Just when everyone wasgetting comfortable that the issues had settled down at the DMC and Wayne State...
DMC to cut pay to WSU doctors
Money for care of poor to shrink $12 million
February 8, 2008
http://www.freep.com/apps/pbcs.dll/article?AID=/20080208/BUSINESS06/802080326
By PATRICIA ANSTETT
FREE PRESS MEDICAL WRITER
The Detroit Medical Center plans to reduce payments to the Wayne State University School of Medicine by $12 million a year, beginning Monday, in a dispute over whether the medical center pays doctors too much to treat poor patients.
WSU administrators were reeling on Thursday from the announcement, which they received Feb. 1.
A contract with DMC announced Nov. 23 calls on the DMC to give WSU $19,167,435 a year for 3 1/2 years for care of indigent patients. The money mostly helps pay salaries of WSU doctors who treat indigent DMC patients.
A portion of the money arrives twice a month; the DMC gets the money through Michigan's Medicaid program, particularly a fund known as disproportionate share payments that help to pay for care for poor patients.
A $12-million reduction leaves WSU $7 million to pay for indigent care. In 2007, WSU provided $50 million worth of care for poor patients, said Doug Czajkowski, executive director for external affairs. WSU receives money from other parts of the Medicaid budget, as well as federal funds, to pay for the $31-million balance its doctors provide in care for the poor, Czajkowski said. "This puts us in an incredible dilemma," Dr. Robert Frank, WSU's associate dean of medicine, said Thursday. "It's hard to tell doctors not to see patients, particularly vulnerable patients they've cared for for years. This could put a big hole in the safety net. We'd like to avoid the L word, for layoffs."
Frank said WSU has no further information about references DMC made in the letter to overpaying doctors to care for poor patients. He declined to release the letter.
WSU plans to evaluate the impact of the cuts for each department by Monday, Dr. Robert Mentzer Jr., dean of the school of medicine, wrote in an e-mail Wednesday to physician department heads at the school. "We are exploring several options in response to this action," Mentzer wrote. The action was "completely unexpected" and "contrary to our signed" agreement with the DMC, Mentzer wrote.
The reductions will be made retroactively to October 1, 2007, the DMC told the medical school in the letter.
Mike Duggan, president and chief executive officer of the DMC, Ben Carter, chief operating officer of the DMC, and DMC spokeswoman Rebecca Christensen did not return calls for comment.
The sparring over money is the latest in more than a year of continued fighting between the two long-time health care partners.
Last year, the two sparred over WSU's opposition to the DMC providing space to Michigan State University's College of Osteopathic Medicine for one of two metro Detroit campuses, a battle WSU lost.
DMC and WSU signed their 3 1/2 year agreement after Gov. Jennifer Granholm intervened in late January 2007 and named a negotiator to achieve a settlement, because negotiations between the two partners already were strained.
DMC to cut pay to WSU doctors
Money for care of poor to shrink $12 million
February 8, 2008
http://www.freep.com/apps/pbcs.dll/article?AID=/20080208/BUSINESS06/802080326
By PATRICIA ANSTETT
FREE PRESS MEDICAL WRITER
The Detroit Medical Center plans to reduce payments to the Wayne State University School of Medicine by $12 million a year, beginning Monday, in a dispute over whether the medical center pays doctors too much to treat poor patients.
WSU administrators were reeling on Thursday from the announcement, which they received Feb. 1.
A contract with DMC announced Nov. 23 calls on the DMC to give WSU $19,167,435 a year for 3 1/2 years for care of indigent patients. The money mostly helps pay salaries of WSU doctors who treat indigent DMC patients.
A portion of the money arrives twice a month; the DMC gets the money through Michigan's Medicaid program, particularly a fund known as disproportionate share payments that help to pay for care for poor patients.
A $12-million reduction leaves WSU $7 million to pay for indigent care. In 2007, WSU provided $50 million worth of care for poor patients, said Doug Czajkowski, executive director for external affairs. WSU receives money from other parts of the Medicaid budget, as well as federal funds, to pay for the $31-million balance its doctors provide in care for the poor, Czajkowski said. "This puts us in an incredible dilemma," Dr. Robert Frank, WSU's associate dean of medicine, said Thursday. "It's hard to tell doctors not to see patients, particularly vulnerable patients they've cared for for years. This could put a big hole in the safety net. We'd like to avoid the L word, for layoffs."
Frank said WSU has no further information about references DMC made in the letter to overpaying doctors to care for poor patients. He declined to release the letter.
WSU plans to evaluate the impact of the cuts for each department by Monday, Dr. Robert Mentzer Jr., dean of the school of medicine, wrote in an e-mail Wednesday to physician department heads at the school. "We are exploring several options in response to this action," Mentzer wrote. The action was "completely unexpected" and "contrary to our signed" agreement with the DMC, Mentzer wrote.
The reductions will be made retroactively to October 1, 2007, the DMC told the medical school in the letter.
Mike Duggan, president and chief executive officer of the DMC, Ben Carter, chief operating officer of the DMC, and DMC spokeswoman Rebecca Christensen did not return calls for comment.
The sparring over money is the latest in more than a year of continued fighting between the two long-time health care partners.
Last year, the two sparred over WSU's opposition to the DMC providing space to Michigan State University's College of Osteopathic Medicine for one of two metro Detroit campuses, a battle WSU lost.
DMC and WSU signed their 3 1/2 year agreement after Gov. Jennifer Granholm intervened in late January 2007 and named a negotiator to achieve a settlement, because negotiations between the two partners already were strained.
