EXTENSIONS of REMARKS 19921 EXTENSIONS of REMARKS HEALTH-CARE INDUSTRY TAKES Mr
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July 22, 1985 EXTENSIONS OF REMARKS 19921 EXTENSIONS OF REMARKS HEALTH-CARE INDUSTRY TAKES Mr. Speaker, as one who is very fond At the Pru, MacNaughton is credited for THE SPOTLIGHT of the entire Rodino family, it is a much of the early progress of PruCare, a great pleasure for me to insert this ar subsidiary that runs a network of HMO's and units in the far-flung health care HON. ROBERT G. TORRICEW ticle into the RECORD to share with my system of the company. Headquartered in OF NEW JERSEY colleagues. Roseland, PruCare's chief executive is Sam IN THE HOUSE OF REPRESENTATIVES HEALTH-CARE INDUSTRY TAKES THE SPOTLIGHT Havens who at 38 four years ago became its <By John Soloway) president. Monday, July 22, 1985 Once again, the business spotlight is on Sam Havens, asked recently by a Wash e Mr. TORRICELLI. Mr. Speaker, an the Garden State, in still another dimen ington correspondence for comment on the article appeared in last Sunday's sion. invasion of hospital chains into the under Newark Star-Ledger entitled "Health Its focus now is on the multibillion dollar, writing of health insurance, asserted. Care Industry Takes The Spotlight," multifaceted health-care industry which is "The hospital chains are moving the di about some of the exciting changes going through a performance involving rection they have to move, to protect their and developments that have occurred major metamorphosis and keen competi base and fill their beds," which largely ex tion. plains the most recent development in the in the health care industry in New And prominent Jerseyans, past and broadening battle in the health-care busi Jersey. present, are center stage. Also in the scene ness. Prominently featured in this article of action are such giant corporate entities as What's behind the rush to get aboard is a young New Jersey attorney named Prudential Insurance Co. of America and "The New Health Care" bandwagon? the Hospital Corp. of America and such or Peter W. Rodino III-the son of our It's the concern, "the rapidly growing con distinguished colleague Representative ganizations as the nationwide Blue Cross and Blue Shield Association and its New cern" among businesses-large and small en PETER w. RODINO, JR., the chairman of Jersey unit; the American Hospital Associa terprises alike-that health-care costs are the House Judiciary Committee and tion, and scampering about are a host of "going into outer space," to use the quote the dean of the New Jersey Congres Health Maintenance Organizations, attributed to one corporate employee bene sional delegation. <HMOs), no fewer than 11 of Jersey origin. fits executive. It is clear from reading this article "New Jersey is the hotbed of HMOs," says Explains New Jersey Business & Industry that the younger Rodino has a great Peter W. Rodino, 3d, visibly pleased after Association's director of regulatory affairs, many of the qualities for which we all wrapping up a deal that places Crossroads Jeff Stoller: "Health-care costs may well be know his father-intelligence, hard Health Plan of New Jersey under the wings the No. 1 concern of New Jersey employers of the broad-scoped Ameri-Care Health by year's end, ahead of concerns over tax work, integrity, and dedication. Those Corp. and himself in an enviable and chal costs." Three years ago, recalls Stoller, the of us who know and have worked with lenging role in the industry. concern over health-care costs as deter both Rodinos will not be surprised to In the latest HMO consolidation involving mined by NJBIA's annual economic survey, learn that Peter Rodino III is earning a Jersey health insurer, the 33-year-old ranked in 16th place. tremendous success and respect. Roseland attorney-son of New Jersey's Moreover, NJBIA's seminars last month in When he was a young boy, Peter congressional delegation dean, Peter W. Woodbridge and Piscataway directed by Rodino recognized the dangers of nu Rodino, Jr.-will continue as chairman of Stoller played to standing room only, indi clear war, and although he was only 10 the Crossroads subsidiary and take on a di cating the wide apprehension over rising years old, he decided to do something rector's portfolio on the board of the pub business costs attributable to health-care abut it. After he wrote a letter to licy-owned AmeriCare. benefits. A former Jerseyan, George Deubel is The merger action in which Peter Rodino Nikita Krushchev, imploring him to president and chief executive of AmeriCare, put an end to the arms race, young 3d played a newsworthy role last week, had headquartered in Sacramento, Calif. Of earlier seen HMO of New Jersey, a burgeon Peter started a program called "Little Deubel, Rodino says he is "a management ing health care coverer, win approval to People To Little People," a letter-writ pro among the best in the health care indus expand its scope across additional key coun ing campaign to the children of the try," a credential of vital importance in any ties in the northern part of the state in Soviet Union. changing business. search of new subscribers. Its parent firm is He earned a great deal of attention In another area of the revolution-yes U.S. Health Care Systems Inc., a big factor for this. He received an invitation to "revolution" is the term the Blue Cross/ in the national competition. the White House and met with Presi Blue Shield people employ to characterize Now, HMO/NJ and Crossroads will be dent Johnson, appeared on the popu the scenario-there is a very visible former squaring off in the contest for New Jersey Jersey corporate chieftain of Newark-based supremacy. lar television quiz show "I've Got A Prudential Insurance Co., Donald Mac Secret," and was commended by Naughton, who on this very day marks his The general battle among the health in UNICO as "Boy of the Year" and by 68th birthday anniversary and stays in the surers-HMOs, PPOs, DRGs, the hospital the Columbian Civic Club as "Out fray for the hand of the nation's leading chains, PruCare, et al., is what prompted standing Youth of the Year." This all producer of health care products, the Amer Blue Cross and Blue Shield Association into ican Hospital Supply Corp., in a deal figured advertising action with the "revolution" took place before he reached his 12th characterization in what's what in the orga birthday. at $7 .6 billion. Don MacNaughton is board chairman of nization's ad series, "The New Health Care." This early promise was realized in Hospital Corp. of America, a position he at Fifty-five years ago, Blue Cross/Blue Shield his later professional and academic tained upon leaving Pru in 1978 when, in his wrote the book on the health insurance con achievements. After graduating from own words, he decided to exit the "pressure cept and the New Jersey operation dates Georgetown University and Seton Hall cooker" climate of the world's biggest insur back nearly to the period of authorship. Law School, Peter Rodino established ance company. In behalf of its membership-drawn from an active law practice in New Jersey. Earlier, MacNaughton had broadened the 6,000 hospitals across the country-Ameri In addition, he has been involved in scope of the Pru in a variety of ways, includ can Hospital Association tells their story in numerous civic and political activities. ing leadership in the health-care field and full-page ads that "hospitals are holding Among the highlights of these are his development of the HMO movement. He re costs down; that rate of increase in health mains on the Prudential board, meanwhile care costs is at its lowest point in over 20 appointment by President Carter to filling an active role in Hospital Corp. of years." serve on the National Highway Safety America's mounted challenge to Blue Cross/ The association ads disclose: Hospital ad Commission, and his role as vice chair Blue Shield and other health insurers in the missions are down . hospital employment man of the 1980 Carter-Mondale cam developing drama that is "The New Health is down ... Patient length-of-stay is down, paign. Care" game. adding: • This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. 19922 EXTENSIONS OF REMARKS July 22, 1985 "Cost containment is working for many IF ONLY LIVE AID CAN GET When an American rock fan shells out $35 reasons. The new prospective pricing system THROUGH for Live Aid, what assurances does that under Medicare provides new incentives to person have that the Ethiopian dictatorship control costs. Employers active in health will actually use donated supplies to feed care coalition and preferred provider organi HON. NEWT GINGRICH hungry people? None. zations <PPOs> are getting cost-saving re OF GEORGIA There are many aspects of this problem. sults for their companies." IN THE HOUSE OF REPRESENTATIVES Kurt Jansson, deputy secretary general of New Jersey's Gov. Thomas Kean went a Monday, July 22, 1985 the United Nations, recently called for a stage on the subject a month ago keynoting pause in the donation of emergency supplies the Middle Atlantic Health Congress con • Mr. GINGRICH. Mr. Speaker, in from the West. He noted that the Ethiopian vention in Atlantic City. the following article, our colleague regime has been allowing hundreds of thou The Garden State's popular chief execu TOBY ROTH brings to all of our atten sands of tens of grain and other supplies to tive called for a regional approach rather tion the very real crisis of an Ethiopi pile up at the docks while diverting trucks than an intra-sta.te route for the realization an Government willing to starve its to smashing dissidents or moving Ethiopians of aims in the structuring of preventive own people to death to retain power.