During the 1971 Special Session of the General Assembly, the operations of Blue Cross and Blue Shield of Virginia attracted national attention as matters concerning the high administrative expenditures of these organizations were revealed in Washington. The General Assembly reacted to these developments by approving the Senate Joint Resolution No. 20.

Pursuant to the terms of the study directive, the Governor appointed to serve on the Commission E. Leo Burton, Roanoke; Robert Carter, Richmond; and Frank A. Schwalenberg, Newport News. The President of the Senate appointed Senators Adelard L. Brault, Fairfax; Henry E. Howell*, Jr., Norfolk; and Edward E. Willey, Richmond. The Speaker of the House of Delegates selected Delegates Junie L. Bradshaw, Richmond; Donald A. McGlothlin, Sr., Grundy; and Richard .T. Ryder, Annandale. Senator Willey was elected to serve as Chairman of the Commission and Mr. Bradshaw as Vice-Chairman.

From the outset, the members were aware of the considerable complexity of the matters designated for their deliberation; especially the matter of cost accounting for hospitals and the administration of laws relative to the organizations under scrutiny. Therefore, it was deemed best and proper for subcommittees to be appointed. The Subcommittee to study hospitalization costs would include, in addition to certain members of the Commission, experts in the field of hospital administration and cost accounting. Mr. Schwalenberg was selected by the Chairman to chair this Hospitalization Costs Subcommittee of the Commission. Senator Howell also participated as a member of this Subcommittee. The following gentlemen devoted their time and best efforts as members of the Subcommittee, providing valuable advice, counsel and information to the Commission for which the sincerest expression of appreciation is extended: Edward L. Brown, Portsmouth; George J. Carroll, M.D., Suffolk; Harold P. Heafner, Jr., D.D.S., Portsmouth; Stuart D. Ogren, Richmond; R. Bruce Prouty, Blacksburg; Roscoe A. Robertson, Roanoke; Frank A. Schwalenberg, Newport News; 0. Delk Simpson, Smithfield; George R. Tyler, Richmond; and Frank C. Watters, Falls Church.

The Subcommittee to examine the administration of laws consisted of Senator Brault and Mr. Bradshaw, whose special service is recognized by the other members of the Commission.

Everette S. Francis, Commissioner of Insurance, rendered great assistance to the Commission, being available at all times to advise and relate factual data. To him also a measure of appreciation is accorded. The Division of Statutory Research and Drafting made staff and facilities available to assist the Commission in the discharge of its duties. Wildman S. Kincheloe, Jr. and Laurens Sartoris were assigned as legal counsel for the duration of the study.

The Commission held numerous meetings and hearings in an attempt to thrash out satisfactory solutions to the problems before it. Public hearings were held for the benefit of representatives of the Blue Cross and Blue Shield organizations in Virginia, stock and mutual insurance companies writing health and accident insurance, the Medicare and Medicaid Programs, health maintenance organizations, hospitals, pharmacists, members of the medical profession, nurses, nursing homes and other providers of health care services.

Based on the testimony heard and the information examined, the Commission reached such conclusions as are contained herein. It is not the feeling of the Commission that our findings are dispositive of all aspects of health care problems, but it is believed that our recommendations, if received and acted upon with favor will facilitate the resolution of the health care crisis.
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*Mr. Howell was elected Lieutenant Governor of the Commonwealth during the course of the study and consequently participated no longer in the deliberations of the Commission.