Railroad Health Care

Trains Magazine General Discussion
1

During my employment with the Santa Fe and the Illinois Central, both companies had company doctors and owned hospitals and these were the primary sources for health care for company employees. This health care was provided as a benefit in lieu of what was even then the more common practice of company paid health insurance. I don’t know about the Santa Fe, but the IC sold the their Chicago hospital around 1972, and adopted a convential insurance plan.

I think railroads were providing this benefit as early as the beginning of the 20th Century. I’ve wondered if this was the start of company paid health as an employee benefit. As most would know, the growth in the demand and the cost of health care has brought about great conflict over who should pay-companies, individuals or taxpayers.

So, should railroads be blamed for starting it all?

Jay

2

Interesting history.

A minor point. The Illinois Central’s Chicago hospital was still owned by the railroad as late as 1972. I know because I had the privelege of haveing to undergo a annual 2 day inpatient “health audit” required of all the Chicago area non-union employees. (Chairman, President and VP’s included). For six months after, I would have a flashback at the sight of orange juice and then would start to wonder if a terminal illness would be a good excuse to get out of the procedure.

Jay