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Daily Press from Newport News, Virginia • Page 16

Publication:
Daily Pressi
Location:
Newport News, Virginia
Issue Date:
Page:
16
Extracted Article Text (OCR)

4 B6 Daily PressThe Times-Kara, iiaiurday, July 15, 1989 Chrysler won't pay some doctors' bills jjata are potentially opening them' In fact, he thought next week's report on consumer prices for June would show just a 0.1 percent rise, and that monthly consumer inflation numbers afterward will remain below the 0.6 percent pace of earlier this year. But he also cautioned that such a good outlook depends to a great extent on energy prices. For June, energy prices dropped 3.1 percent in the PPI's finished goods category. Intermediate energy prices weakened just 0.1 percent, but crude energy costs dropped 1.8 percent to imply that more declines lie ahead at the finished level. But capital goods prices rose 0.7 percent last month, the PPI showed, mainly because of an 8 percent jump in the cost of ships that had been weak for the two previous months.

Costs for other transport equipment also picked up last month, Labor and Commerce said, though not nearly as much as for ships, which had been weak for the two previous months. Costs for other transport equipment also picked up last month, Labor said, though not nearly as much as for ships. and Human Relations, said Chrysler's actions are precedent-setting because they challenge the reasonableness of care rather than just the cost. "There's an allegation of a tremendous amount of abuse and fraud," he said. Lewsley declined to identify the doctors whose treatment is being challenged.

Faulhaber said he believed about nine doctors were involved. The Associated Press contacted several doctors in the Kenosha area to see whether they had received payment from Chrysler. Most declined to comment or said they did not know the status of Chrysler claims because they leave their financial matters to their staff. But Dr. Jose Kanshepolsky, a neurosurgeon, said he has not received any payments for treatment he provided Chrysler workers over the last 18 months.

Kanshepolsky said he has talked with other doctors and estimated Chrysler has refused to pay the bills of at least 80 bad practice and we feel a moral obligation to confront some of these bad practices Lewsley said. "The dispute is between Chrysler and the doctors, and we're trying to keep the employees out of this." Employees have been told that Chrysler will pay the bills if it loses its challenge. Chrysler is also giving employees a list of suggested alternative doctors if they wish to leave the physician treating them, Lewsley said. Rudy Kuzel, a former leader of United Auto Workers Local 72, said there have been rumors of poor medical care in Kenosha for a decade and the union is glad that Chrysler is finally investigating the allegations. He said he hoped the legal system would expose any doctors who are providing poor treatment and vindicate any physicians who have been unjustly tainted by rumors in the past.

Chris M. Faulhaber administrator of the workers' compensation division of the state Department of Industry, Labor By JOHN SOLOMON The Associated Press KENOSHA, Wis. In what government officials say is an unprecedented move, Chrysler Corp. is challenging the quality of medical care provided to dozens of injured workers at its now-closed assembly plant here and is refusing to pay for it. The care provided to workers by certain physicians in the Kenosha-Racine area was "inappropriate, unreasonable and ex-cessive," said David A.

Lewsley, manager of workers' compensation for the automaker. Chrysler has assured workers they won't be liable for unpaid bills, and says its battle is with the doctors, not with the workers treated. A former United Auto Workers leader said the union approved of Chrysler's decision, but a lawyer who represents some Chrysler workers was critical of the move. "I think that's a tactic of the auto industry and it's a blatant abuse of their employer-employee relations," said Kenosha attorney Paul Gagliardi. "They selves up to substantial litigation." Gagliardi said Chrysler's refusal to pay workers' compensation claims will only compound the pain of last year's plant closing, in which about 5,000 workers were laid off.

Lewsley said Chrysler is refusing to pay 200 bills and is challenging an additional 300 submitted since Dec. 1, 1988. He had no estimate of how many patients were involved, but one doctor estimated it at 80. The company began sending out letters to employees this week, he said. Lewsley said Chrysler is not questioning the employees' injuries, only the care provided by certain physicians.

All the cases involve on-the-job injuries or illnesses. Lewsley said the automaker conducted an outside audit before determining that the medical bills were improper. The automaker is "self-insured," meaning it pays medical bills directly rather than buying insurance. "What we have is a pattern of Continued from B5 veal what economists like to call the "core inflation" rate. Industrial production fell 0.2 percent, after a 0.1 percent drop in May.

Those back-to-back declines brought the once-worrisome capacity use rate for factories, mines and utilities down to 83.5 percent, the lowest so far this year. Retail sales dropped 0.4 percent after the barest increase in May, as auto sales suffered their sharpest drop since the days when the stock market caved in during 1987. The jump in core inflation hit financial markets and overshadowed the broader PPI drop, because investors speculated this would hamper Fed efforts to push interest rates down. As a result, the dollar gained in value despite the clear evidence that economic growth was cut in June. Thomas Carpenter, chief economist for ASB Capital Management was more optimistic.

Starting about now, he predicted, "we've got two years of great inflation numbers ahead." DO IT YOURSELF SAVE THOUSANDS As a minor point, CBN asked that it be allowed to remove a religious-themed stone mosaic, called "King of Kings and Lord of Lords," from the station's lobby. It was removed last week. Bottom wrote in an amendment to the FCC application that he "is a consultant to the Daily Press-Times Herald newspapers in Newport News a relationship which will be concluded prior to consummation of the subject assignment." Since the sale of The Daily Press Inc. to Tribune Co. in 1986, Bottom has been a vice chairman of the local newspaper company, which publishes the Daily Press and The Times-Herald newspapers.

Daily Press Inc. Marketing Director Frank Simmons said he was not aware of any changes in Bottom's position at the newspapers. It is uncertain whether the FCC would require Bottom to leave his newspaper post. FCC rules disallow a person from owning two media properties in the same market. Bottom was unavailable for comment late Friday.

The other new station owners and their ownership percentages break down as follows: Robert L. Freeman of Ware Neck, a former managing direc- tor with Coopers Lybrand accounting firm, 10 percent; W. Howard Jernigan of Hampton, general manager of radio station WGH-FM, at one time owned by The Daily Press 5.75 percent; Ernest T. Harris of Williamsburg, former vice president and general sales manager with television station WVEC, 5.75 percent; Robert L. Freeman Jr.

of Newport News, an attorney, 5 percent; Dorothy Duffy of Hampton, Bottom's sister and also a former co-owner of The Daily Press 1.5 percent. WYAH Continued from B5 CBN's agreement to that covenant meant that it received an added $1.8 million on top of the $8.2 million it was to receive. CBN also signed a contract With Centennial to continue running "The 700 Club" on WYAH. CBN will pay Centennial $500,000 for the first year and $350,000 a year for the next six seasons to show Robertson's program. Centennial agreed to schedule "The 700 Club" on weekdays at 10 a.m.

and repeat it each weeknight at 11:30 p.m. FREE INSTRUCTION BOOK ON HOW TO INSTALL VINYL SIDING VINYL SIDING-COLORS SHQOO SQ. OZJ WHITE VINYL SIDING $3000 I 50 YR. WARRANTY CALL 244-6331 Hire? UUU Oim.L) be "smaller and something a little surer than this one," Noble said. But Noble said Paramount could find itself the object of an unsolicited takeover bid.

Davis, in a meeting with analysts after Paramount announced its original $10.7 billion bid for Time, said his company always was willing to consider a 'fair price that recognized the true value of the company, Noble said. Wall Street traders also see Paramount as a possible target. The company's stock has fluctuated during the course of the Time battle as rumors flew that the company was about to receive a bid. But, Noble said, if Paramount does receive an offer, the company is unlikely to be any more of a pushover than Time was. "Martin Davis is quite a fighter and I don't think that's what's going to happen," Noble said.

Davis Continued from B5 other property that would fit in with his expansion goals. When Paramount, then called Gulf Western announced in April it was selling its consumer finance arm, The Associates, the company said it would use the estimated $2.5 billion in proceeds to expand its remaining businesses entertainment and publishing "both internally through product development and distribution and externally through acquisitions and investments." Davis declined to be interviewed Friday and a Paramount spokesman said the company would not comment on its plans or what its next move might be. J. Kendrick Noble, an analyst with PaineWebber predicted Paramount would be aggressively moving again soon. Davis' next target likely would Convenience Store Service At Popular Prices -We Have Something For Everyone- 905 DENBIGH YORK COUNTY 1 1210RT.

17TABB (600 yds. from Newport News City (1 block from Newport News Line) City Line) BOTH STORES OPEN DAILY 6-11 CIGARETTES MANY BRANDS S1.00 TO S3.50 OFF 13 Varieties of FRESH MADE DELI SANDWICHES 4- offer. A vote was required on the original agreement because it involved the issuing of more Time shares, but an acquisition did not require a vote, the lawyers argued. Time's board has rejected Paramount's bid as financially inadequate and too conditional to be viable. Time also has accused Paramount of undertaking the bid solely to destroy the competitive advantage Time Warner would have over Paramount.

Allen's decision and the final outcome of the case have been anxiously awaited by other companies that might be contemplating friendly mergers of their own. Many of the nation's largest companies are incorporated in Delaware like Time, Paramount and Warner and are subject to its laws. The judge in remarks that also addressed broader concerns raised by the case rejected Paramount's claim that defensive moves by Time and Warner after their merger agreement implied that the companies knew they had put themselves up for sale. "Time management and its board had, at all times, one eye on the takeover market, considered that market in all they did, and took steps to afford themselves the conventional defenses," he said. "I do not regard that fact as darkly as do the plaintiffs." Allen also disagreed with the claim by Paramount and the shareholders that Time had put itself up for sale in their initial merger agreement on the grounds the current Warner shareholders would end up holding more than 60 percent of the stock in Time Warner.

Control of Time, they argued, would effectively be transferred to the Time shareholders. "I cannot conclude that the initial merger agreement contemplates a change in control of Time," Allen wrote. Blocked Continued from B5 in cash and securities for each of the remaining shares, Time stock fell $4.75 a share to $145.25 a share on the New York Stock Exchange after having dipped as low as $138 a share. Warner stock rose $2 a share to $64.25 and Paramount slipped 12'2 cents to $57.50 a share. Allen heard arguments from both sides during a 5y2 hour hearing on Tuesday.

Attorneys for Paramount and the shareholders who included Texas investor Robert M. Bass claimed Time's directors violated their duty by refusing to let shareholders vote on Para-mount's bid and the tender offer for Warner. The attorneys said the Time and Warner boards knew they were opening the companies up to outside bids by deciding to merge and Time must therefore seriously consider Paramount's offer. Allen agreed with the Time and Warner contention that Time's directors did not violate their duty to shareholders. "Whether the Warner transaction in its current form should be pursued or not in the corporation's interest is for them (the directors) to decide, not the shareholders," Allen said.

"While some shareholders, even a majority of shareholders, may disagree with the wisdom of their choice, that fact provides no reason for this court to force them, under the guise of a fiduciary obligation, to take another, more popular course of action," he said. Time and Warner announced their original stock-swap merger agreement March 4. The companies planned to submit the plan to shareholders, but amended the agreement in June after Paramount made its original $175 a share bid to provide for Time's $70 a share tender 99' from Foreign currency Dividends TunnMuuuMuumi.u'iMin.v FRIDAY DIVIDENDS DECLARED ALL MEAT Licensed to sell NEW YORK (API ForHwi EicKongt, Mn York price. Rates far trades of 11 million minimum. Fw cvrraac la foliar 1 1 7-J1 -7 1-14 ALL yiWyNLAlOTTHiY Frl.

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1 let r4 17 1 1 1 1 iwii rmo Kdkwt. 04 at aev 04 taoapye. I 1 74 aeyve 3kpn 4 Pay. 8 08 4s I 1 IT (45 15 55 OS 05 El I4IHP rakek- Owi i ,1 4 25-4S I 44 175 1 -u 4 0 75-41 es H7SIH I or 0 41-5 5r4 -is 5l5 I 1 'C44 re4e. 144 epke OliQArKJ Buzz Aldrin No Admission Fee-The Public Is Invited SEATING LIMITED TO 200 PERSONS The Sigma Series of public lectures is sponsored as a community service by the following organizations: NASA Langley Research Center The City of Hampton and the Dnid) JJrcss The Times-Herald Nonferrous metals meld some of the most stringent features of both bills aimed at reforming abuses into one legislative package acceptable to both houses.

Lax laws and accounting practices that let some thrifts lend federally insured deposits for risky and often fraudulent ventures while risking no money of their own is widely blamed as the chief factor behind the crisis, the largest financial debacle since the Depression. Covering the estimated 100 billion in losses is eipected to cost each of the nation's taxpayers between $500 and $1,500 over the next 30 earv TOOTC (APS oowlrrok 4ke prsrw By MATT YANCEY The Associated Pros WASHINGTON Congressional negotiators, breaking a procedural deadlock, tentatively agreed Friday to toughen proposed regulations on savings and loans as part of a $157 billion taxpayer bailout cf the industry. Although nothing was adopted. Senate and House conferees moved toward embracing a combination of the toughest specific capital requirements in separate Senate and House tills to make S4Ls back up loans with more of their own money. Ty conferees arj trying to 44 ot Ay 4 15 4 My 7 51 'yy fiii i rn ma i in Wywj Ft P44P4.

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