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" EXECUTIVE OFFICE OF THE PRESIDENT
JUNI G10.
BUREAU OF THE BUDGET
WASHINGTON 25, D.C.
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PENIS oH
MEMORANDUM FOR THE PRES DENT
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Subjects "htomic Energy Commission Hospital at Oak Ridge, Tennessee
OF (0 7-f.
In October 1956 you authorized, under Budget Circular A-27, the Atonic
Energy Commission to oeuiree-TfesbedDak Ridge, Tennessee, by
construction of a new building and modernization of the two permanent structures
of the existing hospital. The Commission now requests modification of this
authority to permit it to construct an entirely new 175-bed hospital in lieu
of uSing part of the existing hospital,
The Commission proposes other uses of the two permanent buildings in the
existing hospital. One would be turned over to the hospital Board of Trustees
for operation of a nurses' training school at no cost to the Uovernment. The
other structure would be used to expand the Commission's cancer research pro-
gram at a cost to the Commission of about $150,000 for alteration and moderni-
zation of the building and @ subsequent increase of $0,000 in anual operating
costs. Neither of the buildings could be utilized for these purposes until
1960 when the new hospital is completed.
The Commission also finds upon further study that only slightly more than
$100,000 in construction costs would be savad if these two permanent buildings
were utilized as a part of the new hospital. The community non-profit hospital |
association has agreed to take over an entirely new hospital and operate it
;
without Federal subsidy. The association refuses to enter into a similar agree=ment if the two existing builaings are incorporated in the new hospital.
OF {7 CS After careful evaluation it is our belief that establishment of a school of
__nursing _hiehly desirable end the cancer research operation is worthwhile. In
view of the budgetary situation, however, no commitment should be made at thic
- WI-E time on expansion of thecancerresearch program; this should be decided on its
merits when the building becomes available for that use.
Because of the alternate uses for the existing buiidings and the possibility
of continued Federal subsidy of operating losses if they are utilized as part of
the hospital, it is recommended that the Atomic Energy Commission's request for
authority to construct an entirely new 175=bed hospital be approved with the
understanding that before proceeding with the project the Commission obtain from
the hospital Hoard of Trustees a firm commitment to take over the hospital on a
subsidy free basis when occupancy of the new hospital is completed,
Pinector 72-8
APPROVED:
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