Detroit Medical Center, Wayne State University Reach Contract Deal That Includes

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Detroit Medical Center, Wayne State University Reach Contract Deal

That Includes Pay-For-Performance System

http://www.medicalnewstoday.com/medicalnews.php?newsid=57705

(NOTE: Wayne State is where Dr. Shy, CMT doctor is located)

Detroit Medical Center and Wayne State University on Wednesday

agreed to a three-and-a-half-year contract that will provide $76

million annually for the medical school and implement pay-for-

performance systems at DMC's eight hospitals, the Detroit News

reports. According to the News, at " stake in the dispute was the

care provided by nearly 1,000 medical residents and hundreds of

faculty physicians who make up the core of programs that treat the

city's " low-income and uninsured residents. In addition, the medical

school trains hundreds of physicians annually as the state is facing

a physician shortage expected to reach 6,000 by 2020, the News

reports. Under the agreement, the institutions would jointly run

dozens of graduate education programs and the majority of residency

programs. The agreement also includes $8.8 million in recruitment

money and performance bonuses paid by the DMC to WSU physicians and

administrators who work there. The physicians also would receive

cash incentives for reducing infections and shortening hospital

stays. Mike Duggan, DMC CEO, said the center " didn't get everything

we want. But we got the most important thing, " which is the pay-for-

performance system for hospital physicians and administrators.

Herbert erman, a WSU faculty member who practices at the DMC,

said the agreement is " critically important for the economic, health

and overall well-being of the city, region and state that these two

important institutions stay together and work together effectively "

(Terlep, Detroit News, 11/23).

" Reprinted with permission from http://www.kaisernetwork.org.