Once an Enemy, Health Industry Warms to Clinton

When she tried to overhaul the nation’s health care system as first lady, Hillary Rodham Clinton alienated some people and institutions in the health care industry by championing a huge expansion of the federal role. She provoked a fierce reaction from the industry, which mocked her proposal in television advertisements and dispatched lobbyists who ultimately helped kill the plan.

But times change. As she runs for re-election to the Senate from New York this year and lays the groundwork for a possible presidential bid in 2008, Mrs. Clinton is receiving hundreds of thousands of dollars in campaign contributions from doctors, hospitals, drug manufacturers and insurers. Nationwide, she is the No. 2 recipient of donations from the industry, trailing only Senator Rick Santorum of Pennsylvania, a member of the Republican leadership.

Some of the same interests that tried to derail Mrs. Clinton’s health care overhaul are providing support for her Senate re-election bid. The Health Insurance Association of America ran the famous “Harry and Louise” commercials mocking the Clinton health care plan as impenetrably complex. Some companies that were members of that group are now donating to Mrs. Clinton.

Charles N. Kahn III, a Republican who was executive vice president of the Health Insurance Association in 1993 and 1994, now works with the senator on some issues as president of the Federation of American Hospitals, a lobby for hospital companies like HCA and Tenet. He describes his battles with the first lady as “ancient history,” and he said health care executives were contributing to her now because “she is extremely knowledgeable about health care and has become a Congressional leader on the issue.”

cont'd...

http://www.nytimes.com/2006/07/12/nyregion/12donate.html