University Times

Pitt's 18 clinical practice plans are merging into a single plan, which will be a not-for-profit subsidiary of the University of Pittsburgh Medical Center (UPMC) System.

The unified plan will be called University Physicians Practice. "We're shooting for October as the point we can incorporate the plan," said James Herndon, Pitt associate senior vice chancellor for Health Sciences and chairperson of the University's Council of Clinical Chairs.

UPMC System and Pitt Health Sciences officials say the merger will benefit the University, its clinical faculty and the medical center system by creating a unified organization that will respond more efficiently to new opportunities in the health care market.

"In the past, when an outside entity like a health insurer wanted to contract with us, they had to deal with 18 individual practice plan chairs plus the [UPMC System] hospitals," said George Michalopoulos, associate vice chancellor for the Health Sciences and interim dean of the medical school. "By gathering all of the clinical practice plans into one entity, we will make it easier for the plans to respond with one voice." Although the 18 current practice plans formed a federation in August 1995, each remains a separate corporation with its own guidelines or bylaws. "Some are for-profit corporations, others are not-for-profits. They all have their own billing systems and provide their own fringe benefits" to the clinical faculty they employ, Herndon said. The unified plan will have a single billing system, bylaws and board of directors and will provide uniform fringe benefits, he said.

At a recent meeting of the Senate budget policies committee, faculty members expressed concern because creation of University Physicians Practice will move the practice plans out of an academic part of the University (the UPMC Division) to the UPMC System, which is a non-profit corporation that is separate and distinct from Pitt. "I know that it has been looked at from that perspective," Michalopoulos said. "However, I think the University community needs to understand that the whole process was done in a thorough and participatory way. Every [clinical department] chair had a chance to vote on this, and the votes were unanimous that the practice plans should move under UPMCS because it enhances the cohesiveness of the clinical, financial enterprise on which the academic enterprise depends." Herndon noted that the University Physicians Practice board will include Pitt's chancellor and senior vice chancellor for Health Sciences, as well as the chairpersons of Pitt clinical departments.

— Bruce Steele