April 27, 2002

At time when many nonprofit hospitals are struggling, large group owned by those hospitals is spending tens of millions of dollars to shore up its investment in for-profit electronic company in which some of group's officials own stock; some hospital executives, told of arrangement, criticize it as conflict of interest; last year, hospital group, Novation, and hospitals that own it backed electronic commerce company, Neoforma, with about $70 million in subsidies, stock purchases and loans; Neoforma, Web site where Novation hospitals and others can buy supplies, has never turned a profit and has reported losses of $500 million since it was founded in 1996; Novation and its affiliates own 61 percent of Neoforma, and 10 officials who play a role in overseeing Novation also own or have owned stock in company; photo; graph shows declining share price of Neoforma following its initial public offering (article in series Medicine's Middlemen) (L)

Art deco terminal that was once centerpiece of old Newark Airport has been moved to center of airport; known as Building 51, it has glorious history with veritable Who's Who of aviation legends passing through its doors; served as area's first passenger terminal, airmail center, administration building, air traffic control tower and meteorological bureau; photos of building in 1935 and today; map of route taken to move Building 51 (M)

New Jersey Nets defeat Indiana Pacers, 85-84, in Game 3 of Eastern Conference playoff series; Nets lead series, 2-1; photos (M)

Recently expelled student enters his former school in Erfurt, Germany, and methodically kills 17 people, using rifle and handgun, before turning gun on himself; rampage is one of worst school killings of its type anywhere, and seems all more disturbing because it occurs in country with gun-control laws so strict that number of shooting deaths nationwide is barely half that of New York's; gunman, identified as Robert Steinhauser, 19, goes from room to room, shooting as many teachers as he can find; total of 14 teachers, three students and one police officer seeking to get into school are killed, in addition to Steinhauser himself; frightened students refuse to leave hiding places within school for hours, fearing second gunman; six people are wounded in rampage; photos; map (M)

New York City Board of Education has moved up date for admissions test to selective science high schools--Stuyvesant, Bronx Science and Brooklyn Tech--by about six weeks; change throws many families' summer plans into turmoil as they scramble to find preparation time for their children planning to take test; schools have reputation for being among most demanding in country (M)

A Visitor From China Vice President Hu Jintao, the mystery man expected to take over as China's leader this fall, starts his first visit to the United States this weekend. PAGE A3 Merrill's Chief Apologizes Shortly after Merrill Lynch's chief apologized for the behavior of some analysts and pledged to punish anybody who violated policy, the firm dismissed one analyst. PAGE C1

Lawyers who once despaired of ever focusing sustained attention on problem of pedophile priests now find themselves in spotlight, with too many cases and competition on horizon; since early 1980's, about half dozen lawyers around country have been suing Catholic dioceses and officials in sexual abuse cases involving priests and children; Jeffrey R Anderson of St Paul, Minn, has represented more than 400 people who say they were abused by priests in last 20 years; he estimates that he has won more than $60 million in settlements from Catholic dioceses; he recently sued Catholic Church officials under racketeering law, saying their conduct in covering up accusations against priests amounts to pattern of criminal conduct; he is also suing Vatican; says he would welcome company of other plaintiffs' lawyers in what is fast becoming lucrative specialty; photos (M)

Crown Prince Abdullah of Saudi Arabia presents 8-point proposal to Pres Bush calling for end to Israeli military action in West Bank and opening of American-led peace initiative in Middle East supported by international peacekeepers, as well as aid to help with reconstruction; Saudis view commitment of American aid to Palestinians as way of restoring trust with Arab world and demonstrating American commitment to balanced peace strategy; Bush administration has endorsed aid to Palestinians and reconstruction efforts, although progress has been stymied by violence; Saudi plan also calls for renunciation of violence by both sides, as well as end to construction of Israeli settlements on lands that would be part of new Palestinian state should Israel accept peace initiative offered by Arab leaders in Mar (M)

Dr J Craig Venter, scientist who led Celera Genomics' successful effort to decode human genome, reveals that genome decoded was largely his own; reactions among scientists range from amusement to indifference, most saying it is unimportant whose genome was sequenced; members of Celera's scientific advisory board voice disappointment that Venter subverted anonymous selection process they had approved; Venter says his reason for having his own genome sequenced was in part scientific curiosity but also sense of responsibility; says he felt that because he asked other people to donate tissues, risking invasion of their genetic privacy, he should be first in line; says he did not make it known at time because he did not want it to be issue or focus of research; photos (M)

Government reports that economy grew this winter at its fastest pace in more than two years, delivering clear sign that recession has ended and that new expansion has started briskly; but analysts say that growth is unlikely to continue at 5.8 percent pace of first three months of year, pointing to signs that economy has already weakened slightly in April; consumers, flush with large tax refunds and helped by low interest rates, continue to spend freely in first quarter; 5.8 percent annual growth rate in nation's economic output for first quarter is up sharply from 1.7 percent pace for final quarter of 2001; photo; chart shows annual rate of change in value of gross domestic product (L)

Senate and House members agree on $100 billion farm bill that would reverse Congress's attempt six years ago to wean farmers of all subsidies; new bill raises subsidy payments to country's biggest grain and cotton farmers over next six years; bill will also finance some of most significant conservation and environmental programs in recent years, with $17 billion dedicated to preserve farmland, save wetlands and improve water quality and soil conservation on working farms; bill also increases food stamps for working families and children and restores right of legal immigrants to receive them; bill seeks to satisfy every region and segment of country, following months of election-year jockeying; chart gives closer look to main provisions (M)

Pres Bush calls sharply for Israel to halt its incursions into Palestinian-controlled territory after 2 men are killed and 11 others arrested during Israeli army raid on West Bank city of Qalqilya; Bush makes his demand day after meeting with Crown Prince Abdullah of Saudi Arabia, who has insisted that US take some distance from Prime Min Ariel Sharon of Israel; Sharon's standing with his own people has risen with incursions, with strong majority of Israelis saying they feel safer after offensive; with strong backing for his policies, Sharon is hesitating over admitting United Nations team to investigate Palestinian charge that hundreds of civilians may have been killed by Israeli military at refugee camp at Jenin, charge army rejects; Bush first called for Israeli withdrawal on Apr 4, and later suggested he was satisfied with partial pullback from most of cities and towns it seized since late Mar, in what it calls hunt for terrorists; Israeli officials say Palestinian administration refuses to crack down on violence; photo (M)