Leaders of the for-profit and not-for-profit hospital sectors meet in secret at American Hospital Association headquarters in Washington and call a truce in their ongoing public debate over which sector provides more community benefits.
New Jersey becomes the first state in the nation to pass legislation setting minimum 48-hour hospital stays for maternity patients.
A study by the Center on Addiction and Substance Abuse at Columbia University in New York says smoking, drinking and drug addiction will cost the federal government $77.6 billion in fiscal 1995.
The U.S. Justice Department issues its first-ever antitrust settlements involving alleged anti-competitive behavior by physician-hospital organizations in St. Joseph, Mo., and Danbury, Conn.
Roman Catholic Cardinal Joseph Bernardin of Chicago issues a warning about takeovers of not-for-profit hospitals, particularly Catholic hospitals, by for-profit hospital chains.
Robert O'Leary moves from chairman and CEO of American Medical International to the top slot at American Healthcare Systems, which by the end of the year merges with SunHealth and Premier hospital alliances.
"He's gone."-Ann Logue, a healthcare investment analyst, referring to the future of Timothy Aitken as chairman and CEO of Abbey Healthcare Group, which announces plans to merge with Homedco Group.
A Congressional Budget Office report predicts national healthcare spending will rise just 7% in 1995, following 1994's 6% increase, the lowest in recent years.
Alternative medicine. A number of hospitals across the country are getting involved in holistic medicine, stressing prevention over sickness cures.
Integrated healthcare networks. Their number jumped 69% between December 1994 and May 1995, according to a report from SMG Marketing Group.
COVER STORY May 22, 1995
Columbia/HCA Healthcare Corp. announced its first partnership with a Roman Catholic multihospital system, Cleveland-based Sisters of Charity of St. Augustine Health System.
It's the first defection of a major Catholic system to a for-profit hospital corporation. The Catholic system, which reported $438 million in 1994 assets, will retain 50% ownership.
Catholic healthcare leaders remain skeptical about the long-term advantages of dealing with investor-owned companies, saying it's difficult to keep values and mission while pursuing profits and cutting costs.
"No evidence exists that investor-owned hospitals provide less charity care than not-for-profits."
-Thomas Scully, president and CEO of the Federation of American Health Systems, in a letter to the Washington Post