DMC wants to acquire the medical school’s University Physician Group while Wayne State would rather integrate physician organizations and financial support for research and care delivery, according to Crain’s.
The two groups have been negotiating an expired long-term clinical services agreement, according to the report. That is, until last week when DMC CEO Joe Mullany sent a letter to Wayne State’s medical school dean Jack Sobel, MD, asking to buy UPG. In addition, the letter, which was also sent to Crain’s,proposed options to enter into a joint venture or professional services agreement, according to the report.
Dr. Sobel reaffirmed that the group is not for sale, but he will present the offer at the next board meeting, according to the report. However, he noted that he and Wayne State’s vice president for health affairs, David Hefner, are disappointed that DMC’s offer was not “transformational,” according to the report. Instead, he called the offer “transactional.”
“When we talk about a transformational relationship, we’re talking about much more than aggregating more assets, building more buildings, or buying physician’s practices, such as the one proposed by the DMC,” said Mr. Hefner, according to the report. Mr. Hefner said Wayne State’s research draws in more complex patients and potentially higher margins that enhance the system’s brand and academic mission, according to the report.
Mr. Mullany said he is open to including these concepts in the contract, but that DMC still needs more control over the physician group, according to the report. He said he thinks the offer is transformational.
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