NEWS CONFERENCE 651

A. This won't require legislation. I don't say that it may not require
some legislation, but from what I understand the cost control that is
had in mind by certain people who are advocating it within the health
structure — the private health structure — would not require a State
agency but would possibly require the utilization of the Hospital Cost
Analysis Service with some teeth in it.

Q. Now they offered this cost analysis service. Just last week they
suggested that they take a (interruption)....

A. It may very well be that later on we may want to, meaning the
Legislature and the administration, would want to formally phrase
into law some control over hospital costs; but so that we can get
started quickly with the cooperation of the hospitals themselves, I
would think that we would turn first to the voluntary self-regulative
area.

Q. Governor, the fear that was officially expressed last week that the
City Hospitals in Baltimore might have to close because of the budget
cuts and the like. Do you have any comment?

A. No, I don't think that this could be a serious contention. From
my contacts with the hospital people it is perfectly obvious that no
one has been hurt as yet. We did extend Medicaid through June 30th,
and the general hospital sector is completely aware of our problem in
financing it next year; and the purpose of this committee is to look
to a solution that will allow us to finance the critical side of the pro-
gram without hurting anyone. I think that's a gross exaggeration;
City Hospital isn't going to have to close.

Q. Governor, with the exception of Dr. Alien and Senator Hughes
the entire membership of this committee seems to be either Baltimore
or Baltimore area. Does that represent the belief that this is primarily
a Baltimore urban problem?

A. No, I didn't look at geography when I appointed this group.
There's no intention to only represent the Baltimore area but I think
that we have to be aware that the two teaching institutions that are
most vitally involved in the State portion of the health program are
Baltimore area institutions; even though the University of Maryland
is a Washington area college, the medical side of it is located in Balti-
more. There is no intention to create geographic division in this
group. I simply reached for the people I thought would be most
knowledgeable in this area.

Q. Do you think there is a possibility that the State might sometime
take over the publicly operated hospitals such as City Hospitals and
others in the counties?