January 30, 1974

NY Times discloses internal, unpublicized NYC Health & Hosps Corp rept that pattern of financing of 15 munic hosps tends to reward inefficiency, giving less productive more than they should get at expense of more productive insts; study finds there is no relation between hosp's productivity and its budget allotment; recommends that budgeting be changed to reward more productive insts and take funds from less productive; top execs term study ‘explosive'; corp acting head Donald Eisenberg rejects idea of redistribution of existing funds to achieve equity; corp dir Alan Craig Leslie attributes inequities to initial overfunding of some insts; says allocation of funds should be determined by productivity; table listing funds given to or taken from 15 hosps; study finds that although some hosps with strong affiliations are productive, they have become dependent on affiliates for routine services; repts corp profited by more than $11‐million because it paid lower‐than‐avg salaries to physicians of Downstate Med Center and to NYU drs affiliated with Bellevue; calls for creation of Hosp Performance Com to develop system to measure each hosp's productivity (L)

US Govt ends several programs controlling outflow of dollars for lending and investing abroad, including Fed Reserve's ‘voluntary’ program of restraints on bank lending abroad; Fed Reserve gov Andrew F Brimmer says separate control, known as ‘marginal reserve requirements’ on borrowing of Eurodollars by US banks, remains unchanged (S)

Manhattan (NYC): Manhattan Repub Chmn Vincent F Albano Jr, asserting that NYS Gov M Wilson will appt Dem as interim Manhattan Dist Atty to succeed ailing Frank S Hogan, implies that avg Repub candidate cannot win in overwhelmingly Dem Manhattan; William J vanden Heuvel, who was defeated in Dem primary race against Hogan last spring, has expressed interest in running again; Manhattan Dem Chmn Frank G Rossetti repts that several West Side leaders support vanden Heuvel (M)

Egyptian soldiers and civilians, who were trapped for 3 mos in Suez city resulting from Israeli crossing of Suez Canal, on Jan 29 celebrate reunion with rest of Egypt; Israeli forces, who withdrew under Egyptian‐Israeli disengagement accord, were beaten back during attempt to penetrate city in Oct Middle East war; Suez Gov Mohammed Badawi el‐Kholy says that 80% of city is destroyed, estimating that it will take 2 yrs to rebuild it; Egyptian Reconstruction Min Osman Ahmed Osman will visit area on Jan 30; War Min Gen Ahmed Ismail, speaking to Egyptian 3d Army, alludes to fact that under agreement Israelis will withdraw to about 20 miles east of canal but will retain control of rest of Sinai Peninsula; atmosphere in Suez city described; illus (L)

NYC Correction Dept repts that NYC jail population dropped 20% in last yr, and 40% in 3 1/2 yrs since Queens and Manhattan House of Detention riots; reductions attributed to lowered crime and drug addiction rates, new alternatives to pretrial detention and more efficient ct adm; Deputy Correction Comr Jack Birnbaum and Sup Ct Justice David Ross comment (M)