The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Wednesday, December 13, 1995           TAG: 9512130433
SECTION: LOCAL                    PAGE: B2   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: RICHMOND                           LENGTH: Short :   42 lines

MEDICAID DIRECTOR NAMED HEAD OF HEALTH AND HUMAN RESOURCES

The director of the department that oversees Medicaid in Virginia was appointed Tuesday as acting secretary of health and human resources.

Gov. George F. Allen said Robert C. Metcalf, director of the state Department of Medical Assistance Services, will succeed Kay Coles James effective Jan. 1.

James is resigning to pursue other interests and has been mentioned as a possible candidate for state Republican Party chairwoman.

Metcalf ``has clearly demonstrated outstanding accountable and responsible leadership that Virginians rightfully expect and deserve,'' Allen said.

Allen announced Metcalf's appointment while both were in Washington discussing Medicaid and other budget issues with congressional leaders and governors from other states.

The appointment must be confirmed by the General Assembly, which convenes Jan. 10 for a 60-day session. Metcalf will retain his current job and salary while also serving as a Cabinet secretary.

Allen said the challenges Metcalf will face include the statewide phase-in of welfare reform, efforts to make the Medicaid system more accountable and maintaining quality in the state's health-care system.

``He's a very natural choice,'' said Allen spokesman Ken Stroupe. ``His expertise in Medicaid is certainly important in light of what is going on with the federal budget.''

The budget now being negotiated in Congress is likely to give states more decision-making authority on Medicaid.

Before joining the Allen administration in 1994, Metcalf was a partner in a Richmond law firm. He worked with cases relating to estate planning, elder law and estate administration.

KEYWORDS: APPOINTMENT by CNB