May 22, 2003

Aetna Inc plans to announce it has reached settlement with nearly all of nation's doctors in one of largest lawsuits ever in health insurance business; Aetna chairman Dr John W Rowe says company has agreed to pay $170 million to settle its part of case that involves most of country's major health insurers; says that $100 million of settlement will go to about 700,000 doctors, just about all of physicians in country except about 50,000 training as residents or others in administrative jobs; additional $20 million is to be used to set up foundation aimed at improving quality of health care, and up to $50 million will go to lawyers representing doctors; doctors, working through medical societies nationwide, filed suit in 1999 contending that health insurance companies regularly cut back on payments for medical services and often refused to permit doctors to carry out procedures they thought best; other companies, including United HealthCare Group, WellPoint Health Networks and Health Net, remain in litigation with doctors (M)

Previously unreported portions of court documents show HealthCorp chief executive Richard M Scrushy exhorted top officials to take decisive measures to spare company disappointing profits and embarrassing loss of investment on eve of accusations of sweeping securities fraud; documents portray Scrushy as hands-on chief, intimately involved in workings of company; Scrushy's remarks are on part of secret recording made for FBI on March 18 by William T Owens, senior HealthSouth executive who is cooperating with authorities (M)

Six caterers from around New York City detail what they would have done for about $125 per person to make wedding of former Mayor Rudolph W Giuliani and Judith Nathan special had couple not decided to have reception at Gracie Mansion in Manhattan; they are Grand Prospect Hall and The Riviera in Brooklyn, Antun's in Queens, Huntington Town House in Huntington Station, NY and LiGreci's Staaten and Staten Island Hotel Island on Staten Island; photo (L)

Mad Cow Disease in Canada While officials raced to find out how a cow in Alberta contracted mad cow disease, several countries joined the United States in temporarily banning Canadian beef. PAGE A8 Global Antismoking Treaty The World Health Assembly adopted a global treaty to discourage cigarette smoking and reduce tobacco related deaths. It includes plans to ban tobacco advertising. PAGE A11

Ian Schrager's Upper West Side apartment, which underwent meticulous and pricey renovation by Philippe Starck, is proving to be white elephant; despite markdown from $22 million to $15.9 million, there appear to be no takers in uncertain market; photos (M)