REORGANIZATION PLAN NO. 3 OF 1966 (Health Functions-Department of Health, Education, and Welfare) FRIDAY, JUNE 17, 1966 U.S. SENATE, SUBCOMMITTEE ON EXECUTIVE REORGANIZATION, Washington, D.C. The subcommittee met, pursuant to notice, at 10:05 a.m., in room 3302, New Senate Office Building, Senator Abraham Ribicoff (chairman) presiding. Present: Senators Ribicoff and Harris. Also present: Jerome Sonosky, staff director and general counsel; Robert Wager, assistant counsel, Subcommittee on Executive Reorganization; James R. Calloway, chief clerk and staff director, and Eli E. Nobleman, professional staff member, Committee on Government Operations. Senator RIBICOFF. The meeting will be in order. This will be a hearing on Reorganization Plan No. 3, providing for reorganization of health functions of the Department of Health, Education, and Welfare. I wonder, Dr. Lee, Mr. Simpson, Dr. Stewart, and Harold Seidman, if you would all come to the table, that we might be informed-all your formal statements will be in the record as if read, and if you will devote your time basically in the discussion before the committee of what basically you are trying to do, what you are trying to accomplish, what you consider are the needs and why this reorganization plan should be approved; I think that you can interrupt one another and as I said, your prepared statements will go in the record as read. Before we proceed, I will insert in the record at this point a copy of the President's message transmitting Reorganization Plan No. 3, and a staff memorandum prepared by Mr. Eli E. Nobleman of the full committee staff. 1 REORGANIZATION PLAN NO. 3 OF 1966 MESSAGE FROM THE PRESIDENT OF THE UNITED STATES TRANSMITTING REORGANIZATION PLAN NO. 3, 1966, PREPARED IN ACCORDANCE WITH THE REORGANIZATION ACT OF 1949, AS AMENDED, AND PROVIDING FOR REORGANIZATION OF HEALTH FUNCTIONS OF THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE APRIL 25, 1966.-Referred to the Committee on Government Operations and ordered to be printed with accompanying papers. 3 LETTER OF TRANSMITTAL To the Congress of the United States: I transmit herewith Reorganization Plan No. 3 of 1966, prepared in accordance with the Reorganization Act of 1949, as amended, and providing for reorganization of health functions of the Department of Health, Education, and Welfare. I Today we face new challenges and unparalleled opportunities in the field of health. Building on the progress of the past several years, we have truly begun to match the achievements of our medicine to the needs of our people. The task ahead is immense. As a nation, we will unceasingly pursue our research and learning, our training and building, our testing and treatment. But now our concern must also turn to the organization of our Federal health programs. As citizens we are entitled to the very best health services our resources can provide. As taxpayers, we demand the most efficient and economic health organizations that can be devised. I ask the Congress to approve a reorganization plan to bring new strength to the administration of Federal health programs. I propose a series of changes in the organization of the Public Health Service that will bring to all Americans a structure modern in design, more efficient in operation and better prepared to meet the great and growing needs of the future. Through such improvements we can achieve the full promise of the landmark health legislation enacted by the 89th Congress. I do not propose these changes lightly. They follow a period of careful deliberation. For many months the Secretary of Health, Education, and Welfare and the Surgeon General have consulted leading experts in the Nation-physicians, administrators, scientists, and public health specialists. They have confirmed my belief that modernization and reorganization of the Public Health Service are urgently required and long overdue. II The Public Health Service is an operating agency of the Department of Health, Education, and Welfare. It is the principal arm of the Federal Government in the field of health. Its programs are among those most vital to our well-being. Since 1953 more than 50 new programs have been placed in the Public Health Service. Its budget over the past 12 years has increased tenfold-from $250 million to $2.4 billion. Today the organization of the Public Health Service is clearly obsolete. The requirement that new and expanding programs be |