The sudden bankruptcy filing Nov. 8 of the Wayne State University Physician Group was driven by discovery earlier in the year that financial losses of the 264-physician faculty practice plan were double the $5.5 million expected and a new, more drastic turnaround plan was required, according to a Crain's Detroit Business commentary. Over the next four months, as UPG works with the U.S. Bankruptcy Court in Detroit and the hundreds of creditors to come up with a final plan, the future of the 18-year-old faculty practice plan once designed to be a profit center for Wayne State will be made more clear. What is certain, however, is UPG will never become the large, clinically comprehensive and profitable practice plan envisioned by former Wayne State Medical School Dean John Crissman back in 1999. Beyond the current financial crisis, the reasons include mismanagement, overly ambitious growth plans, competition, lack of teamwork and a common goal among physician faculty members, according to the commentary. For at least the next decade, UPG will be, at best, mildly profitable as a much smaller clinical enterprise of 100 to 200 doctors with top-notch specialists. It will also primarily serve as a vehicle to service the medical education contract at Detroit Medical Center, Henry Ford, and the WSU School of Medicine's other residency program commitments. Read more.
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