University of Virginia Library

BLUE CROSS CONTRACT

President Darden reported that he had executed a contract for the calendar year 1952 with
the Virginia Hospital Service Association (Blue Cross). He said that he was not satisfied with the
contract but had signed it to protect the University's interests. The President then explained the
"recapture provision" of the Blue Cross contract, under which Blue Cross recaptures the amount paid
the hospital by a patient occupying a private room instead of semi-private room as specified for
Blue Cross patients. The new contract partly reduces this recapture by returning to the institution
one-fourth of the private room surcharge. The President stated that he did not believe that
this recapture is fair to the institution, although the new contract is an improvement over the old
one. He stated that Dr. Ackart had headed a sub-committee of the Blue Cross Board which had drafted
the new contract and while he felt Dr. Ackart had worked hard to improve the contract, he did not
feel that Blue Cross should recapture any of the differential between semi-private room costs and
the amount charged the private patient.

President Darden requested that the Board investigate the contract and if it agrees with
the President, that he be authorized to continue negotiation with Blue Cross and attempt to secure
a fairer treatment for the University, failing this, that he be authorized to withdraw the University
from participation.

Mr. Gay and Mr. Anderson were requested to look into the matter and report to the Board.