Wayne State University School of Medicine's faculty practice, University Physician Group (UPG), has emerged from bankruptcy, Crain's Detroit Business reported. The U.S. Bankruptcy Court in Detroit on Monday approved University Physician Group's reorganization plan and its exit from bankruptcy protection after the nonprofit medical practice suddenly filed for chapter 11 in November. UPG said in court documents filed in November that it planned to continue operating, move its corporate administrative functions to Midtown Detroit and focus on being the "premier academic clinical practice" for the Detroit Medical Center. The filing was driven by discovery earlier in the year that financial losses of the 20-year-old faculty practice plan were double the $5.5 million expected and that a new, more drastic turnaround plan was required, Crain's reported at the time. Over the past decade, UPG's number of physicians has declined by 50 percent, which has hurt clinical revenue and made its leased network of suburban offices untenable, the filing said. The court-approved reorganization plan created with consulting firm AlixPartners will help determine the future of UPG. It is expected to carry UPG from its 2018 loss of $8.1 million to $3 million in profit by 2022. Wayne State University is financially supporting UPG's efforts to pay back debts and rebuild through a restructuring support agreement.
