Tobacco Documents Online

TO: Pete Sparber, The Tobacco Institute cc: Trish Milita, Ogilvy & Mather FROM: Rick Sullivan DATE: September 24, 1984 I spoke with Jim Smith of HCA last Friday evening about setting up a meeting between you, other TI officials and Sam Howard. Jim said he would arrange the meeting for the next time Sam is scheduled to be in Washington -- sometime after Congress adjourns. Jim reminded me that he often works closely on tax issues with Chuck Merin of the TI federal relations department. He thinks very highly of Chuck and just wants us to make sure that we are not stepping on any toes if the meeting is arranged. Otherwise he has no problem. I also have checked on the background of the American Committee (not Council) for Quality Health Care. The ACHQC is an association that bills itself as representative of all sectors of the health care industry. It represents non-profit and for-profit hospitals, health maintenance organizations, corporations and professional firms which supply goods and services to health care providers. The group does not, at least at this point, represent any physician groups. I have attached for your information a membership roster. The ACHQC is a relatively new association, but it is growing in membership and influence. It was formed in 1981 to mobilize the various and diverse hospital groups and suppliers against expensive government regulated congres- sional cost containment proposals. In 1981, the group prepared and submitted to the government a lengthy 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: prospective 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 capital cost reimbursement. And then early this year it hired a full-time executive director: Daniel Bourque, former HCFA deputy administrator. At this point, the committee has not concentrated on long-term financing issues, centering instead on state rate setting proposals for hospitals and the capital cost issue. A-K ASSOCIATES. INC. Sacrarner~o Office 1225 - 8th S#eeL Suite 590 • ~c~arnento. CA 95814 (916) 446-7505 • Telecofj~ 1916) 443-4694 Wash~j(oo. D C~ Office 1800 K Street. NW. Su~'e :1105 ~, Wastwn<:jton. D C 20006 T!51380039

-2- It is too early to say with any certainty whether this group could be helpful in our overall excise tax earmarking plan. I think, however, that it definitely has potential. My personal relationship with Smith and my profes- sional rapport with Bourque will give us good access. Bourque said he would have lunch with us after Congress adjourns. Moreover, the president of ACQHC, David Winston, is Mike Allen's personal friend. Winston served under Reagan in California and worked closely with Mike on many health issues. Both Mike and I arranged to have Winston appear as the keynote speaker at the annual convention of the Pathology Practice Association two years ago. Winston now serves as the health care advisor to the White House. I plan to contact this week to see when we can set a meeting with Winston. T151380040

TO: Pete Sparber, The Tobacco Institute cc: Trish Milita, Ogilvy & Mather FROM: Rick Sullivan DATE: September 21, 1984 SU£JECT: Notes on Conversation with Senate Finance Committee One of the top health staffers for the Senate Finance Committee called this afternoon to bring me up to date on several physician issues we have been working on. I used the occassion to feel him out on Medicare financing. The staffer reminded my that Sen. Dole had proposed earlier this year that another bipartisan commission be appointed when the 99th Congress convenes to study and recommend measures to f~nance the Medicare program. He said that yesterday Dole briefly discussed the commission idea with the health staff and decided that the commission probably would not be empanelled. The White House and other senators have given him no support on the issue. At the same meeting, the staff reviewed with Dole the most recent Medicare pro- jections announced by the Congressional Budget Office, which show that the Medicare HI trust fund will not face a deficit until 1992 at the earliest. These projec- tions, as far as Dole and his staff are concerned, have taken a lot of steam out of the movement for major Medicare financing reform next year st least in the Senate. As for excise tax earmarking, the staffer said that Sen. David Durenberger, chairman of the Health Subcommittee, remains inalterably opposed to funding Medicare in this manner. Dole has not expressed an opinion one way or the other. Tobacco excise taxes will, however, surface as early as next spring in the context of deficit reduction measures. It's unlikely that earmarking will get any serious consideration in the Senate. A-K ASSOCIATES. INC, Sacramento Office 1225 - 8th S~reeL Suite 590 • Sacramento. CA 95814 {916~ 446-7505 • Te~o~ (916'~ 443-4694 Wash~:J~on. D.C OPice ~1800 K Stree£ N W. Su~,~ ! 105 • Wash'ngtl. ,:~ [3 C ~ (2021887-5144 T!51380041

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 TI51380042

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 Ridge, 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 19107 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 T!51380043

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 0rdway Building 0akland, 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 TI51380044

Thomas B. Gerlach Senior Vice President Turner Construction Company 10 Penn Center, Suite 700 PhiIadelphia, 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 C~rporation Suite 201, Summey Bldg. Madison Avenue Mt. Holly, NJ 08060 TI51380045

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 L. 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 TI51380046

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 Ti51380047

Thomas F. McNulty Chief Financial Officer Henry Ford Hospital 2799 West Grand Boulevard Detroit, MI 48202 Peter J. Michel Brown, Wood, Ivey, Mitchell & Petty One World Trade Center New York, NY 10048 Glenn R. Mitchell Executive Director Alliance Health System Koger Executive Center Building 18, Suite 202 P.O. Box 220 Norfolk, VA 23501 Donald C. Morgan President C.J. Harris Community Hospital 59 Hospital Road Sylva, NC 28779 Eric B. Munson Director North Carolina Memorial Hospital Manning Drive Chapel Hill, NC 27514 Donald Murray Distributor Development Director Health Care Productivity & Svcs. 3M Center Building 225-5N-03 St. Paul, MN 55144 M. T. Mustian President Tallahassee Regional Medical Center Miccosukee Road and Magnolia Drive Tallahassee, FL 32303 Harry A. Nurkin, President Charlotte Memorial Hospital and Medical Center P.O. Box 32861 Charlotte, NC 28232 Nora O'Malley, Executive Director Northern Illinois Medical Center 4201 Medical Cente~ Drive McHenry, IL 60050 T!513,80048