620

NEWS RELEASE ON HOSPITAL AND MEDICAL
ASSISTANCE COSTS

January 15, 1968

Governor Agnew announced today that the National Governors'
Conference will undertake, at his request, an in-depth study of the
problems and causes of spiraling hospital and medical assistance costs.

Maryland is facing a $5 million deficit in its program this year and
will have to reduce the number of patients cared for as of July 1 un-
less effective controls are established, Governor Agnew has stated.

Other states are facing similar, or worse, financial problems.

Governor John A. Volpe of Massachusetts, chairman of the Na-
tional Governors' Conference, told the Maryland Governor he agrees
that "this is a matter which ought to concern the Conference. "

"As you point out, this problem is one which faces every state and
we have been wrestling with it here in Massachusetts for some time, "
Governor Volpe said in a letter.

"I am going to request, therefore, that the Committee on Health
and Welfare, under the chairmanship of Governor Nelson Rockefeller,
make an in-depth study into the problems and causes of soaring hos-
pital and medical assistance costs.

"Since this is a new committee, I believe this topic to be most ap-
propriate as its first assignment. "

The appeal to the National Governors' Conference for assistance
in trying to bring about controls over the Federally-aided program
was one of three actions taken recently by Governor Agnew.

He also received from Maryland hospital administrators assurances
that they will try to work with the State in seeing that all needy
patients can be cared for within the limits of available budgeted State
funds. And he wrote to Maryland Congressmen requesting their as-
sistance in trying to obtain a relaxation of present Federal standards
that require full repayment to hospitals of their average daily costs
for patient care without any limitation as to amount or the duration
of a patient's stay.

"It is impossible to budget for this sort of open-ended program,
which will soar out of sight unless we can establish some effective con-
trols over it, " Governor Agnew said.