August 28, 1993

In a rapidly widening effort to root out health care fraud, Federal officials have subpoenaed Medicare and Medicaid billing records of at least five of the country's largest medical laboratory companies. Although no charges have been brought against the companies, the investigation of the $32-billion-a-year blood-testing industry is the latest of several inquiries by law-enforcement agencies. Federal officials have said that medical fraud may account for $80 billion to $100 billion of the more than $900 billion that Americans will spend on health care this year. Companies Confirm Subpoenas Corning Inc., which has the nation's largest blood-testing business, confirmed yesterday that both its Metpath subsidiary and Damon Clinical Laboratories, which it acquired last month, had received subpoenas from the office of the Inspector General of the Department of Health and Human Services. SmithKline Beecham, the second-largest laboratory company, also confirmed that a subpoena had been received.

The Security Council voted unanimously today to suspend its oil embargo against Haiti, and diplomats said the first oil tankers should reach the Caribbean country within days. The oil embargo and other sanctions placed on Haiti two months ago had a devastating effect on the country's already shattered economy and were, diplomats said, a major factor behind the ruling military junta's agreement to step down and permit the return of the Rev. Jean-Bertrand Aristide as President.

The quiet, bespectacled woman told her Bible teacher at the Church of the Nazarene that she would not be attending the next class. "Going on one of your trips?" the Rev. Ted Rosenau asked.

Peres-P.L.O. Meeting Cited Israel's Foreign Minister was reported to have met with a P.L.O. official over a plan for Palestinian self-rule in the occupied territories. Page 3. S.S. Past of General's Father The father of Gen. John Shalikashvili, the man nominated to head the joint chiefs of staff, served in a Nazi unit, according to university files. Page 7. New Plan for Flooded Areas The Clinton Administration is considering a plan to convert towns and farmland damaged by the Midwestern floods into wetlands. Page 6. Consensus on Chancellor A Board of Education majority plans to back a former San Francisco superintendent as New York City's next chancellor, officials said. Page 21.

New York has done less than other cities in turning municipal services over to private companies, and its efforts may be further slowed by the recent trouble involving the Parking Violations Bureau, say city officials and government analysts. Compared with New York's vast municipal bureaucracy and budget, the work that has been transferred to private companies under Mayor Dinkins has been modest: managing 330 centers for the elderly, custodial services at 99 public schools, and boiler inspections at the city's commercial office buildings. A wide spectrum of New Yorkers say more should be done, from contracting out clerical work to hiring private businesses to run bridge tolls and handle water treatment. The issue unites some members of Mr. Dinkins's staff with business executives and critics of city government.