November 22, 2006

Ensures Long-Term Stability in Partnership

LANSING - Governor Jennifer M. Granholm, Wayne State University (WSU) President Irvin D. Reid, Dr. Robert M. Mentzer, Jr., dean of the WSU Medical School, and Detroit Medical Center (DMC) CEO Michael Duggan, today announced an agreement that will ensure the long-term stability in their partnership to provide access to health care, graduate medical education, and medical research in Southeast Michigan.

In announcing the agreement that was reached under the direction of the governor's mediator, David H. Fink, Granholm said the new contract will be instrumental in protecting the supply of physicians in Michigan as well as the economic vitality of the region.

"The long-term stability of the partnership between these two institutions is critical for health care in Detroit, Southeast Michigan and the entire state," Granholm said.  "Access to health care and health care education and research are more important than ever to the region and the state, so I congratulate all of the parties for reaching a landmark agreement."
 
President Reid said, "I am pleased that we have reached this agreement which represents the commitment of Wayne State University in collaboration with our traditional partner to provide excellent graduate medical education, strong research programs, and high quality health care for the neediest of our citizens in Southeast Michigan."

The parties have reached agreement on a new three and a half-year teaching, clinical, and administrative contract to begin January 1, 2007.  The agreement preserves all 68 current WSU/DMC residencies and assures the long-term stability of each and every residency.  It includes the following provisions:

- The parties have agreed that a major core of residency training programs will remain under joint sponsorship. These programs represent key areas in which the two institutions are inextricably linked in terms of education, research, and companion clinical programs.

- A small number of residencies will become sole sponsored WSU residencies and a small number will become sole sponsored DMC residencies.  For the sole sponsored WSU residencies, there will remain the option for DMC to participate as a training site. For the sole sponsored DMC residencies, WSU will remain DMC's sole academic affiliate.

- WSU and DMC have agreed that the joint sponsorship status of all of the other residencies will remain unchanged until at least 2009.

"The School of Medicine is the only medical school serving a region of more than six million people. We have the privilege of exploring the science of medicine while caring for the people of this region.  We are able to teach future physicians, pursue medical research and touch the lives of so many in this community," Mentzer said.

The agreement calls for Detroit Medical Center to fund Wayne State University/University Physicians Group in annual base amount for teaching, clinical, and administrative services at approximately $76 million a year.  This will allow WSU to continue its historic mission of providing essential safety net services to the uninsured and support the university's longtime commitment to the quality of life in the city of Detroit.

"This agreement will protect the health care safety net in Southeast Michigan," said Duggan.  "We will continue to provide health care to those who need it most for years to come."

In addition, the agreement calls for the potential payment of an additional $8.8 million in performance bonuses and recruitment support.  The performance criteria focus on the enhancement of clinical quality and have been drawn up jointly by WSU faculty physicians and DMC hospital administrators in order to improve patient care.  They include such initiatives as reduced surgical infection, and reducing hospital length of stay.  This is the first time in their 26 year partnership WSU and DMC have agreed on mutual performance criteria.

Finally, on clinical services, the agreement calls for an 18 month phase of the agreement during which both parties will complete the transition of programs already changing primary location.  For the balance of the transition period, both parties have agreed to focus on building the depth and breadth of the long-term WSU/DMC partnership and that neither party will pursue new competitive activities that would disrupt that partnership. 

Governor Granholm has agreed to appoint a Blue Ribbon Commission on Graduate Medical Education to evaluate potential options for residency structures and to make recommendations as to the best means to train residents in Southeastern Michigan.