Harvard Community Health Plan signs a pioneering agreement to send the bulk of its patients to Brigham and Women's Hospital in Boston, even at the expense of Harvard's own hospital. Prestigious Brigham and Women's agrees to provide lower rates for Harvard patients in exchange for a guaranteed flow of patients.
Hermann Hospital in Houston is rocked by scandal, as a former trustee and two former hospital administrators are indicted for financial malfeasance at Hermann Hospital Estate, a $400 million trust fund that administers and finances the 908-bed hospital. The scope of the scandal has left many in the industry checking their bylaws governing charitable foundations.
Baxter Travenol Laboratories acquires American Hospital Supply Corp., creating a $3.8 billion healthcare supply behemoth, second only to Johnson & Johnson.
Gov. Michael S. Dukakis of Massachusetts intends to enroll 125,000 Medicare beneficiaries in managed-care plans by the end of 1987, up from 20,000 today.
Reginald Ayala, chief executive officer of 244-bed Southwest Detroit Hospital, looks to create in Detroit what is called the first "black multihospital system in the U.S."
CAN YOU BELIEVE IT?
Bedside computer terminals are being tested by two-hospital William Beaumont Hospital System, Royal Oak, Mich. The $9.5 million information system is the first computer application designed to reduce a hospital's work force, as clinical nurses can work more efficiently in tracking patient care and billing information.
Organ transplants. Fueled by new coverage by Blues plans and other major insurers, plus a developing market for organs and organ donor awareness campaigns, transplant activity skyrockets.
Humana. Basking in the publicity of the second-ever artificial heart transplant, the for-profit hospital chain launches a national branding campaign to make itself a household word. By the end of the year, it's clear Humana is far from household word status.
COVER STORY Oct. 25, 1985
The Veterans Administration is under fire for wasting billions of dollars through an inefficient hospital system. Critics say if it's allowed to build all the new hospitals it wants, another $25 billion will be poured down the drain.
The General Accounting Office has attacked the VA's wanton ways. As one example of the waste, the GAO points to a new $100 million VA hospital planned for Baltimore, where 14 hospitals are targeted for closure.
"The name of the game in healthcare isn't to keep stock prices going up. The name of the game is to meet community needs."
-Arnold S. Relman, M.D., editor of the New England Journal of Medicine