Henry J. Kaiser And Sidney R

3102 WordsAug 3, 201513 Pages
Henry J. Kaiser and Sidney R. Garfield founded Kaiser Permanente in 1945 after the derivation of Kaiser industrial companies insurance consortium called Industrial Indemnity in the 1930s. The industrial heath care program was put into place for construction, shipyard, and steel mill workers for the Kaiser industrial companies as a workers’ compensation obligation. Dr. Sidney Garfield saw the construction of the Colorado River Aqueduct Project as an opportunity to treat sick and injured construction workers. He then contracted with Henry J. Kaiser industries and built the Contractors General Hospital in a small town called Desert Center, California. In the height of the Great Depression, a time of economic devastation, it was extremely hard for patients and even insurance companies to pay their expenses. Kaiser Permanente put into place the prepayment system, where insurance companies were required to pay a fixed amount per day at the cost of five cents from insured workers’. After the construction of the Colorado Aqueduct Project, Dr. Garfield’s efforts continued in Washington state where the Grand Coulee Dam was being built. The Kaiser Company contracted with Dr. Garfield to reproduce the same project at Colorado River Aqueduct in California this time at Mason City Hospital. Unlike the Colorado River Aqueduct project, the workers on the Grand Coulee Dam brought their families with them. Unions forced the Kaiser Company to insure their dependents and this marked the

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