Wayne State University and Detroit Medical Center settle dispute over compensation for physician services

Amicable agreement signifies renewed spirit of cooperation by Detroit’s essential institutional health-care partners
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DETROIT, February 9, 2009 – Wayne State University, the Wayne State University Physician Group and the Detroit Medical Center today announced an agreement that resolves a year-old funding dispute.

The agreement was negotiated by representatives of all three entities, and puts to rest a disagreement between the Detroit Medical Center (DMC) and the Wayne State University Physician Group (WSUPG) over the amount of compensation owed WSUPG for care provided to uninsured and underinsured patients treated at DMC facilities.

“This agreement allows us to focus more fully on our common objectives, the most critical of which is the provision of health care for more than 80 percent of Detroit’s uninsured and underinsured populations,” Wayne State University President Jay Noren said.

The agreement resolves a dispute that arose Feb.1, 2008, between Wayne State University and the DMC, whereby the DMC withheld payments to the WSUPG over concerns about a potential violation of federal law.

Wayne State University contracted an independent evaluator to analyze the issue and the evaluator concluded that the payments were within the accepted value range. Subsequently, both the WSUPG and DMC agreed to redefine the services to be provided by WSUPG to address the disputed $12,300,674 in compensation.

“It’s gratifying that we were able to develop an agreement that allows us to move forward to serve our students and the people of the Detroit region,” said Robert M. Mentzer Jr., M.D., dean of the School of Medicine. “The relationship between Wayne State University and the Detroit Medical Center is important to the community, and will continue to evolve.”

“In spite of the complex issues we face as academic and clinical partners, Wayne State and the Detroit Medical Center share a common mission,” said Mike Duggan, president and chief executive officer of the DMC. “We exist to provide the people of Detroit with the best medical doctors, research and treatment found anywhere in the world.”

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