
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, May 23, 1990                   TAG: 9005230663
SECTION: VIRGINIA                    PAGE: B-7   EDITION: EVENING 
SOURCE: Associated Press
DATELINE: NORFOLK                                 LENGTH: Short

NAVY INSURANCE FUND BROKE UNTIL OCTOBER

The Navy's medical insurance fund has run out of funds for the remainder of the fiscal year, creating concern among the doctors and hospitals serving the strong military presence in southeastern Virginia.

Children's Hospital of The King's Daughters in Norfolk likely will have to ask its creditors to be patient between now and the start of the new fiscal year in October, spokeswoman Amy Simpson said Tuesday.

In the interim, King's Daughters, the largest pediatric CHAMPUS customer in the country, promises not to turn any patient away, Simpson said.

"We will not be looking at anything like that," she said.

King's Daughters conducts about 25 percent of its business with patients of CHAMPUS, for Civilian Health and Medical Program of the Uniformed Services. Simpson said the Navy's inability to pay the insurance claims means about $930,000 a month in reduced income for the hospital.

This marks the sixth consecutive year the Pentagon has run out of money to cover the military health insurance plan. The Air Force is expected to run out of money this week and the Army early next month.

The run on CHAMPUS funds resulted from a combination of soaring health care costs and higher use, said the Navy's surgeon general, Vice Adm. James Zimble.

The Pentagon this week submitted a request to Congress for permission to redirect $648 million to cover the shortfall. But congressional staff members said it is uncertain how or when the money might actually be available.

by CNB