a unanimous vote of
the provincial legislature (see AAPS News Letter
December, 1970). Obviously, neither Quebec patients nor physicians understood why politics and
medicine do not mix. If they had, some members of
the legislature would have opposed such dictatorial
oppression of a noble profession. Involuntary servitude on a more gradual basis could happen here unless we offset the confusion in our patients' minds
created by vast and heavily financed campaigns by
politicians, labor union leaders and other government agents.
Individual freedom everywhere, not only in
medicine, is at stake. It is urgent that you act now
to save your freedom.
LOUISIANA PHYSICIANS REJECT
AMA MEDICREDIT LEGISLATION
"The House of Delegates of the Louisiana State
Medical Society voted overwhelmingly to reject Medi-
credit and all such proposals for national health

care . . ." Also, "Peer review or claims review . . .
has been overwhelmingly rejected ..." according to
Mike Smith, M.D., a member from Thibodaux, Louisiana. A poll of all Louisiana physicians also shows
that over 75% of the respondents answered the
question "Do you feel that at the present time the
AMA is representing you and your views?" with an
emphatic - No. The poll was answered by 596 physicians and tabulated by Nichols State University.
The poll of the Louisiana doctors accompanied
a complete report of discussion about Medicredit before an AMA Reference Committee in New Orleans,
Louisiana in October. Included with the poll was a
complete transcript of everything that was said.
Doctor Roth, in arguing for the Medicredit Bill
before the Reference Committee, among other things
stated, "I think it is important to realize that the
Medicredit Bill was not arrived at rapidly or lightly
and without consultation. The seeds of the Medicredit Bill were deep in the midst of the American
Medical Association as for back as 12 years ago
when some of us were working on the concept ..."
Doctor Smith has pointed out that "Dr. Roth,
Speaker of House of Delegates and the next unopposed candidate to be president of the A.M.A.,
states in plain and clear language immune from misinterpretation, that he is one of a small group that
has worked in the A.M.A. for twelve years to bring
about federally controlled medical practice in this
nation. Mind you this dates back to a time prior to
even the passage of the Kerr-Mills bill."

Listed below are the headlines of the various
articles appearing in the report to the doctors in
Louisiana, Medicredit Bill Goes to Congress/ AM.A.
Doctors Not Consulted:
"Transcript of Testimony" (at the AMA Meeting in New Orleans)
"Roth Says AM.A. Cannot Speak for Everybody"
"Facts About HR 4960 (Medicredit)"
"Roth Doubts Sponsors Have Read Medicredit
Bill"
"Does the AM.A. Represent You?"
"Medical Opinion Poll"
"Editorial Comments on Testimony"
A copy of the report of AMA's promotion of
Medicredit can be obtained by writing the Special
Projects Chairman, Lafourche Parish Medical Society,
P. 0. Box l 037, Thibodaux, Louisiana 70301.
[Editorial note:
In 1970 AMA fostered Peer Review as part
of Medicredit legislation to control doctors see AM News July 27 and December 14, 1970.
We said then AMA was wrong. Now, AMA's
Council for Medical Service will warn delegates at the San Francisco Meeting of this danger. Pray it isn't too late.]
DOCTORS REJECT ASSIGNMENTS
AND GIVE PUBLIC NOTICE
ical care, and we will be glad to explain our

position to any interested patient.
Ted H. Fortmann, M.D.
Carroll Hoisted, M.D.
F. C. Lattimore, M.D.
Ray V. Mcintyre, M.D.
Paul J. Ottis, M.D.
Thomas R. Stough, M.D."
DEAL DIRECTV WITH YOUR
PATIENTS - MEDICAID
Commenting on the same subject, Doctor Robert
S. Jaggard of Oelwein, Iowa says "I question the efforts of many people to get approval for direct billing under Medicaid. I direct bill ALL my patients, and
what they do to get the money which they use to
pay me is their business. If they want to gamble,
steal, rob banks, not grow corn, or work, that is their
privilege." "I do not get involved in ... whether or
not the patient could be or would be reimbursed from
Medicaid for my bill." "ALL of that is the patient's
responsibility. If the doctor gets involved in the patient-government relationship then the doctor has no
gripe coming when the government enters the patient-doctor relationship."
"We must insist on a moral course of action, not
try to get the lesser of two evils, because, the lesser
of two evils is still evil."
The following article by John Carpenter is
quoted from the Ledger, Montrose, California.
FEDS WANT TO CONTROL MEDICINE
The following appeared in the Kingfisher County,

Oklahoma Free Press recently:
''PUBLIC NOTICE
"Because of a continuous increase in government rules that hinder good medical care, the
members of the Kingfisher County Medical Society have joined in a decision not to take assignments from Medicare, Welfare, or Medicaid.
That is, we will not send bills or claims to these
agencies. We shall continue to do our best to
provide necessary medical service to everyone,
but we believe the people should deal directly
with the agency for their benefits. We know that
a personal understanding of both parties' responsibilities is needed for dignified, quality med-
In this day of enlightenment in the field of personal rights, it is always perplexing to discover an
effort to reduce personal freedom. Yet, we are told
that the medical-dental field should be strictly controlled - in the interest of freedom, of course.
Socialized medicine is a term that stirs people
to immediate action, as sure and as quick as a stink
bomb in a library. And just as certain to cause an
argument.
Medical men very justifiably are proud of their
profession, of the progress it has made, of the service it offers. They have each worked hard to achieve
the right to the medical degree they cherish, and no
one argues that there is a short and easy pathway
to becoming a doctor. Or a dentist. They are stalwart champions of free enterprise. They risk their all
on the excellence of training, on the quickness and ..

accuracy of their minds and the skill of their hands.
For the most part, they ask no favors, no subsidies,
and pay their own way.
As the result of their skill, they are successful in
the eyes of other men, and as always is the case,
there are those who would share their success. Today, in Congress, their profession is under attack.
The politicians want to impose on medicine certain
controls. Viewing "Quality Medical Care" in the
United States, medical men have termed it "on the
brink of disas.ter."
Medical-dental men over the years have been
viewed with envy by others, because those who work
enjoy varying amounts of affluence. They fill a need,
they sell their services for a fee, and they enjoy the
fruits of their labor. Yet, the path that has been
open to them is open to most other Americans - it
is a pathway to success for those who will make the
effort to follow it. Those who have the opportunity
and fail to use it should have no control over those
who seized the opportunity.
Speaking of proposals for socialized medicine,
one doctor said, "In order to assure the necessary
regulation and control, legislation has been introduced in Congress under the treacherously innocentsounding designation of peer review. Designed to
accompany or to supplement the various national
health insurance bills, the Machiavellian masterpieces
provide for committees of physicians, under the direction of HEW, empowered to veto your doctor's decision to hospitalize you, to impose limitations on the
length of your hospital stay, and pry into your medical records in order to police your personal physician. The planners feel that policing mechanisms are
essential to prevent over-utilization of available resources. In other words, manuals of government rules
and regulations, rather than your doctor's judgement,
will dictate how much and what kind of medical care
you will receive."
With the strict controls over medicine will come
wholesale retirement of doctors at an early age,
aggravating an already critical shortage. Young
people will seek other fields where the personal sacrifice is less, and where the highly-skilled individual
is something more than a civil servant. The shortage
will be filled, in part, by a new breed of sub-physicians who will be called upon to treat and diagnose
after only two years of training. And suddenly, the
patient - the celebrated "consumer" for whom so
many tears are shed - will get the worst of it.
Justification for this program of confiscation,

slavery and eventual mediocrity is the cost of medical care today. The reason for this spiral of cost is
not the aV'Orice of medicine, but government itself,
where rampant spending has brought rampant inflation. Federal interference has raised the cost of
hospitalization, where 70 per cent of the patient's
bill represents the services of labor. The crisis tha!
faces us around every corner is engineered by
government, where control begets control, and control destroys free enterprise.
You would consult your doctor if you were ill.
Perhaps you should consult him in the face of a
great national ill that would rob him of freedom and
you of quality medical care.
MORALS AND LIBERTY
"To many persons, the Welfare State has become a symbol of morality and righteousness. This
makes those who favor the Welfare State appear to
be the true architects of a better world; those who
oppose it, immoral rascals who might be expected
to rob banks or to do most anything in defiance of
ethical conduct. But is this so? Is the banner of morality, when applied to the concept of the Welfare
State, one that is true or false?"
After raising this question, F. A. Harper, in an
18 page pamphlet, poses five fundamental ethical
concepts as posulates, by which to test the morality
or immorality of the Welfare State. They are the
ethical precepts found in the true Christian religion
- true to its original foundations - and they are
likewise found in other religious faiths, wherever and
under whatever name these other religious concepts
assist persons to perceive and practice the moral
truth of human conduct.
State Chapters of the AAPS are encouraged to
distribute copies of the booklet and stimulate discussion as to how this applies to taking assignments
and accepting "benefits" from the Welfare State.
Copies of Morals and Liberty are available from
the Institute for Humane Studies, Inc., 1134 Crane
Street, Menlo Park, California 94025, - single copies
free; 10 copies, $2.00.
MEMBERSHIP ON THE MOVE
For the quarter ending March 31, new member
applications received at AAPS Headquarters were
almost double the record years experienced in 1970
and 1971.
Overwhelming evidence is now available that

thousands of practicing physicians are seeking a
medical organization dedicated to the principles that
will improve and perpetuate private care - the
world's best system.
More services and benefits by affiliating with
AAPS have caught the attention of non-member
physicians.
The Crisis '72 educational campaign, launched
in April of 1972, the Private Doctor's Code (another
first within the profession) and the Facts for Patients
literature series are a few examples. The new AAPS
catalogue published in April lists approximately 140
services and publications available to physician members.
In January, the Board of Directors adopted an
ambitious membership growth quota - a 50%
growth in 1972 - by far the largest quota in recent
years. We will achieve this quota if AAPS members
renew recruitment efforts, personal contact is most
effective. Ask your colleagues to become AAPS members. They will benefit and you will have performed
a valuable service for your profession.
MANION FORUM
The case against socialized medicine was recently aired over the Manion Forum Network by
Maurice W. Peterson, M.D., former President of the
Association.
PINNING THE BLAME WHERE IT BELONGS
Recently a member of Congress was written the
following letter:
In this year of confused political campaigning
you may be interested in the views of one back-home
voter.
I will eagerly vote for any candidate, regardless
of party, who swears he will work to reduce the gigantic bureaucracy.
Yours very truly,
C. Keith Barnes, M.D.
Fort Worth, Texas
Begin now. Promote the benefits of AAPS. Be

positive. Emphasize that AAPS is a major national
medical organization. Tell them about the Lloyd's of
London Malpractice Liability Plan and the new Hospital Money Insurance Program. Avoid abrasive or
~
negative statements. AAPS is a positive organization.
Your appeal should also be positive.
-----
Sincerely,
~_ ~
Emphasize that you will sponsor your colleague's

membership. Complete the application form, then
arrange to have it mailed to the AAPS Headquarters
Office. Arrange for follow-up. Your second or third
contact may produce the desired results.
AAPS is ready to help. We can provide lists,
secretarial help, literature. Many physicians have already produced outstanding results this year with
letters and personal contacts.
Build AAPS - the professional partner of practicing physicians.
=-::,- --. ~
\

President
Enclosures: Crisis '72 booklet
Crisis '72 pledge card
Notice of Nomination of AAPS Delegates
"A New Tool to Win Friends"
Tape Cassette Order Form - Reply Card

'2111 Enco Drive, Suite N-515. Oak Brook. Illinois 60521
312/325-7911
Index No. 8
July, 1972, Volume 26, No. 7
Students Contribute to AAPS Educational Fund
Kennedy-Mills Manifesto
Informed Citizens Oppose Political Medicine
AMA Annual Meeting -
Setting National Priorities
Change AMA - Stop Compromising Private Medicine
STUDENTS CONTRIBUTE
TO AAPS EDUCATIONAL FUND
June -
San Francisco
June 17, 1972, to adopt the principle that:

" . . . regardless of income . . . or any other
The Student American Medical Association, Uni-
factor ... the federal government should as-
versity of Minnesota Chapter, sent us a sizable con-
sume this responsibility [of assuring every
tribution stating:
American comprehensive health services from

the day he is born until the day he dies] by-
"It is the feeling of our Board that in consid-
Eatablishing a system of compulsory na-
eration of your good work in alerting Medical
tional health insurance."
Students to the benefits of private-practice
(See Congressional
1972, p. S 9982.)
medicine and to the dangers of government
Record, June 22,
inte.rvention, it is appropriate that we make

this donation to your educational fund ..."
Mr. Kennedy has been the main figurehead

through which this ideology has been promoted in
recent years. However, Mr: Mills has appeared, until
"Sincerely,
David M. Lam"
now, to be reluctant to espouse such a radical program to destroy the U.S. basic system of individual
responsibility. The main point of attack on individual
KENNEDY - MILLS MANIFESTO
responsibility designed to win an unsuspecting public to accept political medicine has been the COST
These two politicians in powerful legislative
OF MEDICAL CARE. Politicians say costs of medical
positions asked the Democratic Platform Committee,
care are too high for individuals to afford. The truth
is the cost of medical care is not prohibitive, but the
tation of "The Life of Christ'' as depicted in the works
cost of government is the real problem. The absurdity
of famous artists.
of blaming doctors comes into sharp focus when it

is realized that the gross income of all doctors for
medical services before expenses and before taxes
is less than l %% of the total income for everyone.
But that political spending through government is
over 45% of the income of everyone. (See Current
Survey of Business - Department of Commerce.)
Mr. Kennedy's scheme, which apparently Mr.
Mills is embracing for political reasons, arrogates
responsibility to the federal government for the
health care of everyone, which would cost at least
$2,000 per year for a family of four. When this incomprehensible ex!)enditure is added to other spending schemes, now approved by Congress, politicians
would take approximately 55-60% of everyones' income for government.
The AAPS panel explained to the large patriotic

assembly ...
. . . that the medical principles which we
espouse underlie the success of the United
States and Western Civilization;
... that they are for the private practice of
medicine on a fee-for-service basis, without
. compromise;
. . the reasons that political medicine is
bad medicine;
. . . that the United States system of private
fee-for-service medicine has made available
the highest quality medical care for more
people than in any other country in the world.
The public doesn't understand this colossal

fraud. Physicians dedicated to the practice of private
At the conclusion of the presentation, roughly
medicine cannot afford to let the politicians go unchallenged.
half of the audience filled out an AAPS opinion

survey on nationalized medicine. The respondents
were unanimous in their opinions that:
What To Do
1. Federally financed medical care should
1. Get your colleagues in your local medical
societies to understand this development.
2. Also, get your patients to understand.
(Write us for AAPS' Facts for Patients literature, which helps counteract such at. tacks.)
INFORMED CITIZENS OPPOSE POLITICAL MEDICINE
One of our most pressing tasks is to project the
truth of our medical principles to ordinary Americans
- and make understanding allies of them. That is
why several of our members on July 3rd addressed
the New England Rally for God, Family, and Country.
After hearing our presentation many hundreds
of patriots from throughout America volunteered to
help our cause. Following a two hour panel presentation on ''Medical Issues and Answers" by Doctors
Thomas Dorrity, Robert Moorhead, Paul W. Leithard,
not be expanded to include all Americans

of all ages, regardless of need;
2. The federal government should not intervene in the financing of medical care
on a bit-by-bit basis, paving the way to
socialized medicine;
3. The voluntary, willing-exchange fee-forservice of private medical care should not
be changed by federal government standards that financially favor cooperatives
and group medicine (such as HMO's);
4. Medical societies should not become fed-
eral policemen paid to control patients,

hospitals and doctors by enforcing terms
for hospital admissions, length of stay,
discharge, diagnoses, and treatment in
or out of hospitals.
Robert S. Jaggard, Donald Quinlan, and Mr. Frank
Many respondents said they would ask their
Woolley, Dr. John Schenken gave a slide presen-
own doctors what they are doing to help stop
political medicine and then try to enlist them in our
of control over graduate medical education to gov-
cause. Many agreed to host a "coffee" in the near
ernment; failure of the Board of Trustees, despite re-
future to inform their friends and neighbors why
peated requests of the House of Delegate~. to spend
political medicine is bad medicine. And much larger
AMA money to expose the high cost of public med-
numbers of the respondents said they would write
icine compared to private medicine; and contrariwise,
their congressman and senators, send letters to the
the extravagant financing by AMA of "Quality of
editors of their local newspapers, and distribute our
Life" Congresses and Seminars which downgrade
literature prepared for patients.
individual and family responsibility, while promoting
This Association needs more platforms like the

God, Family and Country meeting. If any member
knows about such speaking opportunities, he should
increased government responsibility, with huge additional public spending.

Graduate Medical Education
inform the national office so that arrangements may

In a far-reaching action, the AMA Board of
be made.
Trustees recommended, and the House of Delegates

Loyal Americans will understand and act on the
truth if we present it to them.
approved after lengthly debate, "t!,e formation of

a new body to have jurisdiction in that [graduate
AMA ANNUAL MEETING --
medical education] area." The new body is "the
JUNE - SAN FRANCISCO
Liaison Committee on Graduate Education." This

Committee would "consolidate existing accrediting
The Meeting was dominated by "confusion." It
activities . . . under a single . . . agency for recog-
demonstrated that although AMA was originally or-
nition by the United States Commissioner or Educa-
ganized by private practicing physicians, it is not
tion." (The Commissioner is a functionary of the U.S.
now a partisan advocate of the private practice of
Department of HEW; also, HEW would be on the
medicine, although most of the profession and public
Committee.) One delegate reported:
believe that it is. Rather, it is a complicated organization (including government agents) through which
"The net result of the creation fof this commit-
medical and non-medical conflicting interests fiercly
tee] is to place graduate education in the
and subtly struggle for power frequently putting be-
hands of an outside group controlled by
lievers in private medicine on the defensive. It is on
government directly or indirectly through
arena in which those interested in government subsidy
federal subsidy of the 'representatives.' The
and control often exert more pressure behind the
entire graduate medical education program
scenes than doctors who oppose political medicine.
in the United States, which has under its

jurisdiction the training programs and certi-
Powerful forces (government and government

supported) use this arena to grind their axes. The
confusion often keeps AMA ir:i a stalemated position
and, therefore, inhibits it from forthriglitly presenting
the case for private practice.
fication for 75,000 physicians, will now be

in the hands of agencies, other than the AMA.
These will determine who, by whom, when,
where, how long, and how many physicians
will be trained in the medical specialties and
Delegates, primarily interested in fee-for-service-
what the curriculum will be. It was admitted
private-medicine, were squeezed hard at this Meet-
by a representative of the Council on Medical
ing by forces working cleverly to advance ideas in-
Education that this was 'forced' upon AMA
imical to free enterprise medicine.
by the United States Commissioner of Education."
A look at some of the more important actions at

San Francisco sheds light on the conflict, maneuvering
It is extremely difficult to accurately and briefly
and confusion. Important actions inr.luded: AMA loss
describe the reports of the Board of Trustees, reports
of the Councils, Committees, and the hundreds of
between private and public medical care pleading
resolutions acted upon by the delegates which con-
that AMA lacked data and could not afford the
stitute a notebook approximately three inches thick.
$30,000, or more, for a "field study" to see if data
Even the delegates did not see much of the material

before they arrived in San Francisco on the day the
were available; or, the $150,000 that might be needed to conduct the study. (See Trustee Report C and
House of Delegates began deliberations. However,
House Requests For Action in 1969 and 1971. Note:
you can get a glimpse of what happened by the fol-
AMA spends annually in excess of $33 million.) Inci-
lowing ''Medical Education" episode.
dentally, it was testified before the Reference Committee that data for such a study were available. The
Council on Medical Education
House directed the Board to report on this at the
The power structure in AMA is built around the
1972 meeting this fall. In the meantime, the false-
Board of Trustees, the various Coundls, the Commit-
hood about the cost of private medicine floods the
tees, and particularly the America,., Polit;cal Action
electorate, unanswered by the kind of a study need-
Committee all of which are substantially influenced

by staff. Much maneuvering goes on to elect members
ed to help spike the guns of propagandists.
on the various Councils and Committees to represent
"Quality of Life" And Declaration

Of Interdependence
particular points of view The Board of Trustees orovided the delegates with a curriculum vitae of the
While the Board maintained it could not afford
people it nominated for various offices. For example:
such a critically needed comparative cost study,
The Trustees gave considerable bac.kground infor-
it was authorizing much costly activity undermining
mation on a candidate for th~ Council on Medical
our free choice, individual responsibility system, such
Education but ommitted any mention of his connection
as the Congresses and Seminars on the "Quality of
with HEW. Actually, the candidate is now, and was
life." First, a Congress was sponsored by AMA on
then, the Administrator of the Health Services and
this subject in Chicago, March 22-25, in cooperation
Mental Health Administration (HSMHA) of HEW
with 57 other agencies. Second, a Seminar at San
which "gave" AMA $250,000 of the taxpayers' money
Francisco involving some 500 people was sponsored.
a few days before the meeting. It has many thou-
Also, two more such Congresses are scheduled to be
sands of employees with many ''services" - and
sponsored by AMA.
"branches." One division exercises direction and control over the "Health Maintenance Organization
Service" which is pushing for per capita-prepaidgroup-practice subsidized by government - an important vehicle for nationalizing medicine in the
U.S. Yes, the candidate was re-elected to the
Council on Medical Education continuing a highlyplaced federal official in a strong position of power
in AMA. The administrator has been active for years
in the American Assodation of Medical Colleges,
which strongly favors government subsidization of
medical education.
Out of the "Quality of Life" Congress in March,

AMA staff developed a controversial "Declaration of
Interdependence" to celebrate the bicentennial of
our nation's Declaration of Independence (Shades
of 1984). This utopian declaration commits AMA to
"an interdependent effort to achieve for each American child his basic inalienable right: A life of
quality." It speaks also of "beginning a new interdependent relationship among
all
governmental
social, welfare, health, educational, religious, and

legal agencies." It indirectly provides a blank check
basis for unlimited expenditures and interference
by goverment in all activities regarding children,
Reluctance To Expose High Cost

Of Government Medical Care
The Board of Trustees at San Francisco recom ..
mended again against a comparative study of costs
saying without reservation, "the nation's highest

priority should be its children." (See following article "Setting National Priorities.")
The Reference Committee Hearing
011
this res-
olution brought to light that most State Medical

Societies
had
been requested
by AMA, through
Past-President Doctor Bornemeier, to pass a resolution
HEW), and other highly placed officers and staff

are deeply interested in the "Quality of Life." (See
the following article.)
on child care under the title "A Declaration of Interdependence," also, that many staff long-distance
SETTING NATIONAL PRIORITIES
phone calls urged states to pass identical resolutions.
It may be a coincidence, but the current hudget
Five states finally did (Resolution 118), although the
of the federal government for 1973 calling for many
action was taken in some states witho,Jf the state's
billions for "child care" through dqy-care centers
house of delegates approval. Other states refu;;ed
is promoted in a Brookings Institution Report on
to comply with the unusual request or ignored it.
Setting National Priorities. Also, in it is a chapter

on "Health Insurance." This contains the distilled
Also, the (Quality of Life) seminar at San Fran-
propaganda of the Department of HEW on this
cisco was told seriously by Gerry Lama, Ph.D., that
subject. It declares, "In recent years, society has
''sin" did not cause venereal disease but that "germs"
come increasingly to the view that adequate medical
did! He blamed the current rash of venereal disease
care is the basic right, neither to be denied nor to
on refusal of the medical profession to recogriize
be treated as a charity to those who are poor."
that "health care is a right." He said, "Why is valva-
The chapter on ''Child Care" explains that the respon-
ble preventative information being withheld from the
sibility of parents for their children is being chal-
public and confusing moralism put forth? We have
lenged and some advocate that government should
the technical resources to bring VD under control.

Yet . . . the unresolved conflict remoins between
take over this responsibility. "It would cost $28 billion, even if one-third of them [ children under 6]
humanitarian and organizational mores. Humanitar-
did not participate." If anyone wants to gain under-
ian mores hold that health care is a right, and the
standing of why AMA is being used as a part of
primary purpose of all health resources is the main-
the transmission belt to give a blank check to priority
tenance of the health of all the people. Organization-
for children; see Chapter: 8 of the Brookings Insti-
al mores hold that health care resources are private
tution Report, pages 252-290.
property to be sold to only those people who can

afford to buy them operated primarily for profit. It
is this social value and the processes growing out of
it which is the primary barrier to VD control."
For example, the report discloses that "a flnal

argument for free and universal day-care is made
by advocates of high-quality programs for smali
children who believe that the only way to build
political support for such programs is to extend ihem
It could be that part of AMA membership losses

are attributable to giving a forum for such phil
osophy and beliefs at members' expense.
to all income groups." It then goes on as follows,

"Representative Shirley A. Chisholm has put the
case in this way," etc.
Also, harmful statements were made at 1he
From the foregoing, some think that AMA is over
Quality of Life Seminar by others, such as a repre-
its head in its innocent-appearing "Quality of Life"
sentative of the American Public Health Association,
and "Declaration of Interdependence" actions.
which is strongly on record for nationalized medicine.
CHANGE AMA - STOP COMPROMISING

PRIVATE MEDICINE
The House of Delegates referred the "Declaration of Interdependence" to the Board of Trustees
Doctor Frank Rogers of Whittier, California,
for study. However, this is probably only a sample
and Doctor Thomas Parker of Greenville, South
of what AMA might do, since AMA Special Assistant
Carolina, testified in a meeting to hear recommenda-
to Executive Vice-President, Effie Ellis (formerly of
tions for improving AMA.
Doctor Rogers said: "The real challenge and
Summing up, he said, "For these reasons the
threat to organized medicine is 'government.' we
AMA must decide to be for professional freedom or
must stop straddling the fence. We must draw the
indifferent to it; to be for fiscal solvency or uncon-
line. It is an established principle that 'government'
cerned about it; to be for local autonomy or federal
employees, through stiffling, enervating, minute rules

and regulations, crudely, wastefully, and arbitrarily
authority; to be for personal integrity and selfdispline or for external control." Finally, "AMA
control any activity financed through government

schemes."
should establish a Council of Private Practice to

oppose governmental provision of medical care for
the nation, under whatever name, and undergird it
Doctor Parker pointed out that "AMA, as an

umbrella organization, manifestly could not speak
with determination that nationalization is not inevitable so long as doctors will not have it so.
for all physicians on economic matters because of

sharply conflicting views." Explainir.g, he said: "Most
of the profession in the practice of private medicine
on a fee-for-service basis desire professional freedom
Sincerely,
and non-interference from third party payers, which

means primarily government. Conversely, many on
salary, engaged in teaching or research, or working
for labor unions, for example, side with their
employers, favor federal subsidies and ignore the
economic and political facts of life that accom-
President
pany such federal involvement. On principle, these

positions are irreconcilable -- only compro'11ise of
principle is possible, and as Immediate Past-President of the American Farm Bureau Federation,
Charles Shuman, says: 'Experience shows you cannot
win by compromising principle -- the issue dies
P.S. A new book entitled Hazardous to Your Health,
when you compromise.'" Continuing, Dr. Parker
which makes the case against National Health Insur-
said: "The principles involved are:
ance, is now available. If not available from your
(1) That individual freedom and responsibility are based upon limiting governmental
authority.
(2) Making medical and related economic
decisions on political grounds does not
lead to scientific excellence bec::a\Jse pol-
local books.tore, it can be obtained from the author

for $10.45 (includes $.50 postage).
Address:
Marvin Edwards (Author)
1029 United Founders Tower
Oklahoma City, Oklahoma 73112
itical decisions are based on popularity

and compromise, while scientific decision,;
are based on uncompromised truth -whether popular or not."
Enclosure: Leaflet series order form.

2111 Enco Drive. Suite N-515. Oak Brook. Illinois 60521
312/325-7911
Index No. 9
August, 1972, Volume 26, No. 8
AAPS Annual Meeting Program, October 12-14, Fort Worth, Texas
Health Maintenance Organization Act of 1972 (S-3327)
Fee Fixing
How Third Parties Can Set Practice Patterns
If You Compromise - The Issue Dies
Medical Student . . . Family Doctor . . . Citizen
Amendments to By-Laws and Resolutions
1972 Republican National Convention Committee on Resolutions (Platform)
ANNUAL MEETING PROGRAM

Regardless of who wins the Presidency in November, the practice of private medicine will face
dangerous political problems in 1973. Would you
like to know the inside story about the Kaiser-Permanente Plan? Health Maintenance Organizations?
Medical Foundations? - Meet me in Fort Worth
where these subjects will be discussed by the most
outstanding experts who are NOT trying to compromise the practice of private medicine. These "experts" are: Drs. Robert Raskind, Robert Sade and
David Allan.
What are the prospects for conservatism in the
GOP? The Democratic Party? How will this climate
affect medicine? Would you like to participate in
asking questions about these subjects? Meet me in
Fort Worth - your questions will be answered by the
following "experts" - M. Stanton Evans, Dr. Gaylord
Parkinson and Congressman John R. Rarick.
Would you like to hear a former Cabinet member in the Eisenhower Administration, who now
understands thoroughly why political medicine is
bad medicine, discuss where we are and what we
can do about it? Former Secretary of Agriculture,
Ezra Taft Benson, will be our featured speaker at
the Friday evening Banquet.
Would you like to know what inflation means to
you and what you can do about it? Would you like
to know some of the history of Texas under Six different Flags? Would you like to go to the Texas-Oklahoma Football Game? Would you like to know how
to recruit members and organize Chapters to more effectively protect the practice of private medicine?
Would you like to see a brilliant series of slides
about the Life of Christ as Portrayed by Great Artists? Meet me in Fort Worth. These "experts" are:
Captain Kenneth Ryker, Six Flags Over Texas, and
John R. Schenken, M.D.
FIESTA NIGHT
Thursday evening, October 12th, has been set
aside as an evening of fun for members, their wives
and guests to enjoy in Mexican style. The setting is
the Shady Oaks Country Club in Fort Worth with a
Mexican dinner complete with mariachi musicians.
RESERVATIONS
Fill in and mail the enclosed reservation card
(along with your $25.00 check for registration fee)
IMMEDIATELY - especially those requiring tickets to
the Texas-Oklahoma Football Game at the Cotton
Bowl - Dallas on Saturday, October 14th. It is also
~portent that xou make your travel arrangements
NOW because of the heavx football influx exRected
in the Fort Worth/Dallas area at that time.
HEALTH MAINTENANCE ORGANIZATION ACT

OF 1972 (S-3327)
This Kennedy Bill is on the Senate calendar for
consideration. Under this scheme, taxpayers' funds
would be used, for example:
1. To finance a labor union sponsored organization to acquire a hospital;

2. To run an extensive recruitment campaign
for enrollment of , patients using federal
bureaucrats who would saturate the media
with glowing promises to everyone;
3. To make phone and house calls directly contacting everyone in an area so that most of
the people would join.
Then, with large numbers of patients enrolled in the
contract practice scheme, salaried doctors would be
subordinated to union functionaries. The organization
would be paid a fixed fee for every enrollee in advance of request of services. The organization would
be permitted to keep everything it did not spend for
patient care. Thus, an incentive is automatically provided for rationing medical services. Employees, lay
or medical, would judge whether patients should be
hospitalized, for how long, etc. This would induce
unions to go further into the medical care business
and receive payment for delivering the least possible
amount of care. Does this sound like the farm program for paying farmers not to produce food and
fiber? Does this sound like it would improve tbe. doctor patient relationship? Would this strengthen col
lectivism and weaken individualism? Doctors who believe in the practice of private medicine could not
conscientiously participate in such schemes and would
be hard pressed to compete with them.
WHAT TO DO
Write your Congressman or Senators.
Ask for Senate Report No. 92-978, dated July
21, 1972.
The foregoing brief description is not in the
Report in so many words but if you will look behind
the double talk, it is all there.
Act now to get everyone in the profession, your
local medical society and local non-medical organizations to work together to block this obvious
attempt to destroy the practice of priv,ate medicine
in the United States. ACT NOW!
IMPORTANT FACTS
Labor unions consist of less than 25% of the
civilian labor force of the U.S.
1971
82,896,000
1968
Civilian Labor Force
78,737,000
Labor Union Members
N.A.
19,297,000
Source: Statistical Abstract of the U.S., 1971
pp. 210 and 233.
FEE FIXING
Aetna Life and Casualty Insurance Company
has been notifying patients that if a physician bills
a patient for a fee larger than that fixed by the

Company, it will help defend the patient in court
against action by the physician. This question involved the longest and most heated discussion of any
item that came before the House of Delegates of the
AMA at its most recent meeting in San Francisco.
Physicians expressed bitter resentment about this
procedure and its ill effects on the physician-patient
relationship. It is indeed strange that during all of
this discussion Blue Shield, which is doing the same
thing ("Hold Harmless Clause"), was only casually
mentioned in connection with this threat becciuseit
was stated that Blue Shield had obtained prior approval of its fixed fees by a Peer Review Committee.
The real issue was fee fixing by third parties (Aetna,
Blue Shield, Peer Review Committee, PRO, PSRO, or
any other). This fact was either intentionally ignored
or poorly understood. The Reference Committee recommended "that wherever peer review mechanisms
exist it is essential that third parties make use of
them and correspondingly the medical profession
continue to support the development of peer review
mechanisms." During the lengthy debate it was
brought out that the so-called "Hold Harmless
Clause" reads:
"In the event that you enter into prior agreement with your physician for a fee in excess of
the fee deemed reasonable by Blue Shield the
Plan will not accept liability for the excess
amount either under the basic or supplemental
program."
Dr. John R. Schenken (Omaha) was successful in
adding the following Resolve:
"RESOLVED that the AMA remind physicians that
they have the right to enter into prior agreement with patients regarding the fee for services to be rendered."
Daniel W. Pettengill, who has been in the forefront for a nationalized medicine program devised
by the insurance industry, attended the Meeting in
San Francisco and seemed quite contrite about
Aetna's abrasive action. Some Delegates characterized Aetna's action as intolerable s,aying "we don't
want a war with Aetna but if ,a war cannot be avoided, we are ready." Such an attempt to deny physicians the right of private contract might well be the
basis of class action suits.
Despite Aetna's conciliatory attitude at the AMA
Meeting, it since has been reported in Medical
Economics for July 17, 1972 that:
"Aetna will stand its ground. That's the upshot
of the conflict at the recent AMA meeting over
Aetna's policies regarding doctors' fees. Both
the AMA and Aetna endorsed peer review as
the means of heading off fee disputes. If that
fails., Aetna said afterward, and a doctor sues
to collect a fee that exceeds its allowable one,
Aetna will aid the patient."
The complete story entitled "The Aetna Controversy appears in the July, 1972 Harris County (Texas)
Medical Society Bulletin, 400 Jesse H. Jones Library

Building, Houston, Texas 77025.
HOW THIRD PARTIES CAN SET PRACTICE PATTERNS
In the June 30, 1972 issue of Patient Care, there
is an interesting article in the Editor's Corner under
the title listed above.
Since World War 11, Japanese physicians have
been educated in American-style medical practice
but their ability to deliver ongoing care to their
patients is hampered by the Japanese health insurance system. Doctor after doctor commented sadly
that "the patient waits three hours to see the doctor
for three minutes." Then patients spend several more
minutes in line at the dispensing window to pick up
medications prescribed during that three-minute visit.
A premium is placed on administration of drugs
with very little value being placed on professional
skills. As a res.ult, private practitioners are forced into patterns of care that correlate with insurance reimbursement. Remuneration for medical care is given
in the form of point tariffs. Each point represents a
certain number of yen and, similar to a relative value
schedule in this country, various services are assigned
a specific number of points. In general, the doctor receives a low number of points for his professional
skills as represented by the time he spends with the
patient. Instead, he has to gain the bulk of his income
from dispensing drugs, giving injections and providing lab and X-ray services ... the doctor in private
practice received more than 50 per cent of his medical care points per day per patient for administration of drugs and less than 20 per cent for his examination time.
This system not only forces the doctor into patterns of practice that conflict with his training and
his basic desire to help people, it also encourages
patients to go from doctor to doctor and from clinic
to clinic in search of more, better or different medications. It has weakened the confidence of the patient
in the doctor as a diagnostician and as a counselor
in dealing with the multitude of psychosomatic problems that arise in any highly industrialized society
today.
More apparent is the level of physician unhappiness with the present system. Private practitioners and
hospital doctors want to find ways to spend more
time with patien.ts (if they can be paid for doing so)~
The Japan Medical Association is engaged in a constant battle to gain not only upward revisions of the
insurance payments, but also a more rational allocation of points with greater emphasis on professional
techniques.
The lesson for American medicine is clear: Thirdparty reimbursement programs do establish patterns
of practice - and not necessarily good patterns.
Doctors are human and tend to succumb to patterns
that they don't believe in because the alternative
struggle everwhelms them; once government has
established a program for payment for medical care,
the program is extremely difficult to change.
IF YOU COMPROMISE - THE ISSUE DIES

Charles B. Shuman, Immediate Past President of
the American Farm Bureau Federation, (AAPS Private
Doctors Institute Banquet, April 21, 1972), presented
many sound reasons why compromise of principle, in
the practice of private medicine by accepting government subsidies, will not work, because:
l. "When you compromise you admit that some
socialism is good. This is admitting that the
economy might work better if it were managed by government employees.
2. "One compromise always leads to another.
3. "Once you compromise you become a party
to the 'managed way.' Then you become a
defending party of the 'compromise' which
was what you were fighting against in the
first place.
4. "Compromise always lowers the morale of

the people involved. Pick up the issues and
fight. The world loves a fighter - especially
one who fights on PRINCIPLES. Even the
oppos.ition respects you when you fight for
your principles.
5. "Sound PRINCIPLES cannot ever be compromised. They are either right or wrong. Any
compromise on principle is on admission
that the principle is not valid or an admission that you are defeated.
6. "Once you compromise, you can no longer
fight on that battlefront. If you are defeated,
you can live to fight again - but if you compromise you cannot fight again - you have
already thrown up the white flag. Better be
defeated and keep the issue alive if your
principle is right - rather than compromise
-because !. }'OU compromise, the issue dies."
MEDICAL STUDENT. . . FAMILY DOCTOR. . . CITIZEN
Those AAPS members who are privileged to call
Dr. Nino Camardese their friend know he is a powerhouse of ideas and ideals. A family physician in
Norwalk, Ohio, and long-time member of this Association, Dr. Camardese represents the finest traditions
of American conservatism. And he is a teacher in
the most practical sense.
His latest teaching effort is his book Medical
Student . . . Family: Doctor . . . Citizen. In it, Dr.
Camardese distills the chief lessons life has taught
him, as a doctor and as a human being. His style is
a unique blend of pride in the principles he most
cherishes and humility about what he does not presume to know.
Dr. Camardese sits in no ivory tower. Nothing
that bears on his family practice escapes his attention, from good office layout to dealing with the
hearts and minds of his patients as well as their
bodies. Dr. Robert England, former President of this
Association, says of the book " ... there is no question
that this ... fills a gap in the young doctor's education."

Just as unquestionably, this book can furnish
the most solidly principled AAPS doctor with new
ideas about more effectively communicating his convictions to anyone who will listen, from powerful
politicians to profession! colleagues to his least conspicuous patient. The book would make a splendid,
inexpensive ($6) gift for a colleague, a medical student, or a senior high school student interested in
studying medicine. An order form is enclosed.
AMENDMENTS TO BY-LAWS
The following two Amendments were adopted
by the Delegates at their April, 1972 Meeting. In
order to become a part of the Association's By-Laws,
they must be voted on by the Assembly at the October Fort Worth sessions. They are:
"SECTION 2. State Branches.
A state charter may be obtained in either of
two ways. When one or more county or area
branches have been formed, they may initiate a
state-wide meeting for organization of a state
branch. In the absence of such county organizations, interested members of the national organization may arrange a meeting for state-wide
organizations. In either event, all AAPS members
in the state shall be notified of such meeting and
invited to attend. The state branch shall then
be organized by eligible members, under such
constitution, rules, regulations, and by-laws as
they may adopt; provided, always, that they
shall not be in conflict nor inconsistent with the
provisions of the articles of incorporation, bylaws, rules, and regulations of this Association."
paid during the course of his membership said

sum to be determined from the records of the
National office. Life Members shall enjoy all
rights and privileges of regular members but
shall no longer be required to pay annual
dues."
RESOLUTIONS
Resolutions to be considered at the October
12-14, 1972 Annual Meeting in Fort Worth must be
received at Oak Brook Headquarters no later than
September 22, 1972.
1972 REPUBLICAN NATIONAL CONVENTION
COMMITTEE ON RESOLUTIONS (PLATFORM)
Representatives of the AAPS appeared before
the Committee in person and urged the Republican
Party to reject the fallacious assumptions undermining
current proposals to nationalize medicine in the United
States - reject the policy of gradually compromising
the principles of individual responsibility by adopting or weakly opposing collectivist approaches to
medical care such as subsidizing per capita, prepaid
group practice plans now called Health Maintenance
Organizations and interfering in medical practice. by
areawide comprehensive planning programs, etc. We
urged the Republicans to build on faith in individual
responsibility and the demonstrated successes of
freedom in this country. We gave them chapter and
verse of what HEW, under the Republicans, is doing
to undermine the practice of private medicine.
"ARTICLE I. SECTION 1. (Add the following)

E. LIFE MEMBERSHIP. Any regular or emeritus
member in good standing may, upon the payment of $1,000 (or such sum as currently may be
established by the House of Delegates), become
a life Member of this Association. Life Members shall enjoy all privileges of regular members including, voice and vote at Meetings, and
eligibility for election to any office in the Association, but shall no longer be required to
pay the annual dues of regular membership."
Sincerely,

President
The AAPS Board of Directors, at their special

called June Meeting, amended the Delegates Amendment to read as follows:
"LIFE MEMBERS. Any dues-paying member in
good standing may become a Life Member by
paying in a lump sum the difference between
$1,000 and the amount of dues which he has
Enclosures: Folder on Annual Meeting

Reservation Card
Order Form for Medical Student
Family Doctor ... Citizen

2111 Enco Drive. Suite N-515. Oak Brook . Illinois 60521
31 2/325-7911
Index No. 10
September, 1972, Volume 27, No. 9
Annual Meeting Reminder
AAPS Doctors Force HEW to Retreat
Lawyers in Line for Control?
Is AMA Losing Faith?
Aetna Loses Suit But Isn't Backing Down
Flees Canada to Escape Red Tape
Washington in Brief
AAPS ANNUAL MEETING

This is the final call to send in your reservations for the AAPS Annual Meeting in Fort Worth,
~exas, Oct~b.er 12-14. If you're interested in expert opinion on what the future holds for the private practice of medicine and how you can help blunt the attack of the socializers, you can't afford to miss this
meeting.
The ~25 registrati~n fee ~ill be waived ~o~ medical students and interns, although they will have
to pay for their meals. Residents, like other phys1c1a ns, must pay the registration fee.
AAPS DOCTORS FORCE HEW TO RETREAT

HEW has backed down on one phase of its program of harassing doctors through Medicare. The
terms "I certify" or "I recertify" have long been a
bone of contention between AAPS doctors and the
HEW bureaucracy, including its agents such as Blue
Cross.
Large payments owed hospitals for extended
periods have been withheld because physicians have
refused to certify the medical necessity for services
on the grounds that they object, in principle, to the
concept of certification and recertifcation. These
funds were withheld despite the fact that doctors'
progress notes were proper and adequate and despite the fact that the services were performed in accordance with the law. Payments were denied on
arbitrary and capricious grounds relating to form not
substance.
However, a group of AAPS members in Minnesota made it clear to the hospital, to the members
of the community, and to others concerned that they

would not prostitute their professional judgment or
their independence to the regulations of a federal
bureaucrat. Further, they warned that if the local
community didn't back them up, they would leave
and fractice else~here. Despite this clear warning,
HEW s agent, Minnesota Blue Cross, advised the
hospital administrator that no more payments would
be made, that money already paid had to be returned and that by law the hospital could not collect from the patient.
We strongly protested to Representatives in
Congress, setting forth the objectionable regulations
and pointing out provisions of the Medicare law
which prohibit any federal officer or employee from
exercising any supervision or control over the practice
of medicine or the manner in which medical services
are provided (Section 1801, P.L. 89-97). We also
quoted Chairman Wilbur Mills' statement in the
House debate in which he made it clear that it was
not the intention of Congress to change the orderly
practice of medicine. We then went on to point out:
"Quite obviously, here is where the line has

to be drawn, namely, can HEW, with the
consent of Congress, deny o person over 65
medical care in a hospital because the
physician who attended that patient refused on principle to make statements in
which he did not believe. If HEW can do
this and Congress is amenable to it, then
the whole conceP.t of P.rohibiting federal
interference in the P.ractice of medicine is
a farce and the sooner the public knows it
the quicker we can get rid of this monstrosity which is clearly against the interests of patients and physicians alike."
Finally, after months of delay and negotiations,
HEW's agents, Blue Cross, agreed that "I certify" or
"recertify" is not necessary. A normal progress note
evaluating the patient's condition and possible prognosis is all that will be required.
Sac City, Iowa doctors, who are also members
of AAPS, found themselves in the same position and
they, too, have been notified, as a result of AAPS
assistance, that "I certify" or "I recertify" is not necessary.
Here ore outstanding examples of what can be
done if physicians stand on principle and refuse to
collaborate with arrogant over-bearing bureaucrats.
LAWYERS IN LINE FOR CONTROL?
The legal profession apparently is not immune
to the covetous designs of those ambitious to control the American people, individually and collectively. Nestling in the sections of the Kennedy Bill
(S-3327) to subsidize planning, development and
operation of so-called Health Maintenance Organizations (HMO's) are provisions ostensibly intended
to curb the rising cost of malpractice cases. One
way would be to establish a system of arbitration of
disputes. Another would be to limit attorney fees in
all cases that are settled or which go to arbitration.
A "Commission on Quality Health Care Assurance"
would be assigned the task of prescribing "a schedule of reasonable contingent fees for attorneys" representing daimants in malpractice cases. The penalty
for charging more than allowed by the commission
would be a maximum fine of $1,000 or imprisonment for a year, or both.
Are lawyers next behind physicians in line for
the "honor" of submitting to federal controls over
their practices and their fees? Is S-3327 the opening
gambit?
IS AMA LOSING FAITH?
In a recent article in Nation's Business, the
newspaper columnist James J. Kilpatrick, whose "A
Conservative View" is carried in 250 newspapers,
lamented the fact thot one of the nation's greatest
national assets, the "can do" spirit, is vanishing.

Throughout the world, Kilpatrick observed, America's
image is one of material greatness, expressed in
terms of bathtubs, telephones and TV sets. We have
more of everything than anyone else. How did we
get that way? "That material greatness," Kilpatrick
pointed out, "was built upon a tremendous foundation: a greatness of spirit ... a spirit of self-reliance."
But somehow, we Americ,ans are destroying that
spirit. Little by little, we are battering it to bits.
"Methodically," said Kilpatrick, "we are battering
the life out of that spirit."
Somehow, no one ever, or rarely ever, asks the
threshold question any more - "Should a specified
governmental program be undertaken at all?" The
question more likely is: "How much?" "The phenomenon," said Kilpatrick, "is at work in the field of medical care, or 'national health insurance.' Somehow the
threshold has vanished, and all that remains to be
debated are the benefit levels: false teeth, yes;
eyeglasses, r,o."
Kilpatrick is right. Evidence abounds that the
spirit is dying. Part of that evidence is the pervasive
notion that the way to solve a problem is to turn it
over to the federal government, to create another
smothering federal bureaucracy, and, in the process,
to denigrate the capabilities of private enterprise.
A few years ago, you would have been hooted
off the podium if you had been presumtuous enough
to suggest that the American Medical Assodation one
day would become a protagonist of federal intervention in matters which con and should be handled
by determined, innovative private enterprise. You
would have risked being tossed into the booby hatch
if you had advanced the idea that the AMA would
lose its faith in free enterprise - the self-reliance
that made this nation great.
But the AMA, which already has compromised
its principles by accepting federal financial grants
for some of its projects, has now taken a further
step in the process of obliterating its will and its
capacity to resist the suffocating spread of the federal government into the private affairs of U. S.
citizens.
Boastfully, the AMA has announced to the world
that it has proposed to Congress the creation of a
new federal agency within the Deportment of Health,
Education and Welfare to take over development of
emergency health c,are programs all over the nation.
The new agency, said the AMA in an editorial
in JAMA (Sept. 11, 1972) and in a news release,
would consolidate emergency medical care programs
now existing in a number of government agencies.
The presumption seems to be that if several programs administered by the federal government have
foiled, one program binding all the failures together
will succeed.
That's less important, however, than the fact that

the AMA, after a long and honorable record as one
of the staunchest, most unwavering and unyielding
champions of free enterprise, has so lost its faith in
the ability of the private sector to solve problems
and its belief in its own capacity for leadership that
its reflex response to a problem is to turn to the federal government for ideas and for money.
What the AMA is saying is that emergency medical care ought to be controlled from Washington by
bureaucrats, not from American towns and cities by
medical experts. And the AMA wants the taxpayers
to put up substantially more than half a billion
dollars in just three years for this boondoggling snub
of free enterprise.
If emergency medical care is in such a sorry state
that it merits a $600 million crash program, doesn't
it warrant top priority from the AMA? Isn't it worth
marshalling the considerable forces of the AMA and
the state and local medical associations, as well as
allied health and other organizations with a stake
in improving the product? Or has AMA also lost
faith in the abilities and leadership qualities of state
and local medical associations?
AETNA LOSES SUIT

BUT ISN'T BACKING DOWN
A Florida urologist has demonstrated again
that if you stand up for your rights you can win, even
if your antagonist is a corporate giant like Aetna
Life and Casualty Co. Aetna, as you know, has been
inciting its health insurance policyholders to rebellion
against legitimate fees charged by their doctors. The
Florida urologist, Dr. Richard J. Finder, decided to
battle it out when Aetna paid him only $108 of a
$250 fee and the patient, emboldened by one of
Aetna's letters advising against paying fees above
"prevailing levels," refused to pay the balance. Dr.
Finder sued and won. The judge, impressed by testimony of other phsyicians, ruled that Finder's fee was
the prevailing fee.
The price to Aetna - the patient's legal
fee, court costs and the balance of Dr.
Finder's fee.
Subsequently, Aetna officials met with representatives of the AMA and several state medical
societies whose members had been angered by
Aetna's tactics. Following these meetings, they all
breathed easier, content that t~e company intended
to mend its ways. In fact, AMA said flatly that Aetna
"will alter several claims practices and procedures
that many physicians have found objectionable" and
has taken steps "to prevent or minimize problems
that have arisen from these practices and procedures.
dent, made it abundantly clear that his company

does not intend to abandon its drive to fix physicians' fees. Testily accusing the Journal of "a number
of inaccuracies, " Cathles declared:
"The facts are that there has been no
'agreement' reached with the American
Medical Association and there is no 'new
approach' which gives doctors greater control over the size of payments made in settling claims."
The AMA had happily proclaimed that Aetna
would place "greater reliance" on peer review to
settle disputes under its "revised" policy. AMA said
the company "will ordinarily seek the advice of a
peer review committee or other review mechanism
utilized by the local medical society when questions
arise that cannot be resolved in discussions with
physicians."
Bristled Cathles:
"Under terms of Aetna's contracts with
policyholders, it (Aetna) cannot, has not
and will not surrender its responsibility in
determining benefits to a third party such
as a peer review group. Aetna has sought
the counsel of peer review committees for
some years and will continue to do so. The
findings of peer review mechanisms are
taken into account together with other relevant factors as an aid in determining the
range of prevailing fees."
Cathles said bluntly that Aetna will continve to
assist policyholders who are sued for refusing to pay
a fee higher than the prevailing fee determined by
Aetna.
Cathles boasted that Aetna's "program" is "currently saving policyholders some $5 million per year"
and is "expected to save more in the future."
The issue of fee fixing by third parties evidently
will continue to plague U. S. physicians. If Cathles
persists, the medical profession has not heard the
last of this important matter. If Aetna's tough attitude
is costing physicians $5 million a year and if, as
Cathles promises, it will cost them more in the
future, isn't it reasonable to assume that Aetna not
only isn't backing off but intends to get more aggressive in its attempts to regulate physicians' fees?
Physicians should reach understanding with
their patients that the kind of medical care they get
and the fees they will be charged are exclusively the
affair of physician and patient and far outside the
province of any third party. And they should be prepared, as Dr. Finder was, to challenge Aetna or any
other meddling third party in court if necessary.
DON'T YOU BELIEVE IT!

FLEE CANADA TO ESCAPE RED TAPE
In an outspoken letter to the Wall Street Journal, Lawrence M. Cathles, Jr., Aetna senior vice presi-
Dr. Francis A. Remillard knows all about the
stultifying effect of state medicine. He practiced for

years in Canada until frustrations became so overwhelming he fled to Brownfield, Texas. He recently
summed up the despair that only doctors who practice under a compulsory system can know: "Vie are
taught to save lives, then red tape makes it imoos.
sible."
.
. up. There are too many dedicated socializers and too

many devoted foes of medicine to keep the issue of
nationalization of medicine submerged for long. It
will come up! You can count on it.
Other Washington happenings in brief:
Congressional action was completed on

HR-2, the bill which would establish a military medical academy and set up scholarships for young MD's who agree to serve
in armed services on completion of training. Administration has not so far asked
for funds for a military medical academy.
Conference committee has a g re e d on

S-3442, the Communicable Disease Control
Amendments of 1972. Bill would authorize
$40 million a year for three years for immunization programs and other methods
to control communicable diseases, with
special emphasis on VD.
Congress has sent White House HR-9323,

which would permit use of me1'hadone maintenance programs under the Narcotic Addict Rehabilitation Act. Treatment would be
limited to programs aimed at total rehabilitation.
Senate adopted conference report and sent

to White House S-3323 to beef up research,
training and public education under National Heart, Blood Vessel, Lung and Blood
Act.
President Nixon has signed HR-15474 (now

P. L. 92-414) authorizing HEW to release
$11. l million in grants and contracts in
next three years for prevention and treatment of Cooley's Anemia.
Dr. Remillard, a surgeon, said in a newspaper

interview that "life in Canada is not deteriorating ,....
it is dead."
"Socialized medicine brings about a most frustrating situation for those in the medical profession.
Sometimes it was necessary for me to schedule an
operation for 14 months from the date I saw the
patient. There is always a lengthy waiting period unless the case is an acute emergency, and even then
there is likely to be problems."
He said doctors are paid by the government
and "have become so disillusioned with the system
that they work less and play golf more." When
nurses in hospitals, which are owned by government,
take a holiday there are no replacements. "During
summer vacation periods," he said, "the hospitals
are virtually closed." He recounted several instances
in which he was forced to sit by and watch patients
with rather minor conditions develop serious complications before medical assistance could be obtained.
He said the situation in Canada "is beginning to tell"
on the medical schools. A lot of a doctor's time is
consumed in filling out forms and getting lab work
approved. This is time that could be devoted to seeing and treating patients, Dr. Remillard said.
When Dr. Remillard got as much of the despair
and frustration as he could stand, he fled to the
United States. To where will U. S. doctors flee?
WASHINGTON IN BRIEF
Sincerely,
Recent reports out of Washington indicate that

the . inscrutable Wilbur Mills has stomped national
health care programs down several pegs on the leg. islative priority ladder. Mills himself has publicly declared that the first order of business before his
House Ways and Means Committee will be tax res
form when the 93rd Congress gets under way in January. He is said to want to follow tax reform with
consideration of trade legislation.
This doesn't mean physicians can afford to settle into a state of comfortable complacency. Whether
legislation to nationalize medical care comes up
first or fourth makes little difference - it will come

President
Enclosures: Annual Meeting Reservation Card
Statement of the AAPS to the Republican
Platform Committee
VMl-111 Order Form

2111 Enco Drive. Suite N-515. Oak Brook, Illinois 60521
312/325 7911
EMERGENCY BULLETIN
312/325-7911
2111 Enco Drive. Suite N-515, Oak Brook. Illinois 60521
Thomas G. Dorrity. M.D. President

Index No. 11
September 29, 1972
BULLETIN NO. 2-72
HR-1 which passed the House in 1971 is now being debated in the Senate
(beginning Wednesday, September 27th).
The Senate version:
is monstrous
contains 964 pages

raises Social Security taxes $5 billions
may be passed without much question, according to Chairman

of the Onte. - Russell Long (D., La.)
also, he says debate may last a month
The controversial welfare changes of the Nixon Administration may be dropped
during the Senate debate.
It is doubtful if any Senator understands the far-reaching implications of
their meddling with the willing-exchange system between physicians and patients.
It is a destructive blow to the free enterprise system based on individual
responsibility but yet they profess adherence to the system. (Details of the bill
were not fully available at press time.)
The Bill would:
Establish the principle of subsidizing HMO's and thereby putting

labor union organizations in a directing role over physicians.
Increase Social Security taxes January 1st from the present maximum
of $936 to $1,295. Following this increase those taxes increase to
$1,440 for each job. (The deceiving politicians and compliant media
trick the taxpayer by saying 50% is paid by the employer and 50%
by the employee.)
Extend the scandalously expensive, inefficient, wasteful Medicare

boondoggle to 1-1/2 million under age 65 who receive Social Security
''we 1 fare. "
Federalize welfare for aged, blind, and disabled, and impose

national uniformity with centralized control.
Provide federally guaranteed jobs at up to $69 a week for mothers

or fathers of families with school-age children.
- 2 -
Differences between the language of the Senate and House Bills after this
debate will require a conference between the two Houses to reconcile differences.
COMMENT
The whole mess is a grievous blow to all of the people generally and,
specifically, the medical profession. Although this fiscal irresponsibility and
destruction of freedom is ostensibly for the poor, this shot of "political dope"
will help drag us further away from the honorable goal of responsibility and
freedom for every individual in the United States.
TO DO
1.
Contact your local politicians and set in motion therein a chain protest to
your Senators against this travesty. You might point out that this is just
another step on down the road towards bankruptcy and totalitarianism following
in the wake of legislation passed in 1965 when the author thereof said "all
we want to do is get our foot in the door and we will expand the program
after that."
2.
Continue to bring this to the attention of your colleagues in the medical

profession and the leaders of many different Associations organized in your
conununity such as the Chamber of Connnerce, the Farm Bureau, the Bankers
Association, the Bar Association, farm machinery dealers, the petroleum
dealers, etc., etc., etc.
Sincerely,
_____/'~ ,<J_
~ ~~-. ~

President
TGD:eld
P.S.
Urge Senators to vote against HR-1. Also, urge defeat of any attempt
to pass the HMO part separately under the disguise that it is noncontroversial.
T.G.D., M.D.
EMERGENCY BULLETIN
312/325-7911
Thomas G. Dorrity. M.D .. President

BULLETIN NO. 3-72
Index No. 12
September 29, 1972
FDA INTERFERES WITH THE PRACTICE OF MEDICINE
The Food and Drug Administration proposes now to interfere with your
professional judgment in prescribing drugs and making drugs more difficult to
obtain.
It is proposing this change at the same time it admits "Congress did not intend
the FDA to regulate the practice of medicine between the physician and the patient."
It is urgent that you help stop this proposed interference~

Please read the enclosed
1.
2.
Proposed FDA Rule* and

Comments thereon
Please inform the HEW Hearing Clerk (your statement must be

received before October 14, 1972) that
You protest the Rule and why
Please send carbon copies to the Food and Drug Administrator
and the AAPS following the enclosed suggested format.
Sincerely,
~.--<J- ~
----
==:,---~
'

President
TGD:eld
Enclosures
* Federal Register, Tuesday, August 15, 1972,
Volume 37, No. 158.
EMERGENCY BULLETIN
312/325-7911
Thomas G. Dorrity. MD .. President
BULLETIN NO. 4-72
S-3327 Kennedy (D., Mass.)

HR-16755 Roy (D., Kans.)
Index No. 13
September 29, 1972
The Kennedy HMO Bill has passed the Senate 60-14. It would pour over $5
billions into per capita prepaid group medical practice.
The Health Subcommittee, headed by Rogers (D., Fla.), of the House Interstate
and Foreign Commerce Committee, has approved an HMO Bill (HR-16755).
Although Committee and House action before a mid-October recess is unlikely,
HMO advocates are hopeful for a Joint Conference later this Fall. The Bills
differ in most provisions but there seems to be a consensus that a mutually
acceptable Bill might be hammered out.
Due to the differences in the House and Senate Bills they would have to go to
Conference. The House Bill is limited to assisting 150 HMO's starting at a mere
cost of $300 millions. This is another foot in the door technique for expanding
federal subsidy and control. It is reported that the AMA Legislative Staff in
Washington has agreed to this as a compromise. Also, the AMA Newsletter for
September 25th reads: "The AMA has called for a complete evaluation of contract
practices that have been supported through federal aid and has urged that no further
HMO experiments be funded until this evaluation is completed. It favors further
funding of existing experimental HMO's as part of this evaluation." Sounds 1.ogical
to the uninitiated - but who evaluates whom under the House Bill?
THE HOUSE BILL READS
''PROGRAM EVALUATION
"SEC. 1210. (a) (1) The Secretary [of HEW] shall
evaluate The results of such evaluations shall be
made available to the general public and to the Congress
on at least an annual basis."
HEW, loaded with Wilbur Cohen manipulators, is promoting HMO's - so it will now
evaluate them and spend millions to propagandize the results. The fox is hired to
guard the hen house. A great compromise?
TO DO
1.
Alert your colleagues that passage of either proposal - or a combination of the

two - could drastically change the quality of medical care in the United States.
The proposals are key points in all major National Health Insurance proposals
now before the House Ways and Means Committee.
2.
Enlist all possible allies in understanding why these bills would result in
pclitical medicine which is bad medicine.
3.
Write us for additional infonnation to help in this critical struggle.

Sincerely,
President
Index No. 14
October, 1972, Volume 27, No. 10
HR-1 Spells Subjugation of Medicine
People Need Grass-Roots Movement
AAPS Member Wins Bout With Bureaucrats
New Doctor~Government Conflict Erupts in Britain
Physicians' Letters Tell It Like It Is
SOWS SEED OF DESTRUCTION

When the U.S. Senate passed the huge, 989page bill to further expand that giant give
-away program known as Social Security, it
voted to move the nation another mile down
the road leading to eventual subjugation of
medicine. The seed of destruction of medical
freedom is planted in that Bill, HR-1. _Passage
of HR-1 was a tremendous victory for the forces
in this country hostile to free enterprise, especially free enterprise in medicine. The private
practice of medicine is clearly in grave peril.
Besides loading billions of dollars of new
taxes on the people, this iniquitous legislation
would:
Skillfully force upon the nation's

d o c to rs a politically-controlled
"peer'' review mechanism that
would authorize government clerks
to interfere with the free exercise
of a doctor's medical judgment.
Establish a federal drug formulary

to enable bureaucrats to tei-1 physicians what drugs they can or cannot prescribe for Medicare pa~
tients.
Give a boost to the schemes of labor bosses to gain control over

doctors by making closed-panel
practices (HMO's) eligible for Med-
icare funds and subsidies, thus encouraging their further development.

In addition, HR-1 would liberalize Medicare
and extend that costly boondoggle to hundreds
of thousands under 65 on grounds of disability,
and federalize welfare for the aged, blind and
disabled.
And to add a gratuitous insult to the medical profession, this legislation as passed by the
Senate would grant federal sanction to the
cult of chiropractic by recognizing it as a service reimbursable under Medicare.
Passage of HR-1 is eloquent testimony to the
fact that the cause of medical freedom has
precious few champions in Congress. It also
demonstrated that the cause of medical freedom does not have an effective lobby in Washington; indeed, it has no permanent lobby at
all.
That unhappy fact is in no way diminished

by the action of the conference committee in
trimming out of the measure some obnoxiour.
features, such as the provision for dispensing
out-of-hospital drugs to Medicare patients, a
provision senators used to justify establishment
of a federal formulary. There is, unfortunately,
no evidence that solicitude for the medical
profession specifically and the public generally
was a motivating factor in modification of thP.
bill. All the legislators were interested in was
going as far as they could in buying or placat-
ing voters with public funds. The net effect was

to go as far as they dared toward bludgeoning
freedom and justice without risking a presidential veto.
GRASS ROOTS MOVEMENT NEEDED
A mighty grass-roots movement from the
people is now urgently needed if we are to
preserve free private practice of medicine,
the one-to-one relationship between patient
and physician unhindered by third-party intervention, whether government or insurance
company. As Dr. Dorrity commented at our
recently completed AAPS convention in Fort
Worth: "Clearly, the problem is that physicians
and patients are gradually, unsensationally
and obscurely being led to their destruction
without their knowledge. The reason they are
going along is because they do not understand
how they are being tricked - how their own
value system is being violated.
"On all sides we see walls of misunderstanding being erected between labeld groups, such
as labor, youth, minorities, women's liberation,
etc. America is losing direction. Individual freedom is being devoured by government bureaucracy's gaining unlimited power over every
facet of our lives. The Fabian socialists, communists and their fellow traveling dupes have
brought us to this point by many years of political manipulation.
There is no shortcut back to moral,
economic and political sanity. We
are in a deep hole dug by long abuse
of government power."
Recognizing the problem, what is to be done
about it? As Dr. Dorrity observed in Fort Worth,
the first step toward generating a solid grassroots movement to regain private medicine and
avoid nationalized medicine is to help the people understand that all these nefarious schemes
to enslave physicians do constitute, in most positive ways, an abominable violation of the
fundamental values long supported by AAP.S.
There are numerous avenues that can be followed to reach the people with our message.
An excellent tool for b1:1rning through the
fog of confusion which enfolds us has been
developed. It is in harmony with our Code of
Medical Practice and can help our medical colleagues and patients discriminate between rights endowed by God and artificiar
rights which are being used to deceive us.
It can provide better public understanding of

all schemes aimed at destroying our independence. The tool is a series of seminars designed
to help citizens understand and crystallize their
own fundamental beliefs. Some of these seminars already have been held in connection
with celebration of the nation's 200th birthday
in 1976. Also, they are designed to measure
the level of fundamental beliefs of the participants at the beginning of the seminars and
later they have reflectively analyzed their
thoughts. Without exception, the results show
that the particpants move toward a more realistic understanding of human rights, personal
integrity, the importance of freedom, the value
of logic and how to establish priorities. The
seminars also enhance appredation for the
rule of law.
If you want further information on how to
setup a seminar, write to AAPS.
I earnestly believe that if the American people were able to evaluate
important public issues, such as politicalized medicine, in terms of their
own fundamental beliefs, they would
realize how they are being duped
by the socializers and would soon
call a halt to congressional consideration of legislation that chops up
their rights.
BUREAUCRATS FORCED TO RETREAT
Like other members of AAPS, Robert J.
Hogue, Jr., M.D., Guthrie, Oklahoma, is nobody's patsy. Because he isn't, he proved that
when your cause is just and you stick to your
principles against government bureaucracy,
you can force the bureaucrat to retreat. After
reading in the AAPS News Letter, September,
1972, about the Minnesota physicians who won
a skirmish with HEW over certification and
recertification, Dr. Hogue recounted how the
Justice Department made a federal case out
of a $3 charge and how he won the case.
It happened last year. Dr. Hogue
performed a cholecystectomy on a
Medicare patient and, in accord with
his custom, did not take an assignment. The patient filed claim for reimbursement with Aetna Life and
Casualty Co., the Medicare carrier.
A few weeks later, Dr. Hogue received a letter from the Medicare claim representative,
John T. Bried, acknowledging the claim and requesting Dr. Hogue to send him operative notes
for the procedure so the claim could be processed. Dr. Hogue complied - and sent along
a bill for $3 for this service.
Dr. Hogue got back a letter stating Mr. Bried
had revaluated the patient's claim on the basis
of the operative notes and had sent the patient an additional check as a result. The letter
added: "However, it should be pointed out
that no provision was made in the Medicare
!a v for reimbursement to either hospital or
physician through Part B of the Medicare program for reports submitted. As such, we regret
that we are unable to reimburse you for the $3
amount which you charged on August 19 for
operative notes we requested. If Mr. Bried
thought that would end the matter, Mr. Bried
was" mistaken.
He quickly got this letter from Dr: Hogue:
"I have received your letter of
Aug. 31. I did not take assignment on
the claim ... You requested additional information and I sent it at your
request and billed you a very nominal fee for the additional report you
requested. I do charge any insurance
company for such additional reports.
I have charged you this nominal
amount but be sure, because of having to write an additional letter, that
the next time I will not charge such a
nominal amount. If this $3 is not paid
by Sept. 20, I will file this in small
claims court and we will let the court
decide whether you are liable for the
charge for reports which you -- requested."
Mr. Bried again refused to pay the .$3 fee.
So, Dr. Hogue sued him and Aetna in small
daims court. The U.S. Attorney intervened and
got the case transferred to Federal Court in
Oklahoma City. But before it came to trial, the
ll.S. Attorney sought settlement. Dr. Hogue received the $3 fee, plus $8 for court costs. His
attorney waived his fee, deeming his effort
"a public service."
"I t h i n k that other physicians

should be made aware that they can
charge Medicare intermediaries for
such information and win," said Dr.
Hogue. "Then maybe the daily phone
calls and requests for information
from the intermediaries would dimin~
ish."
NEW CONFLICT ERUPTS IN BRITAIN

Unrest, conflict, oppression, excessive cost these are hallmarks of political medicine, the
kind that Ted Kennedy, Leonard Woodcock
and other authenticated "liberals" want to
force down the collective throats of the American people. Turmoil has been the trademark
of political medicine in Britain. And now a new
conflict has erupted. More than 6,000 British
physicians have refused to pay the annual fee
required to keep their names on the National
Health Service Medical Register. The threat that
hangs over them is that if they don't pay
they'll be kicked out of the NHS. The General
Medical Council of the NHS has given the
physicians until November 15 to pay the fee
or out they go.
The doctors don't like the way the General
Medical Council functions, and they don't like
the way the retention fee keeps going up. Ten
years ago, a British physician could pay 21
pounds and get his name put on the register
for life. Since then, the for-life fee has rocketed
to 210 pounds. Besides that, in 1970 a 2 pound
annual fee was imposed, and the annual fee
was hiked to 5 pounds this year.
This time, though, it apeears the p_bysicions
~Y. have the up~er hand. It is genero!lv
agreed that booting 6,000 physicians our of
NHS would lead to chaos and force a number
of hospitals to close and others to curroil services. The government hopes it can restructure
the General Medical Council and lure the physicians into paying the retention fee.
Meanwhile, the B.ritish Health Ministry was embarrassed when a group
of professional food samplers clandestinely tested meals in 31 nationalized hospitals and found the food
so nauseatingly bad that it lowered
the will of patients to get better.
Test was conducted secretly after the
Health Ministry turned down a request to officially sanction the test.
The food samplers reported meals
were uniformly of "scandalously low
standards" and "depressing enough
to reduce the appetite by their very
appearance." Meals were satisfactory in only 4 hospitals.
LETTERS TELL IT LIKE IT IS
A noteworthy contribution to the literature
of government intervention in the practice of
medicine can be found in a series of letters to

the editor under the general heading Doctors'
Views of Medi-Cal in Sept. 21, 1972, issue of
The New England Journal of Medicine. The
letters are in response to a self-congratulatory
article on the program by the adminstrator of
the California Dep,artment of Health Care
Services, Earl W. Brian, M.D..
Dr. Brian had boasted that state intervention had saved tax money by reducing "unnecessary" hospitalizations. Replied James R.
Lynch of the Contra Costa County Medical
Services: 'We believe the biggest single explanation (for cost reductions) is that many
eligible patients are denied both outRatient
and inpatient care by arbitrary:, noncifriicciT
regulations."
Commenting on Medi-Cal paperwork and red tape, Melvin C. Britton,
M.D., of the Palo Alto Medical Clinic
summed up his frustrations this way:
"Some day, the ideal state will bereached, and physidans will spend so
much time requesting permission to
do the things they want to do and to
use the drugs they want to use that
they will have no time to do them or
to use them."
weary and discouraged with the constant harassment of those in the government whose days
are spent with numbers and conferences rather
than patients."
Observed Anthony Somkin, M.D., Mount
Zion Hospikll and Medical Center, San Francisco: "Human experimentation committees protect hospitalized people from participating in
research without informed consent. A similar
safeguard is apparently necessary to protect us
from social reformers who measure progress
by counting the number of empty beds formerly filled by state welfare recipients."
Dr. Brian's response to these letters is a
typical example of the bureaucratic mind at
work. His "final solution" to all the problems
of providing health care to the indignet is 11establishment of prepaid health plans (like
HMO's) and an environment to foster their
rapid growth."
SUGGESTIONS TO LEADERS
Keeping this and other AAPS News Letters
will provide an invaluable source for speech
material.
No doubt, Dr. Brian and his staff have saved

money, said Lawrence Adler, M.D., Panorama
City, but "I believe that it is at the expense of
the patient that these savings have been made
... There has been a definite shift away from
the private care of these Medi-Cal patients by
private physicians ..."
These were the pungent comments of Alvin
Lee Block, M.D., Napa: "To those with a penchant for administrative medicine, Dr. Brian's
article in the June 22 New England Journal of
Medicine may have read like a book-of-themonth novel, but as a primary physician engaged in the day-to-day dispensation of medical care in California, let nie tell you firsthand
that Dr. Brian and his 'increasingly sophisticated' controls come across like an absolute,
total disaster ... Gradually, even the stoutest
and most devoted of the profession become
Sincerely,
Robert S. Jaggard, M.D.

President
Enclosure:
"The Political Fallacy That Medical

Care Is A Right''
by Robert Sade, M.D,

312/325- 7911
EMERGENCY BULLETIN
ASSOCIATION O:F A:\IERIL-\~' PHlSit:IAI\~ AND SURGEONS. INC.
312/325-7911
2111 Enco Drive. Suite N-51 5. Oa~ [';roN. !i,,no,s 60521
Robert S. Jaggard, M.D., President

BULLETIN NO. 5-72
[ndex No. 15
October 20, 1972
CONGRESS AUTHORIZES f1JRTHER INTERFERENCE IN

THE PRACTICE OF_MED1:1NE __ - HR-'----l_ _.
On October 17, 1972 the House and S2natc approved Amendments to the Social
Security Act changing the Medicare and Merlicaid Jaa111 of 1965 in a manner that
insidiously further undennines the'practice oi privc1ce medicine.
The vote of 305 to 1 in the House and r>l Lu G i::i die Se,1ate came after a
secret conference between the House and 8eun.te which was reportedly participated
in and dominated by HEW functionaries. The IJi. l number was HR-1.
In addition to increasing Social Security cI<l age and smvivors benefits,
it did the following two important things Lo rnedif'.ine. It provides for:
1.
Subsidizing prepaid pe'C ,.

,L, Y:J:..lltenance
Organizations - HMO's) in .,u.,.:, '""' ~.:, "'::; L0 t>>:o,,i..L,t, control of
medical practice by non-pby,.,d.a:is, so-calied consumer representatives under the direction J1 d ,_ hEW bureaucracy.
2.
Instituting and paying fc;;

.s.,'lwi.de ;;-.::.-"' ' "~ oe;;t:cnsibly
physician and physician controi.Hsi organLc:ations to ex,o::rcise
surveillance over physicb.1:; j_:, r.ie:c p:'.'ac:icc, oi private medicine.
Such network to be named ?,-::.;' :.:::: rL,l St.:md,1,:d.- ~Z2view Organizations.
Control would be tightly in t'., : ~;-i._1s of the HEw bureaucracy.
Re:
HM0 1 s - Section 226
The confereas explained to the House and Senate that the bill ''would authorize
incentive payments to qualified Health M,1:Lnts;:;a,,ce Organizations . . . such incentive
payments could not exceed, in any year, J.O?. ,:f P.djus~ec1 ,3.V=!r,,gc- per capita costs."
Also, that such "incentive reimburserr,ent Wlinld bf::' r,vailable to substantial [sic]
established HMO's which have sufficient ope.1.;":t:
l1istocy and enrollment to permit
evaluation of their capacity to provide appropriate care and to establish
capitation rates. Established HMO's would have
1.
2.
A minimum enrollment of 25,000, not more than

half of whom are 65 or older, and
Have been in operation for at least two years.
Exception to the size requirer:1ent is provided for

HMO's in small connnunities or sparsely populated
areas (5,000 members and 3 years operation)."
EMERGENCY BULLETIN
2111 Enco Drive. Suiie N-515. Oak Brook . Illinois 60521
312/325-7911
Robert S. Joggord, M.O., President

Fronk K. Woolley, Executiw Director
Index No. 15
October 20, 1972
BULLETIN NO. 5-72
CONGRESS AUTHORIZES FURTHER INTERFERENCE IN

THE PRACTICE OF MEDICINE - HR-1
On October 17, 1972 the House and Senate approved Amendments to the Social
Security Act changing the Medicare and Medicaid Law of 1965 in a manner that
insidiously further undermines the'practice of private medicine.
The vote of 305 to 1 in the House and 61 to O in the Senate came after a
secret conference between the House and Senate which was reportedly participated
in and dominated by HEW functionaries. The bill number was HR-1.
In addition to increasing Social Security old age and survivors benefits,
it did the following two important things to medicine. It provides for:
1.
Subsidizing prepaid per capita group practice (Health Maintenance

Organizations - HMO's) in such a way as to provide control of
medical practice by non-physicians, so-called consumer representatives under the direction of the HEW bureaucracy.
2.
Instituting and paying for a nationwide network of ostensibly

physician and physician controlled organizations to exercise
surveillance over physicians in the practice of private medicine.
Such -network to be -named Professional Standards Review Organizations.
Control would be tightly in the hands of the HEW bureaucracy.
Re:
HMO's - Section 226
The confereas explained to the House and Senate that the bill ''would authorize
incentive payments to qualified Health Maintenance Organizations . . such incentive
payments could not exceed, in any year, 10% of adjusted average per capita costs."
Also, that such "incentive reimbursement would be available to substantial [sic]
established HMO's which have sufficient operating history and enrollment to permit
evaluation of their capacity to provide appropriate care and to establish
capitation rates. Established HMO's would have
1.
2.
A minimum enrollment of 25,000, not more than

half of whom are 65 or older, and
Have been in operation for at least two years.
Exception to the size requirement is provided for

HMO's in small connnunities or sparsely populated
areas (5,000 members and 3 years operation)."
One of the effects of this language is to prefer HMO's over regular fee-forservice medical practice and permit them to keep a percentage of the "profits"
which they make by short-changing unsuspecting members.
It is more than interesting to know that the Telephone Directory of the Dept.
of HEW fo.r the Fall of 1971, shows Dr. Vernon E. Wilson as Administrator of the
Public Health Service, Health Services and Mental Health Administration and that
under that Administration is a Health Maintenance Organization Service with a Director
and a number of Divisions. Dr. Wilson is the high HEW official who was elected to
the Council on Medical Education of the AMA in San Francisco in June, 1972. But,
the curriculum vitae put out by the Board of Trustees was silent about his
connection with HEW.
It is also more than interesting that the Hospital Progress Magazine for
July, 1972 reported the following:
- 2 -
''With the enactment of HM) legislation a good possibility this

year, the American Medical Association :~: c;;~:derated its position
of outright opposition to such legislation. The AMA's Washington
lobbyists are telling members of Congress that the association is
prepared to accept full federal development of the 110 HMO's that
HEW already has funded. Previously, the association said it
would support the developmeat of only 50."
Re: PSRO - Section 249F
(Professional Standa.rr:is P.e:ie~,,--2.E.ganization)
Senator Long explained" . . organiz~tions of rhysicians will review all
institutional care and at their option with the app~oval of the Secretary all out of
institution care provided.under Medicaid and Medicare." (CR 10-17-72, p. S-18479)
This amendment is cleverly designed to lu:re physicians into participating in
espionage on themselves as agents of HEw but giving the appearance that such
treachery has the approval and support of physicians in the practice of private medicine.
This is accomplished by ostensibly giTing physicians within an area the opportunity
to exercise some control over which PSRO will conduct the espionage. It is important to
note that doctors are being 11whiched. 1 ' The qrn:::stion is not whether there will be an
espionage system but which organizati.01; wi 1.1 f'.-'ffry it out, Regardless of which
organization of physicians ostensibly controls them, real control will be in the
hands of the HEW bureaucracy under "rules and regulations by the Secretary of HEW."
The law, which is obviously designed to confuse the naive and unsuspecting and
to protect medical organization representatives who agreed to this major shackle on
the freedom of the medical profession, r'~ovides for:
The Secretary of HEW to info:;:,n docto:-s cf metlicine 2r.,d
osteopathy in active practi~e i~ an 2~ea he desig~atcs of
his intention to contract w'.'..::-1 2. pa~~""";?,.. o::ganizatior..
(PSRO), and that:
If 10% of such doctors object, he shall poll them~ Tf
more than 50% of those responding t8 tne poll reject the
particular organization he sh,:,_1., r,:)t c:,:t:-ect with i:: ..
Important points to note are:

1.
2.
This doesn I t eliminate "sutveil la.,,c2

physicians by some organizatior~,
It merely gives doctors "in active p:::-a,~tice" th<! appearance of a
democratic determiriation of which ors~~~'.~za..t::..on wil!.
':),c
~~s
f!:'ont
to carry out the bureaucracy's regulations,

3.
"Doctors in active practice II would includ.e salar:i,ed doctors working

for Group Health Association organizations as well as medical schools
and others who are for political medicine.
4.
And, most important, as indicated above, it would give the appearance

of approval of the controls by its victims.
By the time you receive this, the President probably will have signed HR-1
into law since the HEW bureaucracy, which advises him, has been openly and covertly
propagandizing for HM0 1 s and PSRO's for many years (see Dr. Dorrity's speech
HMO's versus Ethical Medicine, April, 1972).
- 2 -
''With the enactment of HM) legislation a good possibility this

year, the American Medical Association has moderated its position
of outright opposition to such legislation. The AMA's Washington
lobbyists are telling members of Congress that the association is
prepared to accept full federal development of the 110 HMO's that
HEW already has funded. Previously, the association said it
would support the development of only 50. 11
Re: PSRO - Section 249F
(Professional Standards Review Organization)
Senator Long explained" . . organizations of physicians will review all
institutional care and at their option with the approval of the Secretary all out of
institution care provided under Medicaid and Medicare." (CR 10-17-72, p. S-18479)
This amendment is cleverly designed to lure physicians into .participating in
espionage on themselves as agents of HEW but giving the appearance that such
treachery has the approval and support of physicians in the practice of private medicine.
This is accomplished by ostensibly giving physicians within an area the opportunity
to exercise some control over which PSRO will conduct the espionage. It is important to
note that doctors are being ''whiched." The question is not whether there will be an
espionage system but which organization will carry it out. Regardless of which
organization of physicians ostensibly controls them, real control will be in the
hands of the HEW bureaucracy under "rules and regulations by the Secretary of HEW."
The law, which is obviously designed to confuse the naive and unsuspecting and
to protect medical organization representatives who agreed to this major shackle on
the freedom of the medical profession, provides for:
The Secretary of HEW to inform doctors of medicine and
osteopathy in active practice in an area he designates of
his intention to contract with a particular organization
{PSRO), and that:
If 10% of such doctors object, he shall poll them. If
more than 50% of those responding to the poll reject the
particular organization he shall not contract with it.
Important points to note are:
1.
This doesn't eliminate "surveillance."

physicians by some organization.
Controls will be forced upon
2.
It merely gives doctors "in active practice" the appearance of a

democratic determination of which organization will be the front
to carry out the bureaucracy's regulations.
3.
"Doctors in active practice" would include salaried doctors working

for Group Health Association organizations as well as medical schools
and others who are for political medicine.
4.
And, most important, as indicated above, it would give the appearance

of approval of the controls by its victims.
By the time you receive this, the President probably will have signed HR-1
into law since the HEW bureaucracy, which advises him, has been openly and covertly
propagandizing for HMO's and PSRO's for many years (see Dr. Dorrity's speech
HMO's versus Ethical Medicine, April, 1972).
~u uu
1.
Study this carefully.
2.
Discuss it with other like-minded physicians in your lo.cal Medical Society.
3.
Innnediately form local and state Chapters of AAPS to facilitate doctors and
patients being exposed to the truth.
4.
Join the the AAPS Crisis '72 Educational Program.
RSJ:eld
Rob
President
Index No. 15
November, 1972, Volume 27, No. 11
The Malignancy of Bureaucratic Subsidy and Control

of Medical Practice Is Metastasizing
Virginia Takes Another Look
PSRO - HMO - Here Is How They Work
Bureaucrats In Your Office
Collaboration Being Planned
Medical Care Standardized
President Urged to Veto HR-1
Subsidizing HMO's
New Method of Delegate Selection Proposed
October, 1972 AAPS Fort Worth Meeting
THE MALIGANCY OF BUREAUCRATIC SUBSIDY

AND CONTROL OF MEDICAL PRACTICE
IS METASTASIZING
The President signed HR-1 into Public law
92-603 "with much pleasure" on October 30,
1972. We urged him not to because it includes
two particularly vicious and destructive pieces of
anti-private medicine legislation.
The bill:
Is known as the Social Security Amendments

of 1972.
Drastically changes Medicare and Medicaid.
Centralizes decision-making and damages

the relationship between doctor and patient
by establishing two collectivist princieles
that will seriously weaken and undermine
individual responsibility {nd dignity in the

practice of medicine. Both are unwarranted
compromises.
(I) One establishes a nationwide network
of surveillance organizations primarily

to control medical practice by subsidizing Medical Foundations and other
groups. Ostensibly, the Foundations will
be directed by private practicing physicians, but actually, they will be pawns of
the HEW bureaucracy since the Foundations will be directed and paid by government. They will be called Professional
Standards Review Organizations (PSRO).
(II) The other establishes the principle of
subsidizing prepaid per capita group
practice (Health Maintenance Organizations (HMO's) - purporting to emphasize
so-called preventive medicine). It will,
via subsidy, promote labor union and
HEW bureaucratic control of medical

practice which is based on collectivist
concepts and will discriminate against
fee-for-service private practice based on
individualistic co n c e pt s. It lays the
groundwork for more legislation to nationalize medicine here as in Great
Britain.
Other organizations will tell you that since a
federal law has been passed setting up PSROs
which will be paid for by Social Security, there is
nothing we can do but go along and get the
money and control ourselves and hope for the
best. In fact, the AMA Newsletter of November
6, 1972 says:
3rd Join with other like-minded physicians in

the practice of private medicine and together make it clear to your local and
state medical societies, to the politicians,
and your patients that you will not collaborate in destroying your right to practice ethical medicine. If some group wants
to prostitute the profession and become a
policeman to carry out impossible political
promises, recognize them as enemies of
freedom and resist them.
4th
"AMA LEADERSHIP IN FOSTERING medical society development of PSROs was

urged by the American Assn. of Medical
Society Executives' Advisory Committee
to AMA's EVP (Ex. Vice Pres.) at its
meeting in Chicago last week."
This is just what the socializers hope you will
do - take the bait or stand by while others in
your name collaborate for "30 pieces of silver"
in destruction of your right to give and the patient's right to receive the highest quality medical
care physicians are capable of providing.
This looks like the easy_: way out. It isn't. It is the
eas1- way_: IN. After you try it, you won't like it but then it will be too late - having permitted
yourself and the profession to be prostituted, one
can write the sorry end result now.
If in weaker moments any of you think collaborating with government wouldn't be all that
bad, keep reminding yourself that as a coUaborator you would be like the lady with a happy smile
who went for a ride on a crocodile. At the end of
the ride, the lady was inside and the smile was on
the crocodile.
But DON'T DESPAIR! DANGER IS OPPORTUNITY! NOW IS THE TIME TO ACT!
I strongly urge every member of AAPS to

make it clear to President Nixon, to HEW
Secretary Elliot Richardson, to his Senators
and Congressmen and to his patients by
every means available that he will not become a collaborator in any scheme, including HMOs and PSROs, that will interfere with the rights of doctor and patient
and will irreparably damage the quality
of medical care in this country.
5th Outlined below are some of the most

heinous provisions of the PSRO law and
an explanation of their effect on the practice of medicine. I recommend that you
study them carefully and then review them
with the editor of your local newspaper.
No newspaper to my knowledge has even ,
mentioned how the PSRO law will be used
to politicize medicine. Editors are oblivious
to the fact that the PSRO is intended to
standardize medicine, and if that is accomplished will result in deterioration of
quality to the detriment of patients.
6th Work within your Medical Society to resist
establishment of a Medical Foundation.
Get your colleagues to understand why a
Medical Foundation is a collaborationist
move and is morally and ethically wrong.
7th
Insist doctors are not responsible for starting Medicare and Medicaid and, although
they are being blamed for it, they are not
responsible for the excessive costs. Excessive costs are inherent in the nature of
those programs.
SO, WHAT CAN WE DO?

1st Recognize the truth and study the poisonous provisions of this Law. (Most of the
important points are in this News Letter.)
2nd Say No! Do not collaborate and do not
be deceived by staff and physicians who
want to take the federal bait.
VIRGINIA TAKES ANOTHER LOOK

Resistance is already appearing. For example,
the Medical Society of Virginia, at its State Convention November 5-7, refused to accept now a
Foundation. In justifying setting up a Foundation
a Medical Society committee recommended that
in view of the passage of the "Bennett Amendment" (included in PL 92-603) requiring Professional Standards Review Organizations in all states
"a strong central review organization
that can cope with other contesting
strong groups seems most likely to best
protect the interests of the patient as
well as the physician."
That committee also asserted that the present
trend in peer review emphasizes "education" and
recommended an organization along the lines of
the Mississippi Foundation, which is an agent of
government.
Opponents of converting the medical society
into an agent of government pointed out that the
law emphasizes control of ehtsicians not education. Sec. 1152 (e) states that the purpose is "review and control." Compulsion is the key. They
also argued that: "If you become a government
agent to police this government program, you
will lose your character as a physidan and thereby undermine the doctor-patient relationship.
Nationalization of medicine in Europe clearly documents. that conclusion.
"Likewise, conflict of interest between the principal (government) and the agent (the Medical
Foundation) is inevitable. Thus, a Foundation,
which is paid by HEW and which must operate
under its instructions, will find that it either has
to 'not contest other strong groups in behalf of
physicians' interests' or fail to discharge its responsibility as agent of HEW.
"Furthermore, regardless of who runs the PSRO,
costs of government health programs will continue
to soar since the cause is artificial demand created by political promises impossible of fulfillment.
Why bring certain condemnation on a medical
society and the profession for failing to accomplish the impossible? Rather, insist government do
its own policing.
"While insisting that the government operate
its own policing system will involve great difficulty,
it's still better than the medical profession prostituting its medical ethics and placing itself in an
impossible situation."
On the basis of these arguments, together with
a critique of PL 92-603, Virginia did not set u~
Medical Foundation but established a study group
to thoroughly examine the entire truth of the matter and report back in October, 1973. Virginia
members of the AAPS intend to see that the truth
comes out!
PSRO - HMO - HERE IS HOW THEY WORK

I. Professional Standards . Review Organization
(PSRO) {Section 249F)
A Medical Foundation, organized by a

Medical Society and serving as a PSRO,
under contract to, paid, controlled, and
directed by the HEW bureaucracy is required:
To determine in all Medicare and
Medicaid cases whether:
*services are or were medically necessary (Sections 1151, 1155 and 1160)
*quality meets standards prescribed by
HEW clerks (deceptively made to appear as the decision of private physicians) (Sections 1155 and 1160)
These stated purposes, while containing enough

apparent validity to deceive shallow observers,
are an insult to the integrity, competence and
dedication of most physicians. So is the premise
of PSRO as set out in the opening paragraph of
the report of the Senate Finance Committee:
"There are substantial indications," said
the report, "that a ~gnificant amount of
health services paid for by Medicare
and Medicaid are in excess of those
which would be found to be medically
necessary under ~eJ>roi:>riate profession~
al standards. Furthermore, in some instances services provided are of unsatisfactorLerofessional quality." (Underscoring provided.)
These statements are typical of the vague, unsubstantiated charges and undefined terms which
characterize the committee report and the PSRO
law as well.
The cause of the trouble in federal health programs is the corrupt politician baiting the hook,
not the physidan and patient unknowingly taking
the bait.
President Johnson said in 1964:
"We must provide hospital insurance for
our older citizens, financed by every
worker and his employer under Social
Security, contributing no more than
$1.00 a month during the employee's
working career to protect him in his old

age in a dignified manner, without cost
to the Treasury, against the devastating
burden of prolonged or repeated illness."
Government estimated in 1965 that the hospital
program would cost $3.1 billion; in 1970, it actually cost well over $5 billion. From May, 1971, to
April, 1972, hospital costs were $5 billion, 918
million. In addition, medical insurance costs were
$2 billion, 220 million; for a total of $8 billion,
138 million (Figures taken from Social Securi!}'
Bulletin, September, 1972, p. 24.).
By the report of the Senate Finance Committee,
the nation's physidans stand accused of driving
up the cost of Medicare enormously beyond estimates.
"According to recent estimates," said the report, "the costs of the Medicare hospital insurance
program will over-run the estimates made in 1967
by some $240 billion over a 25-ye-ar period." In
juxtaposition with that is the statement that "the
monthly premium costs for P-art B of Medicare doctors' bills - rose from a total of $6 monthly
per person on July 1, 1966, to $11.60 per person
on July 1, 1972. Medicaid costs are also rising at
precipitous rates."
The artful insinuation is that the excesses of
physicians are responsible for rising costs of these
two programs. Deceitfully ignored is the fact that
artificial health care demands created by government, irresponsible spending legislation enacted
by Congress and inflationary practices of the executive branch are the real causes of higher medical care costs.
PSRO is a cleverly conceived device by
which physicians are to be tricked into
becoming a tool of government to hound
and harass and intimidate other physicians. It is a trap baited with highsounding catchwords - help the poor, educate physicians, save taxes, and elevate
the quality of medical care. It is a trap
with which to lure the unwary physician
into voluntarily givng up freedom to exercise his own judgment. It is a trap by
which physicians, if they agree to participate, will be confessing that not only
the few, but the many, are indeed guilty
of cheating taxpayers and subjecting old
people and poor people to unnecessary
medical care. They will be confessing
that they have been giving the poor and
old people medical care of an unsatisfactory quality.
BUREAUCRATS IN YOUR OFFICE

Every physician in America should understand
that this new PSRO law grants agents of government the authority for the first time in this land
of the free to rifle the Rrivate Ratient files of doctors and to snoop through their offices to gather
evidence which may be used against them. Section 1155 directs the HEW Secretary to develop
rules and regulations authorizing PSROs to:
"Examine the pertinent records of any
practitioner or provider of health care
services" treating Medicare and Medicaid patients.
"Inspect the facilities in which care is
rendered or services provided . . . of
any practitioner or provider."
Only the most gullible among us would believe HEW will permit PSROs to carry out their
bureaucratic missions without scrutinizing patient
records in physicians' offices.
You must also be warned that there is a calculated attempt being made to lull physicians into
the belief that they have been given three years
of grace before the full impact of this disastrous
law falls upon them. We are being told that review of institutions has first priority until Jan. 1,
1976, "with review of outpatient private care not
necessary or even encouraged ... " (See American
Medical News, Oct. 23, 1972.)
Don't be misled! Bear in mind that physicians
are responsible for hospitalizing patients and for
the core they receive in hospitals. Whenever you
hospitalize a Medicare or Medicaid patient, the
full force of the law will be felt, including Section 1155 which permits federal agents to snoop
into your patient files. Further, a PSRO can probe
into non-institutionalized patient care if it wishes.
COLLABORATION BEING PLANNED

The role of medical societies as collaborationists in this program to destroy medical freedom
already is being planned. The AMA Newsletter, a
weekly report from the AMA Executive Vice President's Office, had this to say (Vol. 4, # 42, Nov.
6, 1972):
"An AMA task force is examining the potential
roles to be performed by the AMA and state and
county medical societies in developing PSROs."
The Newsletter reveals also: "Assisting the AMA

task force is a five-member ad hoc committee of
the American Association of Medical Society Executives that was appointed last week." On the
committee to plan medical society collaboration
are executives from state medical societies of Utah
and Pennsylvania; medical society of Milwaukee
County, Wis.; American Society of Internal Medicine, and medical society of San Joaquin County,
Calif.
If you don't want your medical society to participate in this monstrous sell-out of American
medicine, you and your like-minded colleagues
had better act now, before your professional freedom is fatally compromised. AAPS members in
Virginia proved effective action can be taken.
MEDICAL CARE STANDARDIZED

By this new law, medical care will be standardized. Physicians don't have to be told the evils
that portends, how standardization will jeopardize
the quality of medical care received by the elderly and the poor in this country. Section 1156 of
the law directs that each PSRO "shall apply professionally developed norms of care, diagnosis
and treatment based on typical patterns of practice in its regions (including typical lengths-of-stay
for institutional care by age and diagnosis) as
principal points of evaluation and review."
These "norms," the law states, will be developed and imposed on physicians by a "National
Professional Standards Review Council" and the
HEW Secretary. The law specifies that on this
high Council to tell doctors what standards they
must adhere to in the diagnosis and treatment of
the elderly and the poor will sit physicians "who
have been recommended ... by cons.umer groups
and other health care interests."
The repugnant nature of this law does not end
here. Section 1160 will force all physicians taking care of Medicare and Medicaid patients to
assure by whatever method the HEW Secretary
decides is appropriate that their medical services:
"(A) will be provided only when, and
to the extent, medically necessary; and
"(B) will be of a quality which meets
professionally recognized standards of
health care; and
"(C) will be supported by evidence of
such medical necessity and quality in
such form and fashion and at such time

as may reasonably be required by the
Professional Standards Review Organization in the exercise of its duties and
responsibilities. . ."
Let no one doubt that when this law states that
anything is to be required by the PSRO that means
in fact that it will be required by the Secretary of
HEW. Throughout this law, these conditions appear: "in accordance with regulations of the
Secretary." If physicians or medical society executives believe they can take federal tax dollars
and control the manner in which PSROs perform
their surveillance functions, they are naive in the
extreme. The HEW Secretary will crack the whip
and they will perform to his satisfaction. If they
don't, the law will allow him to discharge a Rhysician-organized PSRO and appoint another composed of non-physicians.
If you don't like the demeaning aspects of certification and recertification under Medicare now,
wait till you have to certify diagnosis and treatment of your office patients, too.
YOU CAN BE PUNISHED
For reasons difficult to fathom, the AMA has

not seen fit to fully describe the extent of the
punishment that can be inflicted on physicians who
are deemed by HEW to be guilty of violating the
mandate of the law. As noted by AMA, a physician declared to be guilty by the HEW bureaucracy can be barred from taking care of Medicare
or Medicaid patients. Never mind that he might
not, in fact, be legally guilty; never mind that the
exercise of this penalty may deprive the patient of
his right to the physician of his choice. But HEW
may also exercise another option against the
physicians by forcing him "to pay the United
States, in case such acts or conduct involved the
provision or ordering . . . of health care services
which were medically improper or unnecessary,
an amount not in excess of the actual or estimated
cost of the medically improper or unnecessary services so provided, or (if less) $5,000." (Section
1160)
To defend himself, the physician would have
to endure the time and expense of a hearing before HEW, which had already judged him guilty,
and prolonged litigation in the courts.
it!
If ever a law made a mockery: of justice, this is

--
PRESIDENT URGED TO VETO HR-1
By personal letter to President Nixon on behalf

of members of AAPS, I urged him to veto HR-1.
He did not, however; he signed it into law. My letter said, in part:
'We submit that the Professional Standards Review Amendment to HR-1 is grounded on a premise that is not only false but is insulting to the
profession of medicine - that physicians are responsible for the rising cost of these programs
(Medicare and Medicaid) because significant numbers of them are ordering treatment medically
unnecessary and give these patients poor quality
medical care. Since the premise is false, the need
for this compulsory surveiHance program cannot
be justified . . . We are gravely .concerned that
the quality of medical care received by the millions of elderly and indigent citizens would progressively deteriorate under the oppressive weight
of government-imposed standards or 'norms' of
diagnosis and treatment provided by this PSRO
amendment. If members of Congress are sincerely
interested in improving the quality of medical care
received by Medicare and Medicaid patients, this
is not the way to achieve it, and certainly not by
subsidizing the cult of chiropractic.
"This proposal . . . is, pure and simple, a device to exercise government coercion of physicians,
a means of interfering with medical care ... HR-1
would cost the over-burdened taxpayers and
victims of inflation an estimated $6 billion. Many
millions of dollars can be added to that estimate
as a consequence of the implementation of the
PSRO and HMO amendments. No one can accurately forecast the cost of subsidizing a nationwide network of PSROs and HMOs, but you can
be certain the cost would be inflationary and
would further cripple the country's economy."
SUBSIDIZING HMOs
The new Public Law 92-603 also clearly establishes the principle of subsidizing per capita prepaid group practice (misnamed Health Maintenance Organizations). AAPS has long viewed
HMOs as devices by which labor union bosses
can secure control over physicians. Their passionate advocacy of establishing HMOs and subsidizing their development with tax funds fully confirms our position. It should be noted that the
AMA is on record in favor of the use of tax funds
for "experimental" development and operation of
HMOs. It should also be remembered that HMOs
(by another name) and imposition of governmentdictated standards of medical care were two of
the schemes devised by the socialists to achieve
gradual government control of the practice of
medicine.
For further evaluation of HMOs, see
the statement of Dr. Thomas G. Dorrity,
HMOs versus Ethical Medicine, which
contains the main points against this legislation. Additional information is contC""'1ed in AAPS Emergency Bulletin No.
5-72, October 20, 1 9 7 2, "Congress
Authorizes Further Interference in the
Practice of Medicine - HR-1."
Don't pin your faith on an instrument, such as
HMO, that by experience has shown no promise
nor performance of effective action in improving
medical care or reducing its costs. Pick up the
cudgel yourself and begin to fight to preserve
the rights and the freedoms of patients and physicians. You will be surprised to find out how many
people will agree with you when they begin to
understand the truth.
Apologists for this iniquitous law - and unhappily that includes the AMA - have persistently
evaded the real truth about it. They have sought
to dismiss as of no consequence the foct that a
PSRO established by a medical society will be a
collaborative agent of HEW and under its ironhanded control. They have avoided mentioning
that a PSRO organized by a medical society will
be an arm of that society - it will not be a wholly
independent entity - and will generate a conflict of interest when its affinity for the medical
society conflicts with its duties as an agent of
government. Those who plan collaboration have
not warned physicians and the public of the danger to medical freedom and the threat to the
quality of medical care inherent in this offensi'te
law.
Physicians cannot look to the AMA
for either manpower or finances to carry on a campaign to save private medicine f r o m bureaucratic. interference
through the mechanisms of PSROs and
HMOs. Whatever fight is carried on must
be waged by physicians individually
and through AAPS. The truth is that
AAPS is the only national organization
unyieldingly dedicated to preserving the
practice of private medicine and the
freedom of all physicians to practice
ethical medicine as their training and
judgment dictates for the best interests
of their patients.
NEW METHOD OF
DELEGATE SELECTION PROPOSED
SPECIAL FEATURES OF THE MEETING
I have requested the Speaker of the House

of Delegates, R. L. Campbell, M.D., to devise
a new system for the selection of delegates.
Article 5, Section 3 of the AAPS By-Laws is too
restrictive to allow sufficient time following election of delegates and before the Annual Meeting
to notify members who have been elected.
Members should understand that
home office was not responsible for
delay in notifying elected delegates
fore the meeting this year. There
was insufficient time.
the
the
bejust
Since a change in the By-Laws is necessary, a

new system should be proposed at the April convention so it can be adopted in October at the
San Francisco meeting.
The President's Luncheon on Thursday, October

12th, at which Dr. Thomas G. Dorr1ty (Memphis,
Tennessee) delivered a stirring message "YOU'RE
the Doctor;" Thursday evening Fiesta at the Shady
Oaks Country Club with dining Mexican style
and dancing; a "get acquainted" mixer breakfast
on Thursday morning; organization-membership
breakfast Friday morning; and an excellent address at the Friday evening Banquet by The Honorable Ezra Taft Benson, Former Secretary of
Agriculture.
One of the highlights of the Meeting was a
slide presentation by Dr. John R. Schenken (Omaha, Nebraska) on "Life of Christ as Portrayed by
Great Artists." This event was hosted by the AAPS
Woman's Auxiliary.
SPEAKERS
Hopefully, a By-Laws change, effective for the
Annual Meeting in 1974, will allow at least two
months for notification of elected Delegates before the Meeting.
AAPS FORT WORTH MEETING

The Association's Annual Meeting in Fort Worth
October 12-14 was an outstanding success. We
had a good turn out and as good as the Meeting
was in St. Louis with our special Banquet guest,
The Honorable Enoch Powell, people who attended both said this was the best Meeting that AAPS
has had.
There were two panels presented: One on "Issues and Answers: Medicine" - with panelists Drs.
Robert Raskind (Bakersfield, California) who spoke
about "The Kaiser-Permanente Plan" and discussed
first hand, the shocking knowledge of how the
prepaid group practice short-changes the patient
and inhibits the physician from providing the best
medical care; Robert Sade (Boston, Massachusetts)
who spoke on "The Right to Medical Care: A
Refutation" and David Allan (San Diego, California) who brought information on "Health
Maintenance Organizations." The moderator for
this session was Dr. Dorrity.
NEW DIRECTOR
The Friday afternoon panelists on "Issues and

Answers: Politics" were M. Stanton Evans (Indianapolis, Indiana) whose Topic was "The 1972
Election ... and What Follows;" Gaylord Parkinson, M.D. (El Cajon, California) who spoke on
"Prospects for Conservatism in the GOP" and The
Honorable John R. Rarick (Washington, D. C.)
whose subject was "Prospects for Conservatism in
the Democratic Party." This discussion clearly
developed the idea that the members of the medical profession in private practice would face a
hostile federal government in 1973 regardless of
who was elected to office. The moderator for this
session was Frank K. Woolley, AAPS Executive
Director.
Dr. William M. Komanetsky (St. Louis, Missouri) is serving his first two year term as a Director from the Assembly.
Kenneth W. Ryker, Captain, USAF, Retired (Fort

Worth, Texas), gave an outstanding address Friday morning on "What lnfl.ation Means to You."
The key to saving ourselves from destruction by
NEW OFFICERS .
The Officers elected for 1972-73 are: Drs. Robert S. Jaggard (Oelwein, Iowa), President; Donald Quinlan (Northfield, Illinois), President-Elect;
Marie Stanbery (New Orleans, Louisi-ana), Secretary; E. E. Anthony (Fort Worth, Texas), Treasurer,
and R. L. Campbell (Corsicana, Texas), Speaker.
inflation is control of government spending.

Condensed copies of all these presentations will
be made available at the earliest opportunity.
RESOLUTIONS ADOPTED
Reiterate its insurance philosophy for its members to wit: The contract between insurer and insured does not involve the doctor who has a separate and unrelated contract with his patient,
FURTHER RESOLVED that the Aetna Life and
Casualty Insurance Company and any other offending parties be notified of this action and this
philosophy regarding insurance; Study of _ P.L.
crate and unrelated contract with his patient,
89-97 Title XIX (Medicaid); RESOLVED that the
Veterans Administration be urged to permit veterans free choice of physician and facility, with
payment of the physician the responsibility of
the patient with reimbursement of the patient
the responsibility of government.
COMMITTEE CHAIRMEN REPORTING

Ethics Committee, Curtis W. Caine, M.D., Chairman (Jackson, Mississippi); Annual Meeting, read
by Secretary Marie Stanbery, M.D. (New Orleans,
Louisiana); Nominating Committee, read by Dr.
Stanbery; Membership, Paul W. Leithart, M.D.,
Chairman (Columbus, Ohio); Committee for Medical Students, Interns and Residents, Charles W.
Johnson, M.D., Chairman (San Antonio, Texas),
and Legislative, Robert J. Moorhead, M.D., Chairman (Yazoo City, Mississippi).
AAPS WOMAN'S AUXILIARY

Mrs. Maurice W. Peterson presided over the
business session of the Woman's Auxiliary. In
recognition of her past endeavors., Mrs. Peterson
was presented with a gift from the Association at
the Friday evening Banquet.
The local Auxiliary Committee, under the direction of Mrs. E. E. Anthony and Mrs. Mal Rumph
of Fort Worth, planned and arranged a beautiful
Luncheon on Friday.
Officers for 1972-73 are: Mrs. Michael R. Saxon, Chairman; Mrs. Robert G. England, Recording
Secretary; Mrs. Paul W. Leithart, Treasurer; Mrs.
Maurice W. Peterson, Immediate Past Chairman
and Program Chairman, and Mrs. Albert G. J.
Cullum, Membership Chairman.
FUTURE MEETINGS
Make plans now to attend the two big AAPS
Meetings next year - the Private Doctors Institute
in Oak Brook, Illinois, April 12-14, and the Annual
Meeting in San Francisco, California, October
11-13.

312/325- 7911
Index No. 17
December, 1972, Volume 27, No. 12
AMA Embraces Nationalization of Medicine
Others Pleaded for Reason - In Vain
,ti
Question Ignored
Full Support and Assistance

;'- California HMO Saddles Physicians with
Malpractice Liability
~
FDA Feels Physician Pressure and

May Forget Proposed Drug Rule
Season's Greetings
AMA EMBRACES NATIONALIZATION

OF MEDICINE
The expected has happend! While formerly posing as the stern steady champion of the practice
of private medicine, the American Medical Association, by formal action of its House of Delegates,
has become a willing, even eager, collaborator in
the destruction of medical freedom in the United
States. The AMA House of Delegates in Cincinnati
last month voted to help the federal bureaucracy
take another giant step toward complete nationalization of medicine.
Hearings and proceedings at the meeting were permeated with self-serving
pleas by promoters of collaboration for
monopoly power and control of medicine by insiders, such as Blue Shield and
Medical Foundations.
A majority of the House, deaf to the pleas of
the minority that they refuse to capitulate to
government control, agreed that the AMA should
take the leadership in drafting rules and regulations that will force physicians to justify their medical decisions to federal employees and conform
to government's written and imposed standards of
diagnosis and treatment in the care of Medicare,
Medicaid and many other specified groups of
patients. These rules and regulations will be drafted to implement Professional Standards Review
Organization provisions of P. L. 92-603 (HR-1)
signed by President Nixon October 30 (see November, 1972 News Letter). Meanwhile, the next
step is being prepared by Senator Edward Kennedy (D. Mass.) and organzied labor's Committee
for National Health Insurance. He will begin hearings in California and Pennsylvania early next
year on his proposal which will again carry the
number S-3.
The AMA House also gave its formal blessing
to the use of tax money to subsidize closed-panel
per capita prepayment group practices, euphemistically called Health Maintenance Organizations (HMO's) .Ex-Speaker Roth testified that "AMA
had stood still for 110 HMO's," even though Dr.
Hampton of Florida told the Delegates:
"A national study to be published soon
on the increase in the costs of health
care in the last 18 years shows the unit
cost has increased 293% for HMO's as
contrasted to only 103% increase for
fee-for-service care."
I did not believe I would ever see the day the
AMA would demonstrate a "willingness bordering
on determination" (as the American Medical News
put it) to become a collaborator with government
in the destruction of medical freedom and the
rights of physicians and patients. Yet, at Cincinnati
I saw just that. By its action, the House, under the
guidance of the Board of Trustees and the stoft,
reversed AMA's historic defense of volul"tarism
under which medicine has flowered - and endorsed

compulsion. Never mind interference with physicians using their best judgment in the care of
patients. Forget principle - go along with government dictation and control in order to get along
personally.
In private conversations, numerous AMA officials admitted that what was being done was
wrong but gloomily and pathetically wondered
what could be done to stop it.
Frankly, I find it impossible to reconcile the
AMA's endorsement of ultimate lay control of
physicians' medical judgment with the Association's professed adherence to ethical principles.
(See AMA Code of Ethics). Political control of
physicians' decisions makes a mockery of complying with scientific and high moral values.
The whole session was depressing. It was chillingly reminiscent of Hitler's Germany to hear a
speaker on Saturday recite how, under existing
federally subsidized and controlled Medical Foundations, the Foundation was substituting its judgment for that of the attending physician. Also,
one shuddered when a Delegate said:
"We called the bad boy in and straightened him out."
He left the impression that he thought that all that
was involved was the "good guys versus the bad
guys." It became quite clear that the Delegates
had probably not read and surely did not understand the implications of Public Law 92-603.
The provisions of this Law make it clear that:
The physicians .:ire being deprived of

proper control over the exercise of medical, clinical judgment on a case by case
basis.
Federal employees will substanttally direct medical practice.
Patients receiving care paid for under

Social Security are to be given secondclass care (i.e., most economical physician,
as determined by HEW computer - both
before and after admission and hospital
care, lab work, x-rays, etc.).
Medical societies are not going to run the

PSRO's; medical societies will become
tools of HEW clerks to control doctors.
Also, the Law provides: Norms of diagnosis and

treatment, to be dictated nationally and complied
with locally; certifications upon certifications are
mandatory; J>enalties in the form of fines up to
$5,000 and sanction~ are to levied against physicians providing services (including ordering drugs,
x-rays, lab tests, hospitalization) which federal
employees judge were medically unnecessary or

not the most economical; the bureaucracy in
collecting the fines will withhold refund payments
due physicians on income taxes or any other
money owed from any government programs, such
as farm payments, rentals, etc.; sanctions will also
be applied by enlisting the support of any other
professional or governmental organization having
influence to enforce compliance (this would include bringing pressure through the physicians'
medical societies, licensing boards, etc.); a physician is guil~ until he proves himself innocent;
government employees, including clerks working
for a Medical Foundation, are exemet from civil
liobili!Y; costly~pP.eals must be made by a physician to the Secretary of HEW, who is the same
authority who found him guilty initially, before he
can appeal to a court for help; a physician's malr>ractice liability will be increased unless performance is where, when, how and as the bureaucracy dictates; confidenility will be effectively destroyed because laymen will be authorized
to dig into a doctor's private patient files; PSRO's
are directed to promote acceptance by physicians,
encourage participation, publicize activities in
medical periodicals (they will use "financial leverage" to obtain articles favorable to more government interference); profiles of patients and
physicians will be compiled; a physician cannot
ordinarily be responsible for reviewing cases in
a hospital in which he has active staff privileges;
most utilization review, tissue and other committees as now constituted will J)robablt no longer
exist; and doctors will have to justify medcial decisions in advance.
MR. Tierney, MR. Ball, MR. Weinberg~, proteges of MR. Wilbur Cohen and other MISTERS
will be telling physicians, throug~paid p.b_ysician
Quislings, how and when to practice medicine.
The burning question for physicians to answer is:
"How will collaborating with this unethical mess
of red tape, interference, and political intrigue
improve the quality of medical care?"
Doctor Tom Parker, an AMA Delegate from
South Carolina and a member of the AAPS Board
of Directors, advised the House of Delegates of
AMA that in proposing to embrace PSRO's, they
should consider three things:
1. That "this is a major policy decision"
2. That the report of the Board of Trustees
"reJ>resents a complete reversal of our
philosop_hy"
3. That "this is a prime example of futile
haste."
''The proponents of involvement now," Doctor
Parker declared, ~'insist that we must participate
in the preparation of regulations as though our
counsel would be decisive in determining the

thrust of the directives. You will recall that while
the regulations of Medicare were being promulgated, we were assured by the Board of Trustees
with jubilation that we had secured 21 changes
of tremendous importance in the proposed regulations, only subsequently to find that 18 of them
were nullified.
''The intention of the federal government is to
direct and control the delivery of medical and
health care to the American people."
In his eloquent plea for the exercise of prudent
judgment, Doctor Parker asked, ''What should we
do?" and replied: ''Well, you know what I would
do. As President Jackson said to Chief Justice
Adam, I would say, 'You made your decision, now
let's see you enforce it.' "
He urged the House not to do what everyone
knew was wrong by quoting the following from
George Washington, who at the time the United
States Constitution was being drafted, said:
"If, to please the people, we offer what
we ourselves disapprove, how can we
afterward defend our work? Let's raise
a standard to which the wise and honest
can repair; the event is in the hands of
God."
OTHERS PLEADED FOR REASON - IN VAIN
Doctors Jack Schreiber of Ohio and Joseph
Boyle of California warned the Delegates against
acting in panic and in haste. Speaking before a
Reference Committee, Doctor Schreiber expressed
the fear of many of his associates when he said:
"I would hope for the future of this organization
(A.MA) that we do not become agents of the federal government." And he added: "It seems to me
we are taking the first step toward regimentation
of the medical profession through the PSRO, if not
in itself, in what it will lead to. You cannot participate with the federal government and maintain freedom to practice m e d i c i n e." Doctor
Schreiber warned that there is nothing in the PSRO
Law "that will make this any better than the Medicare and Medicaid mess," and he reflected on the
sad fact that members of the House of Delegates
were "falling all over ourselves" to "stand in line
to implement this program that a month ago, before it was signed into Law, we said was unworkable and dangerous."
Doctor Boyle urged Delegates to "recognize
that it (PSRO Law) would impose upon all of medicine a single monolithic bureaucratic regulatory
body." He said to ignore the Law would be a
disaster, but "to embrace this Law now and to become its architects of the rules and regulations as
our body of rules and regulations ... would be
an equal disaster because we would then indeed
become the advocates of this bureaucratic srstem." Doctor Boyle recommended the AMA limit
its participation to an advisory role to counsel
HEW "as to how the imposition of certain regulations may interfere with the practice of medicine
and impede our ability to provide quality - not
that it become our plan." He also suggested the
AMA assist medical societies in establishing voluntary peer review programs that work so effectively
that HEW will of necessity be forced to accept
them as satisfying the requirements of the PSRO
Law.
"It is my opinon," Doctor Boyle said,
"that now is not the time to conclude or
accept that the profession must dance to
a jig which is being composed in the
Department of Health, Education and
Welfare, but rather recognize that we
have ample time to score and choreograph and sell our own program. We
have an opportunity now to develop a
program of our own choosing, to police
ourselves and provide assistance to others who may need help in identifying
what is proper policing of the profession
and proper evaluation of quality of care
and not assume that we can assign this
responsibility to a governmental agency
comparable to that which has demonstrated that it cannot even run the post
office."
QUESTION IGNORED
Doctor Thomas G. Dorrity, AAPS Immediate
Past President, at the special Saturday conference
on PSRO sponsored by the Council on Medical
Service, asked: ''When you're talking about cost,
what do you mean? Are you talking about the
cost of medical core that doctors can control, or
are you talking about hospitalization - the rooms,
the drugs, the ancillary facilities? All the doctors
can control is the cost of services they render.
When you accept the challenge thrown by government to control costs, this is impossible. When
it is finally evident to the doctors, as well as to the
politicians, that the doctors cannot control all of
these costs, then what? That's the important thing
about this issue."
Members of the panel mumbled, made
no answer and seemed to be relieved
when someone else asked a question
more compatible with prevailing sentiment.
FULL SUPPORT AND ASSISTANCE
While the AMA was pondering its role as a
collaborator with government against the nation's
physicians, President Nixon announced the choice
of Casper Weinberger to succeed Elliot l. Richard-
son as Secretary of HEW. The chairman of the

board of trustees, speaking for the Association,
quickly sent a wire promising "full support and
assistance" to the new HEW chief. That sent
a chilling ripple of apprehension through those
of us at the meeting already troubled by the
evidence that AMA officers and executive staff
could not see that capitulation to slavery is no
way to preserve freedom. That pledge of "full
supP-ort and assistance" confirmed for many of us
that the AMA, once deeply dedicated to fending
off government intervention in medicine, has now
become devoted to feeding at the federal trough.
member physicians must carry a $100,000/

$300,000 minimum malpractice insurance policy
which designates the HMO as a co-insurer (thus
making the HMO the beneficiary of the physidans
private malpractice policy and at no cost to the
HMO). It is further stated in the same HMO contract, that the physicians clinical records of his
patients are to be the property of the state.
HMO's are provided for in public law 92-603.
As evidence that the AMA has become hypnotized by federal tax dollars
that are and will be made available to
medical societies, please reflect on the
following incident at Cincinnati. A Delegate from Oklahoma offered a late resolution relating to guidelines for health
care under federal housing and urban
development programs. R e c e n t AMA
rules require a two-thirds vote for acceptance of late resolutions. The Hou~e
refused to give the necessary votes. Undaunted, the resolution's sponsor made
one plea for reconsideration. He noted
75 to 100 millions of dollars were available under the HUD programs. The House
reversed itself on the strength of that
plea and allowed the late resolution to
be introduced. It goes without saying
that the resolution, only slightly altered,
was readily passed by the House.
The scuttlebut in Washington is that the FDA

may quietly bury that highly controversial proposal the agency said was offered for the purpose
of clarifying the legal status of approved labeling
of prescription drugs. The proposed revision of
regulations would clearly have constituted further unwarranted bureaucratic interference in the
practice of private medicine. It generated a
storm of protest from scores of members of AAPS,
as well as other physicians and medical organizations. AAPS members were requested to write to
FDA protesting this prospective abuse of FDA regulatory authority. The response was remarkable.
Copies of the letters received at AAPS headquarters demonstrated not only that our members were
responding in large numbers, but also that they
were exceptionally well informed on the proposed
regulation.
CALIFORNIA HMO SADDLES PHYSICIANS

WITH MALPRACTICE LIABILITY
A San Diego HMO contract provides that all
FDA FEELS PHYSICIANS PRESSURE AND

MAY FORGET PROPOSED DRUG RULE
It is clear that FDA's bureaucracy was attempting to overreach its legal authority. It is also clear
that if FDA does forget the whole thing, as
seems likely, the overwhelming res~onse of AAPS
members to this threat to medical freedom will
have had a significant influence on FDA officials
in reaching that decision.
gea~wn'g Q~eetingg
At this Christmas Season, let us remember that Jesus was a physician who lived by the moral code
"Love your neighbor." Let us follow His example and let us live in peace with our fellow men, expressing
our love for our neighbors, never initiating the use of force against honest persons, and refusing to give our
sanction to those people and programs that do this by force.
fr.oil.
~
Pre
Enclosure:
AAPS October, 1972 Resolutions
PRIVATE DOCTORS INSTITUTE, Oak Brook, Illinois, April 11-14, 1973

ANNUAL MEETING, San Francisco, California, October 11-13, 1973

312/325-7911

AAPS News 1972

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1972 INDEX

AAPS NEWS LETTERS and BULLETINSJANUARY THROUGH

AAPS Annual Meeting

AAPS Group Hospital Money Program

"Acupuncture: Old Chinese Treatment"

Benson, Ezra Taft

Bornemeier, Wolter, M.D.

Boyle, Joseph, M.D.

Brian, Earl W., M.D.

Britton, Melvin C., M.D.

Brookings Institution Report

Aetna Life Insurance Campany

Bureau of Labor Statistics

AMA Annual Meeting

Cathles, Lawrence M., Jr.

AMA Code of Ethics

Chisholm, Shirley A., Repr.

American Federation of Labor-Congress

Caine, Curtis W., M.D.

Camardese, N. M., M.D.

Allan, David, M.D.

Anthony, E. E., M.D.

Adler, Lawrence, M.D.

Alford, T. Dale, M.D.

AAPS Index, 1971

Campbell, R. L., M.D.

AMA Council on Medical Education

AMA House of Delegates

Cook County (Ill.) Hospital

AMA Legislative Staff

"Crisis '72" Cassette

"Crisis 72" Educational Campaign

American Medical News

Cullum, Mrs. Albert G. J.

Current Government Spending

Health Insurance Plan of Greater

"HMO's Versus Ethical Medicine"

Hogue, Robert J., Jr., M.D.

HR-1 (Public Law 92-603)

Health Maintenance Organizations

"Declaration of Interdependence, A"

Democratic Platform Committee

HR-15474 (Public Law 92.... 14)

England, Robert G., M.D.

England, Mrs. Robert G.

Department of Health, Education, and

House Ways and Means Committee

Jaggard, Robert S., M.D.

Finder, Richard J., M.D.

Finkel, Barney W., M.D.

"Facts for Patients" Series

Food and Drug Administration

John Hall Medical Society, Inc.

Johnson, Lyndon. Baines

Grady, John L., M.D.

Kingfisher County (Okla.) Medical Society

Hazardous to Your Health

Health Care Foundation of

Health Insurance Association of America

Komanetsky, William M., M.D.

National Conference of Christians

Leithart, Mrs. Paul W.

Letter to AAPS Wives

Loma, Gerry, Ph.D.