Tobacco Documents Online

FR~)N: DA~'E: SUBJECT : Pete Sparber cc: }'red Panzer Trish Milita, OgJlvy & Mather Ric~ Sullivan October 30, 1984 Update on National Committee for Quality Health Care As you know, Mike Allen in our Sacramento office met with David WJn.ston, president of the National Committee on Quality Health Care in California last Friday. The meeting was arranged to discuss the potential for TI/A-K to work wilP the Committee toward opposing excise tax earmarking to fund Medicare including sponsoring a seminar on the issue and/or fronting a major research study on the best way to finance the Medicare program. Winston was noncommital in terms of the seminar and the study, but he did sa) that the Committee would oppose any effort at either the state or federal level to earmark excise taxes for health programs in return for a ~ledge from tobacco company members of TI ~'o oppose actively state rate settin~ for hospital care. Mike and I have arranged a meeting for you and Winston on Nov. 13 in Washington to discuss the relationship it, greater detail. State rate setting is another phrase for prospective reimbursement, ger, erally applied to all payors including state and federal health programs an¢ private insurance carriers. State rate setting commissions establish pa)ments for hospital services on a prospective basis and apply reimbursement based on those rates. Both for-profit and not-for-profit hospitals have lobbied at the state level to oppose this concept, but are having little success. In 1983, four states enacted rate setting legislation; th~s year five more steres enacted similar legislation. The following states have rate setting requirements: Connecticut, Maryland, Massachusetts, New Jersey, New Y,~rk, Washington, Wisconsin, West Virginia and Maine. Minnesota does not yet have rate setting, but it is being considered. And, of course, Arizona has a rate setting initiative on the Nov. 6 ballot. A K ASSOCIATES. INC. W~. DC Off~e ~0 K St,~ NW S~ t If,5 • Wa£~.~c- DC Ti51380013

Your concern that tobacco company opposition to state rate settin~ may upset labor-backed coalitions is well founded. In Arizona, the Arizona Retired Teachers Association and the Central Arizona Labor Council, AFL-CIO, are strongly backing several state mate setting proposals on the Nov. 6 ballot. Prior to our meeting with Winston, we should determine how far we can go in publicly opposing state rate setting and to what extent the tobacco companies, rather than TI, can get out in front on the ~ssue. The National Committee for Quality Health Care has been heavily involved in battling this issue. The group works somewhat Jn conjunction with the Federation of American Hospitals and the American Hospital Association. To my knowledge, the Committee does not employ its own state lobbyists. The NCPQC is a relatively new association. It was formed in ]98]o to mobilize the various and diverse hospital groups and suppliers against expensive government regulation and congressional cost containment proposals. In 1981, the group prepared and submitted to the government a lenghthy set of proposals for deregulating the health care industry. The following year, the group prepared and distributed an analysis on two key health policy issues: pr~spective reimbursement for hospitals and the physician's role in the health care cost equation. Last year, as changes in hospital reimbursement were enacted (DRGs), membership grew and the group expanded its interests to hospital captial cost reimbursement and state rate setting. And then early this year, it hired a full-time executive director: Daniel Bourque, former deputy admJnJstr.~tor of the Health Care Financing Administration. Commitee President David Winston is a powerful force within the organization. He was one of the founding members of the Committee snd because of his extensive background in health policy issues and close connections with the White House, commands a great deal of respect. Winston served as health policy advisor to Reagan in California and in Washington. He was a minority staff director of the Senate Committee on Labor and Human Resources. Members of the NCHQC Board of Trustees are listed below. Jack R. Anderson Vice Chairman Republic Health Corporation Karl D. Bays Chairman and CEO American Hospital Supply Corp. Robert L. Biblo President Health Insurance Plan of Greater New York Don L. Arnwine Presiden~ Voluntary Hospitals of America, ]~nc. John C. Bedrosian National Medical Enterprises, Inc. (former President of FAH) Francis " o. Byrnes Managing Director Blyth Eastman Paine Webber Health Care Funding, ~nc. Ti51380014

|{. Robert Cathcart President Pennsylvania Hospital Philadelphia, Pennsylvania Theodore Cooper, M.D. Vi,:e President Up ~ohn Company Winfield C. Dunn, D.D.S. Senior Vice President Hospital Corporation of America (c, rrent President of FAH) Robert Frishman Vi,:e President Memorial Health Services Lon~ Beach, California Pat N. Groner President Emeritus Baptist Regional Health Services Pe~sacola, Florida Sister Grace Marie Hiltz, S.C. President Sisters of Charity Health Care Systems, Inc. Rotert F. Krohn President Herni ngsor,, Durham & Richardson William Learnard Vice President SmJthKline Beckman Corp. Samuel P. Martin, M.D. Director University of Pennsylvania School of Medicine P. Douglas Powell Pa~ tner Ernst & WhJ. tney Thomas W. Reed President American Health Capital, Inc. David C. Clapp Partner Goldman Sachs & Co. Michael E. DeBakey, M.D. Chancellor Baylor College of Medicine Houston, Texas Robert J. Erickson Senior Vice President Kaiser Foundation Health Plan Thomas B. Gerlach Senior Vice President Turner Construction Company W. August: Hillenbrand Vice President }~'i] lenbrand Industries B. l.ee Karns President CompCare Corporation Gerald D. Laubach, M.D. President Pfizer, Inc. Charles $~. Lindstrom Vice President St. Luke's Hospital ~ansas City, Missouri C. William Pollard President ServiceMaster Industries, Inc. Joseph H. Powell President Baptist Memorial Hospital Memphis, Tennessee Elliott C. Roberts, St. Director Cook County Hospital T151380015

- 4_ William E. Simon Chairman Wesray Corporation Ri-_hard I,. Stensrud Di rector St. Louis University Medical Center Do:~a]d C. Wegmiller Presi dent Health Central System David A. Winston Vic:e President AmerJ can Health Capital, Inc. C. Thomas Smith President Yale-New Haven Hospital R. Zach Thomas, Jr. Chairman Emeritus Charlotte, North Carolina M. Keitb We~kel, Ph.D. Greup Vice President American Medical International, (former President of FAH) I also have attached a current membership list. TI51380016

MEMBERSHIP F. K. Ackerman, Jr. Senior Vice President and Administrative Director Geisinger Medical Center Danville, PA 17821 John H. Appleyard Executive Vice President Hospital Research & Development Institute, Inc. 1205 Moreno Street Pensacola, FL 32501 Jack A. Anderson Vice Chairman Republic Health Corporation 14951 Dallas Parkway, Suite Ii00 Dallas, TX 75240 Richard Barr, President Southwest Community Health Services Albuquerque, NM 87102 Karl D. Bays Chairman of the Board Chief Executive Officer American Hospital Supply Corporation One American Plaza Evanston, IL 60201 John Bedrosian Senior Executive Vice President National Medical Enterprises, Inc. 11620 Wilshire Boulevard Los Angeles, CA 90025 Robert L. Biblo, President Health Insurance Plan of Greater New York 220 West 58th Street New York, NY 10019 Charles C. Boone, President Spartanburg General Hospital 101 East Wood Street Spartanburg, SC 29303 John J. Buckley, Jr. Administrator Saint Anthony's Hospital P.O. Box 950 Amarillo, TX 79176 James E. Buncher Chairman and CEO T151380017

Byron L. Bullard, President Presbyterian Hospital P.O. Box 33549 Charlotte, NC 28233 Francis J. Byrnes Managing Director Blyth Eastman Paine Webber Health Care Funding, Inc. 1221 Avenue of the Americas New York, NY 10020 George B. Caldwell President Lutheran General Hospital 1775 Dempster Street Park ~dge, IL 60068 John T. Casey, President Presbyterian/St. Luke's Medical Center 601 East 19th Avenue Denver, CO 80218 H. Robert Cathcart President, Pennsylvania Hospital Eight & Spruce Streets Philadelphia, PA ].9107 Erie Chapman, III, J.D. President/CEO Riverside Methodist Hospital 3535 Olentangy River Road Columbus, OH 43214 David C. Clapp Partner Goldman Sachs & Company 55 Broad Street New York, NY 20004 Jack M. Cook Executive Director The Christ Hospital 2139 Auburn Avenue Cincinnati, OH 45219 Theodore Cooper, M.D. Executive Vice President Upjohn Company 7100 Portage Road Kalamazoo, MI 49001 James C. Crews, President Charleston Area Medical Center P.O. Box 1547 Charleston, WV 25326 Ti51380018

William G. Crone President and Executive Director Naples Community Hospital, Inc. 350 Seventh Street, North P.O. Box 2507 Naples, FL 33939 Francis J. Cronin, President Elliot Hospital 955 Auburn Street Manchester, NH 03103 Winfield C. Dunn, D.D.S. Senior Vice President Government Relations Hospital Corporation of Americaa One Park Plaza P.O. Box 550 Nashville, TN 37202 Dr. Carl Eisdorfer Montefiore Medical Center iii East 210th Street Bronx, NY 10467 Robert J. Erickson Senior Vice President Kaiser Foundation Health Plan, Inc. One Kaiser Plaza Ordway Building Oakland, CA 94612 John W. Estabrook President, Nebraska Methodist Hospital 8303 Dodge Street Omaha, NB 68114 William H. Flannagan President Roanoke Memorial Hospital P.O. Box 13367 Roanoke, VA 24033 Thomas J. Foley President & CEO Overlook Health Systems 193 Morris Avenue Summit, NJ 07901 Vernon Garrett Acting President Memorial Hospital System 777 Southwest Freeway #252 Houston, TX 77074 Richard Froh Vice President of Government Relations, Kaiser Foundation 900 17th Street, N.W., Suite 1014 Washington, D.C. 20006 Ti51380019

Thomas B. Gerlach Senior Vice President Turner Construction Company i0 Penn Center, Suite 700 Philadelphia, PA 19103 Pat N. Groner President Emeritus Baptist Regional Health Services P.O. Box 18500 Pensacola, FL 32523-8500 Patrick Hays President, Sutter Community Hospitals of Sacramento 28th & L Streets Sacramento, CA 95814 James D. Helzer, President Community Hospitals of Central California Fresno and R Streets P.O. Box 1232 Fresno, CA 93715 James L. Henry President Baptist Medical Center of Oklahoma, Inc. 3300 Northwest Expressway Oklahoma City, OK 73112 W. August Hillenbrand Executive Vice President Hillenbrand Industries Highway 46 Batesville, IN 47006 Sister Grace Marie Hiltz, S.C. President Sisters of Charity Health Care Systems, Inc. 345 Neeb Road Cincinnati, OH 45238 Allen E. Howland Interim President Akron General Medical Center 400 Wabash Avenue Akron, OH 44307 David P. Hunter, President Nexus Healthcare C6rporation Suite 201, Summey Bldg. Madison Avenue Mr. Holly, NJ 08060 Ti51380020

Franklin P. Iams President Fairfax Hospital Association 8001 Braddock Road Springfield, VA 22151 Byron Irwin President Alta Bates Corporation 2855 Telegraph Avenue, Room 610 Berkeley. CA 94705 T.L. Jacobsen President Bayfront Medical Center, Inc. 701 Sixth Street, South St. Petersburg, FL 33701 Gordon N. Johnsen President Madison General Hospital 202 South Park Street Madison, WI 53715 David A. Johnson Executive Director Deaconess Hospital, Inc. 600 Mary Street Evansville, IN 47747 Emmett R. Johnson, President Baptist Medical Centers 3201 Fourth Avenue, South Birmingham, AL 35222 Lo R. Jordon Chief Executive Officer Miami Valley Hospital One Wyoming Street Dayton, OH 45409 B. Lee Karns, President CompCare Corporation 660 Newport Center Drive Fourth Floor Newport Beach, CA 92660 Dr. William Kiser Chairman, Board of Governors Cleveland Clinic Foundation 9500 Euclid Avenue Cleveland, OH 44106 Ti51380021

Robert F. Krohn, President Henningson, Durham & Richardson 8404 Indian Hills Drive Omaha, NB 68114 Bernard J. Lachner President Evanston Hospital 2650 Ridge Avenue Evanston, IL 60201 Dr. Gerald D. Laubach President Pfizer, Inc. 235 East 42nd Street New York, NY 10017 William Learnard Vice President SmithKline Beckman Corp. One Franklin Plaza P.O. Box 7929 Philadelphia, PA 19101 Laurence R. Lee Senior Vice President for Administration Abbott Laboratories 14th Street & Sheridan Road Abbott Park D-373 North Chicago, IL 60064 Barry Passett, President Greater Southeast Community Hospital 1310 Southern Avenue, S.E. Washington, D.C. 20032 Charles C. Lindstrom Executive Vice President St. Luke's Hospital Wornall Road at 44th Street Kansas City, MS 64111 G. Bruce McFadden President Middlesex General University Hospital 180 Somerset Street New Brunswick, NJ 08901 Joseph Jenckes Vice President, Washington Abbott Laboratories 1710 Rhode Island Avenue, NW Suite 300 Washington, D.C. 20036 T!51380022