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Rosenwald Foundation Answers Physicians Opposing Pay Clinics

April 12, 1929
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The importance of physicians cooperating with the public to reduce medical costs in hospitals and laboratories was stressed in a statement issued today by the Julius. Rosenwald Foundation. The statement followed the controversy which is stirring Chicago medical circles, occasioned by the threat of the Chicago Medical Society to expel any member serving on pay clinics conducted at low prices.

The Rosenwald Foundation was endowed to support medical clinics which will furnish treatment of the sick at nearly cost. It is these types of institutions which are under fire.

“The family in which serious illness occurs is not much interested in the details which make up its sickness bill, but is greatly concerned with the total,” the statement declares. Calling attention to the many public activities in which physicians have taken part, the Foundation holds that “in spite of the occasional controversy and intermittent attacks by certain professional groups, the real leaders among such doctors, such as are on the staffs of important hospitals can be counted upon for such support of sound and progressive measures for the public good. It is to physicians of this stamp that the Julius Rosenwald Fund must look for understanding, cooperation and progress.”

The action of the Medical Society in expelling Dr. Louis Schmidt, noted surgical authority on alleged unethical practice resulted in the resignation from the Society of Dr. Herman N. Bundesen, Coroner of Cook County and noted Public Health Authority as a protest. In his letter of resignation, Dr. Bundesen notified the Society that he wished to stand “shoulder to shoulder with Dr. Schmidt in his struggle to bring down the high costs of being sick.” Both physicians have served together in city, country and charitable organizations. The action of the society has served to focus the demands of the public for reduced medical costs. A number of wealthy men have offered to endow the type of institution advocated by Dr. Schmidt which would serve people of moderate incomes. Dr. Schmidt has, however, declined to announce his plans.

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