Argus-Leader from Sioux Falls, South Dakota • Page 1

Friday, May 6, 1977 Sioux Falls Jimmy Carter visits England -LEADER On page 6B A Speidel newspaper 32 pages Siou Falls S.D. A newspaper for the home Price 20 cents Weather, page AA A-RGU Plan for ceiling on hospital costs draws local criticism By KIM ODE Argus-Leader Staff Writer A decrease in the quality as well as quantity of medical care will be the unavoidable result of President Carter's recent proposal for a 9 per cent ceiling on hospital costs, according to two city hospital administrators. Henry Morris, administrator at McKennan Hospital, said the roposai is "another example of egislation from Washington. D.C., without very much consideration given to a rural state like South Dakota." He said the state's two largest hospitals are both in Sioux Falls meaning they must serve a greater number of patients statewide than a more metropolitan area which could divide patient numbers among many hospitals. "There no provision in the proposal for these extra costs," he said.

"It doesn't account for the individual needs of individual hospitals." Sioux Valley Hospital Administrator Lyle Schroeder voiced similar sentiments. "I don't have any problem at all in accepting the challenge of finding better ways to provide health care. It's something we work Vs. but have brought more expensive equipment to the hospitals, too. The fear of malpractice suits also has made more extensive testing a common practice.

"Sec. (of Health, Education and Welfare) Califano says hospitals are obese," said Schroeder. "Now I don't mind cutting off fat in a system, but we're not fat. And when you start cutting meat, well, that's when the patients get hurt." Schroeder said hospital salaries are a vulnerable target for cost-cutting measures because they are a visible sum. Referring to a series of graphs, he showed that the cost of a room is $148.33 per day and that $78 of that goes to salaries.

"Now those that think that's too much say it's a question of having too many employes or of paying them too much. But we're below that in both respects." Breaking down salaries into man-hours, Schroeder said a top-to-bottom house' average wage at Sioux Valley 1s $4.29 per hour. "Considering the type of skill you need in a hospital, that's not an excessive he stressed. Further complicating the salary question is a movement in Congress to raise the minimum wage laws. "They're talking about an increase from $2.30 to $3.

That would be $1,500,000 at Sioux Valley and that's your 9 per cent right there." Staffwise, Schroeder said the hospital average of 18.6 employe hours per patient is below the national average of 20 hours, "so it's not that we have too many employes, either," said Schroeder. Morris also cited McKe-nnan's 2.7 employes per occupied bed as below the national average of three. Henry Morris antibiotics to take care of most of that. Now 76 out of every 100 Americans die of either heart, cancer, cardiovascular ailments or in accidents." He blamed lack of exercise, poor diet, smoking, alcohol consumption and high living as the killers of today. I'm always interested in finding better ways so we don't have to take the kinds of dollars we do from the American public," he said, "but we can't do it alone." Morris agreed.

"People want Cadillac medicine at Volkswagen prices," he said, "but they can't have it both ways. It's hard to hold the line at 9 per cent when all our other costs are rising above that rate." Both men are waiting for the government hearings which begin Wednesday. "As the proposal stands now, it probably won't come through with all its provisions," predicted Morris, "but there is a movement for some changes to be made. Hospitals will have to take a hard look at the future from now on." April jobless rate hits lowest level in 29 months This brings up the ultimate question of what will be eliminated if the proposal is passed by Congress. Morris said he foresees it boiling down to some "hard-nosed decisions.

It's a moral question of 'Can we afford to ut the Do we cut down on nursing hours per patient?" he asked. "Or esoteric programs like tomography?" Schroeder predicted the cuts first would hit regional programs. "If we're backed up against the wall with not having enough revenue to operate, we'll have to forget about serving the whole state as we do now and concentrate instead on the immediate Sioux Falls area." He said jeopardized programs would include the renal dialysis program which brings people in statewide, the perinatal programs for better child and maternal care, and the educational programs for doctors, nurses, technicians and the general public. "Elements that result in more comfort for the patients may be cut, too," Schroeder warned. "We may not be able to afford to satisfy their social needs or have a chaplaincy program for their religious needs." Morris said he felt the proposal is a prelude to a national health insurance plan because it helps satisfy one of two elements needed to enact such a system.

"One, the insurance would increase the public's purchasing power so manpower will have to be increased to deliver the entitled services," he explained. "Second, to do this will cost more money, so the government needs to get a firmer hand on hospital costs so they don't go bankrupt at the federal level." Schroeder echoed the same thoughts, charging the federal other eastern county you want to name." Although many people believe that because the state had a fairly cool, wet early spring the grasshopper hatch won't be heavy, Kantack said the weather so far won't be a factor. "We'd have to be blessed with some real rains in the next few weeks to stop a good hatch, to be honest," he said. "Normally, the state doesn't see enough spring rain to stop a hatch." "The potential for a heavy grasshopper problem this year is greater than for a number of years," he added. He said grasshoppers produce only one hatch a year, and favorable weather, warm and dry, during the period from about May 15 through the middle of June gives the insects just what Grasshopper infestation potential high with every day.

But I cannot accept a proposal that Mmits our costs to 9 per cent While other factors we depend on increase at greater rates." To illustrate the situation, Schroeder cited energy costs that have soared 35 per cent in the past year and drug prices that have risen 13 per cent. Both administrators said they thought they could get by for one year at 9 per cent, but it will be the long-term effects that will hurt them. "There's a kind of rachetlng effect in the program where that 9 per cent will become a smaller margin as costs continue to increase, said Morris. "Each year will be worse." Morris pointed out that 30 per cent of all hospitals in the United States ran a deficit last year. "Now they're facing the problem of how to become solvent again, and I don't think that's possible under this program." What's the reason for the in- -crrease in hospital expenses which, according to the Consumer Price Index, have risen IS per cent in the past year? Scientific advancements have improved the quality of medicine are concerned over inflation, they are "more confident about reducing unemployment.

Treasury Secretary W. Michael Blumenthal predicted earlier this week that the administration's foal of reducing joblessness elow 7 per cent by year end "is going to be achieved ahead of schedule." -Joblessness had fallen from its 1975 recession high of 9 per cent to a low in 1976 of 7.3 per cent last May, but climbed to a year's high of 8 per cent during the "pause" between the recovery and the recession. Although unemployment has improved sharply in just the last few months, the 7 per cent rate is still high by historical standards. Nearly every worker group shared in the April improvement, but most of the gain occurred among adult men whose jobless rate fell from 5.4 to 5 per cent, its lowest point in 2 Vi years. The Labor Department gave this breakdown of unemployment last month: Adult women, 7 per cent, down from 7.2 per cent.

Teen-agers, 17.8 per cent, down from 18.8 per cent, marking the first significant improvement in more than a year. Whites, 6.3 per cent, down from 6.6 per cent in March. Blacks and other minorities, 12.3 per cent, down from 12.7 per cent. White collar workers, 4.4 per cent, down from 4.7 per cent. Blue collar workers, 4.9 per cent, down from 6 per cent.

The jobless rate for persons' heading families, regarded as the traditional breadwinner, fell from 4.6 to 4.4 per cent last month. The Labor Department said that 57 per cent of the persons who were not in prison, in hospitals or going to school, had jobs last month. under investigation Authorities say they believe the body was struck by a car and dragged for five and one-half miles by the car. No arrests have been made. The South Dakota Division of Safety said the death raises the number of 1977 state traffic fatalities to 47, compared with 61 this date one year ago.

WASHINGTON (AP) The nation's unemployment rate dropped from 7.3 to 7 per cent in April, its lowest level in 29 months, as a half-million Americans found jobs, the government reported today. Labor Department analysts said the improvement "very definitely shows a strong expansion" in the economy following the severe winter weather that disrupted production and pushed unemployment up earlier this year. At 7 per cent, the nation's jobless rate was at its lowest level since November 1974 when it stood at 6.7 per cent during the last recession. The rate has dropped by one full percentage point in the last five months and is down two points from its May 1975 recession peak of 9 per cent. April's decline in unemployment followed a two-tenths of a per cent drop in March from 7.5 to 7-3 per cent.

It was also the second month in a row that employment improved sharply. Total employment increased by 548,000 in April, "reaching a milestone of 90 million persons," "the government said. Employment had also increased by about a half a million March and has risen nearly 2.3 Imillion since last October. The number of persons dropped by 330,000 in April to 6.7 million, with most of -the decline among persons who had lost their last job, as opposed to those entering the labor market last month. i The nation's improving job picture contrasts with reports of accelerating inflation.

The Labor Department reported Thursday wholesale prices last month rose another 1.1 per an annual rate of more than 13 per cent. While administration officials Sales tax correction Lyle Schroeder government; with "overpromise" as it tries to save about $825 million in Medicare and Medicaid expenses. "Now that the bills are starting to come in, they're trying to cut costs. It's a vicious cycle." Is there an alternative solution? Both administrators doubted there is one financially because inflation shows no sign of lessening. "I've been in the field for 20 years now," said Morris, "and committees have been working on these same problems for years with no solution.

If the public wants to settle for a lesser level of health care, it's their prerogative, but as health care becomes more complex, and accordingly more expensive, it's also getting better. Both Schroeder and Morris stressed a change in the American lifestyle would do more to ease hospital expenses than any government program. "The big killers used to be flus, infections," said Schroeder, "But we developed serums and they need to get a good start. Wet and damp, cool weather is conducive to diseases that kill the newly-hatched insects. "Last summer we had numerous areas of eastern South Dakota where the insects caused crop problems, and those insects laid eggs that will give us our annual crop this year," Kantack said.

He said farmers can ease the problem by using insecticide spray during the late spring in areas where grashoppers tend to hatch, like roadside weed patches or field headlands. "We estimate that for every acre of hatching bed sprayed, the farmer can save 15 acres of crop land," he said. "The key 1s early control. By spraying early, the farmer uses fewer chemicals, kills more in travel during the time the Rush-more Bridge is closed for repairs. Repairs on the 12th Street and Kiwanis Avenue intersection will not require reconstruction of the entire street and the intersection will remain open throughout the construction time.

The board also indicated that contracts will probably be let on signalization for the 41st Street and Minnesota Avenue intersection and for the 41st Street and Western Avenue intersection during late 1977. Those projects are both in final review but are being slowed by right of way. problems. The status of other city street -projects was given as follows: The contract for improvements of 41st Street over Interstate 29 and the roadway to Marion Road will probably be let in January of 1978 and construction may begin by the spring of 1978. It is doubtful that interstate funds will be available for that project and the improvements, which include lighting, sewer and gutter, will probably be fi ly north of the old National Bank of South Dakota building.

The old bank building at 9th Street and Phillips Avenue is owned by Reardon. Gene Erps, $29,549 for ground at 8th Street and Phillips Avenue. Erps proposes to invest more than $400,000 in a new restaurant, small office building and offstreet parking. Erps operates a restaurant in a building at the site which' is to be demolished under the Community Development program. Commissioner Dave Witte said he was voting with reluctance in Status reviewed for city street projects ByTERRY WOSTER Associeted Press Writer PIERRE; S.D.

(AP) Nearly every eastern South, Dakota county is a potential grasshopper hot spot, a South Dakota State' University entomologist says. "Predicting grasshopper infestation is like predicting the weather," Ben Kantack said today. "The problem may or may not come, but right now the potential is there." Brown, Day and Marshall Counties have heavy grasshopper possibilities, and there are hot spots in almost any Outlook Water consumption The Sioux Falls Water Plant pumped 11.6 million gallons during the 24 hours beginning at midnight Wednesday and ending at midnight Thursday. Do your part conserve water! LifeScan WORKING WOMEN are increasingly important to nation's prosperity. Page 8A.

Sports RACE CARS ready to roll. Page ID. U.S.World The ground still shakes in northern Italy a year after QUAKES killed 950 people and injured 2,000. Page 3A. The government is announcing RECALLS involving 2.7 million cars and trucks, 3.1 million Mr.

Coffee machines and more than 24,000 cases of chili. Page 6D. Editorials 4A Movies 4B LifeScan 8 A Sports Sec. Sioux Emplrf IB Financial 4D Television 5B Want Ads Sec. Argus-Leader telephone Area code 605-336-1130 City The City Commission Thurs day afternoon awarded contracts for sale of $293,567 in downtown land.

The awards and location of sites based upon bids received earlier are: Midland National Life Insurance $185,232 for a site for a home office planned on the north, side of Uth Street between 1st and 2nd avenues. Plans include an building and offstreet parking for more than 150 cars. The total new investment is estimated at $3.5 trillion. Midland expects to em- sects in a smaller area and, most importantly, can kill them before they lay eggs for the next year." "When spraying is done during the next six weeks or so, the farmer really isn't killing only the hatch right now but also is protecting against next year's problem. William Schroeder, state Agriculture Department, said the late part of April and early May "as we anticipated, showed a letup in moisture." He said spraying should be done before June 15, to keep the grasshoppers in the area in which they've hatched.

"There's a chain reaction," he said. "The grasshoppers are cannibalistic. If one dies of the spray, others eat it, and they die, too." nanced using urban funds. No funds have yet been approved for an Interstate 29-Inter-state 229 interchange modification which would allow traffic to move north onto Interstate 29 from Interstate 229. The redesignation of US Highway 16 to SD Highway 42 and of US Highway 77 to SD Highway 115 will have no effect on function or maintenance requirements for those highways.

Both highways will retain their present status as "primary highways" with regard to funding and maintenance work. The change in designation was made only to eliminate confusion and avoid misleading traffic using those highways. Under the new designation, through traffic using Highway 77 will be routed on Interstate 29 to avoid unnecessary diversions. The board passed a resolution to eliminate all parking on W. 12th Street from Kiwanis Avenue to Western Avenue by June 1.

1978. favor of allowing Goodwill to make the land purchase. He contended the firm is a nonprofit corporation which Will not generate property tax revenue. Community Development Director Dave Alberts said the land had been on the market for two years. Alberts revealed that the city plans to create a new parking area on property owned by Horner Lumber 315 S.

2nd Ave. The parking area is to be developed westward in the block to. 1st Avenue. A delegation from the Sioux Falls Chamber of Commerce took advantage of the first meeting of the South Dakota Board of Transportation to be held in Sioux Falls since April 1974 to present the board with a list of road projects considered essential to safe driving in the city. The board approved two of the projects for June bid letting and appeared sympathetic to city requests on several others.

Bids will be opened for contracts on improvement of the 12th Street and Kiwanis Avenue intersection on June 1 and for reconstruction of the Rushmore Bridge on 10th Street on June 22. The Chamber was told that bridge replacement funds may be available for the $1.4 million bridge repair job. However, it may be as late as September before it is known for sure if the bridge is eligible and, if so, how much that funding would be. The board concurred with the suggestion of City Commissioner Dave Witte that the 11th Street viaduct be opened to two-way traffic to facilitate westbound 10-cent bar now 11 cents You can't buy much of anything, anywhere, for 10 cents anymore. But, when you find a 10-cent item in Sioux Falls, it costs you 11 cents.

A corrected sales tax rate chart has been in effect since late in March, but the correction hasn't caused much fuss, except from the kid who expects to buy a 10-cent candy bar for 10 cents and finds out it costs 11 cents. New tax charts sent out by the Division of State Sales Tax of the South Dakota Department of Revenue late in March contain this notation: "Due to computation errors, all former rate charts except the 4 per cent schedule are Invalid. These corrected date charts are effective immediately." The 5 per cent chart, which affects Sioux Falls with its 4 per cent state sales tax and 1 per cent city tax, now adds a penny tax at 10 cents where. a penny tax was previously added at 15 cents. The new 5 per cent rate chart now provides for a penny tax from 10 to 29 cents.

2 cents tax from 30 to 49 cents, 3 cents tax from 50 to 69 cents, 4 cents tax from 70 to 89 cents and 5 cents tax from 90 to $1.09. sells downtown land for $293,567 nlov more than 250 neoDle. Goodwill Industries, $42,500 for property at the southeast corner of 6th Street and Phillips Avenue. The Goodwill proposal includes an expansion of the present building and development of offstreet parking. The total new investment will exceed $200,000, according to the Community Development Office.

Recently, a three-story building used in the Goodwill operation was removed because of its hazardous condition. T.A. Reardon, $36,286 for a parcel of property located direct- i Apparent hit-and-run 1 MISSION, S.D. (AP) The FBI and police on the Rosebud Indian Reservation are investigating an apparent hit-and-run accident that killed a Mission man early Thursday. The body of.

Clifford Robert Hessler, 59, was found on U.S. Highway 83 three miles north of the junction with U.S. Highway 18 on the Rosebud reservation. il "i.