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August 12, 1933

Group Payment for Medical Care: The Stanocola Employees' Medical and Hospital Association, Baton Rouge, Louisiana. Financial and Administrative Features.

JAMA. 1933;101(7):549-550. doi:10.1001/jama.1933.02740320059033

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Since 1924 a group of employees of the Standard Oil Company of Louisiana have operated the Stanocola Employees' Medical and Hospital Association, an organization maintained to furnish medical and hospital services to themselves and their dependents. The report of this project is a brief in favor of the insurance principle by the distribution of the burden of cost over a considerable number of persons. The beneficiaries of the plan pay $36 annually, an amount which, it is stated, represents about 2.5 per cent of family income. For the year 1931 the total costs to the association for medical services were $92,245.80. Of this amount, $41,175.00 was paid for the services of seven physicians. It is claimed that these physicians received more than they would have been able to collect in independent practice among the same group. A value of the amount of service rendered by the medical staff may be

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