March 10, 2008

IN THIS ISSUE

Editor's Column: What Is VEBA And Why Is It Important To Us?
Physician Leaders Speak Out On WSU-DMC Crisis
Dr. Silbergleit Receives Courage-To-Teach Award
WSU Medical Students Gain 'Worldly' Experience
Health Alliance Plan CEO Steps Down
Receiving's Dr. Stellini Appointed To Pain Panel


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Editor's Column: What Is VEBA And Why Is It Important To Us?

By JOSEPH WEISS, MD
What is a Voluntary Employees Beneficiary Association (VEBA) agreement? The medical community can consider VEBA as an agreement between employer and employees whereby the employer provides money to a trust that is independent of the employer and controlled by the employees.

As far as the medical community is concerned, the purpose of a VEBA trust is to acquire assets sufficient to pay for health benefits negotiated by the employer and the employees. A VEBA trust can pay other employee benefits and expenses, but that is not of our interest.

For the employer, a VEBA agreement removes a large liability from their balance sheet, and ends the risk of ever-increasing retiree health costs. For the employee, the VEBA removes the uncertainty of loss of benefits if the company revenue declines or the company goes into bankruptcy.

A VEBA may pay for health insurance, long-term care, Medicare Part B and Medicare supplements, insurance co-pays, deductibles, and prescription co-pays. The VEBA can pay for more -- such as glasses and dental care -- depending on negotiations and the expected cost of additional benefits.

The earnings on VEBA assets are tax-free. However, assets must earn enough to pay for both the cost of present benefits and future health expenses of employees covered by the VEBA agreement. How the plan is funded, by a lump sum, period funding, or pay-as-you-go is decided by negotiation between employer and employees. Whether the plan will be defined benefit or defined contribution is a decision of the employees and the VEBA trustees.

How do these outlines apply to the UAW agreement with Ford, General Motors and Chrysler? The estimates of the total assets the UAW VEBA need runs from $35 billion to $75 billion. The assets the UAW negotiated are unknown; press reports range from $29 billion to $50 billion. Part of this amount is said to be in automotive stock, a value that can fluctuate greatly, particularly down. Accurate details of the agreement are difficult to come by, as a group of UAW retirees have brought a challenge of the agreement to federal court. Their grounds are that the assets the Autos are to transfer to the VEBA trust are inadequate for the responsibilities the VEBA must take on. While the case is in court, people close to the agreement are reluctant to discuss its clauses and their implications.

It is known that the UAW is accepting proposals for its Medicare retirees; Blue Cross is preparing a proposal and it is likely United HealthCare will do the same.

The UAW VEBA covers more than 500,000 auto retirees and their families, with the majority living in Michigan. Furthermore, the UAW model is likely to extend to auto related companies, other manufacturers and into business sectors such as technology. The medical community needs to watch the UAW VEBA closely.

The ideal would be to have at least one Michigan State Medical Society representative on the VEBA Board of Trustees. The physician community needs a voice on health decision that will affect not only the 500,000 auto retirees and their families, but Michigan’s 28,000 physicians and their practice of medicine.

Editor’s note: I obtained much of the information for this editorial from a presentation by Mr. Thomas C. Michaud on Feb. 7 at the Southfield Westin Hotel; the interpretations are my own.

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Physician Leaders Speak Out On WSU-DMC Crisis

Editor’s note: The following opinion piece by WCMSSM Past President and MSMS board member Daniel Michael, MD, appeared in the March 5 edition of the Free Press. Immediately following Dr. Michael’s piece is a letter to the editor penned by MSMS President AppaRao Mukkamela, MD, in response to a March 4 editorial published by the Detroit News.

DMC Cuts to WSU Would Damage Safety Net

When the ground underfoot is continually quaking, it's only human nature to seek a more stable place to stand.

Physicians of the Wayne State University School of Medicine continue to be shaken by a recent series of disputes with the school's longtime partner in health care, the Detroit Medical Center.

When the DMC recently announced the withholding of $10 million to $12 million in state and federal dollars from WSU physicians who treat indigent patients in Detroit -- money the School of Medicine already has budgeted -- it created a ripple effect that is often unseen, but certainly will be felt, by the general public.

We fear the consequences may begin to unravel the already fragile health care safety net in Detroit, leaving the city's most vulnerable patients without access to the physicians they need, and affecting Michigan's entire health care system.

Consider these facts:

• WSU physicians and resident physicians provide 80 percent of the care for Medicaid patients and the working poor in Detroit. Physicians at Wayne State agreed to take on the responsibility of caring for indigent patients in partnership with the DMC with the expectation of reimbursement as negotiated.
• WSU physicians are dedicated to the Wayne State University School of Medicine, which is ranked among the top 20 percent of medical schools nationally. About 60 percent of WSU's medical school graduates stay in Michigan. Nearly every county in Michigan has a Wayne State graduate practicing there.
• We already are facing a shortage of physicians in Michigan. DMC's reimbursement cuts will exacerbate the problem. It's hard enough to recruit top physician educators without this added trauma.
• Any one of the excellent physicians at Wayne State would have an easier and more financially rewarding practice somewhere else. Most physicians have spouses and children and mortgages and medical school debt to consider. If the family as a whole feels uncertain, the physician may seek a more stable place to practice.
• Physicians of the Wayne State University School of Medicine are committed to the care of patients in Detroit who are uninsured and underinsured. The accusation from the DMC that they are overcompensated for this work does not seem credible. It seems unwise for a hospital board and administration to break an agreement and consciously or unconsciously upset one of their most important constituencies, the physicians who actually provide the care to the hospital's patients.

We are encouraged by recent media reports about the hiring of an independent mediator, and we hope for a swift settlement of this dispute. Cascading events will erode health care not just for the indigent of Detroit, but also for everyone in Michigan.

In the meantime, it seems reasonable to expect the DMC to continue to make payments to Wayne State as negotiated to keep the School of Medicine operating as budgeted and the health care safety net intact.

A stable relationship between the DMC and the WSU School of Medicine is critical to the health of all Michigan citizens.

DANIEL B. MICHAEL, MD, PhD, is a Detroit neurosurgeon, chair of the Wayne County Medical Society Board of Trustees and speaker of the Michigan State Medical Society House of Delegates. Write to him at msms@msms.org.

Below is a response by MSMS President, AppaRao Mukkamala, MD, to the Detroit News regarding that paper's recent editorial on this subject.

March 4, 2008

LETTER TO THE EDITOR
The Detroit News
615 W. Lafayette Blvd.
Detroit, MI 48226

Dear Editor:

Your diagnosis that the "Wayne State-DMC dispute requires quick action" as noted in your Feb. 29 editorial is absolutely correct. 

DMC's recent unilateral cut in funding for indigent care provided by WSU School of Medicine's faculty physicians is the latest uncertainty that can have long-term negative effects for health care in Detroit, Wayne County, and the entire state.

Uncertainty makes it difficult to retain exceptional physician educators, it makes it more difficult to recruit the best and brightest physicians and students, and it does nothing to maintain the reputation of DMC, Wayne State, and Detroit as a place of excellence in health care.

We need a return to a healthy, respectful partnership between the DMC and Wayne State if we are to educate the physicians Michigan needs, not only for Detroit's health care safety net, but to provide doctors for communities throughout our state.

Sincerely, 

AppaRao Mukkamala, MD, President
Michigan State Medical Society
East Lansing

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Dr. Silbergleit Receives Courage-To-Teach Award

Professor of surgery Allen Silbergleit, MD, PhD, was among residency program directors recently awarded the Accreditation Council for Graduate Medical Education’s (ACGME) 2007 Parker J. Palmer Courage to Teach Award.
The award is named after Parker J. Palmer, PhD, a sociologist and educator who wrote “The Courage to Teach,” a book of reflections on the intellectual, emotional, and spiritual aspects of teaching. Each year the ACGME chooses recipients from among numerous nominees submitted to the council. The award honors program directors for their exemplary teaching of residents and leadership of innovative and effective residency programs.

“For a person who believes that the greatest calling in life is teaching and who believes in his work with every fiber of his being, the Parker J. Palmer Courage to Teach Award might as well be the Nobel Prize,” said Dr. Silbergleit. “What could be more important than the advancement of civilization by the young men and women we imbue with the spirit of humanism and inquiry?”
Winners were honored at a dinner during the ACGME’s winter Board of Directors meeting.

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WSU Medical Students Gain 'Worldly' Experience

For some School of Medicine students, spring break isn’t spent on a beach in the Caribbean.

Members of the World Health Student Organization (WHSO) of Wayne State University School of Medicine are spending their vacations assisting people in poverty stricken villages in Central and South America. This year, five trips have been organized to Ecuador, Costa Rica and Guatemala that bring 65 School of Medicine students to serve communities in rural locations. The students transport much-needed medical supplies and services to these areas, and gain valuable clinical experience.

“The real strength of trips like these is the perspective you gain,” explained second-year student and WHSO President Michael Gratson, who traveled to Belize last year. “The opportunity to visit a third world country and see how some people live made me realize how much we take for granted. The trip helped me re-center my commitment and my passion for medicine.”

The WHSO helps provide basic health care needs and health education to the local populations in these countries. First- and second-year students travel to remote villages and establish temporary clinics containing triages, pharmacies and exam areas. They are given unique opportunities to work closely with physicians in multiple medical specialties. Students are exposed to a wide array of ailments and to working one on one with patients in clinical settings, allowing them to develop essential clinical and diagnostic skills.

The WHSO emphasizes understanding of the healthcare needs of developing nations and exposure to clinical settings not routinely found in the United States.

“It is our hope that students will gain a deeper passion for healing and a stronger sense of respect for different cultures,” said second-year student and WHSO Vice President Stephanie Loe. “Our group traveled to different villages in Guatemala last year. At one location, we set up a clinic inside a family’s home. People lined up outside the door. I witnessed an amazing sense of community. I received an invaluable experience.”

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Health Alliance Plan CEO Steps Down

Francine (Fran) Parker, president and chief executive officer of Health Alliance Plan (HAP), has announced her resignation effective March 31, citing personal reasons.

Her HAP career spans three decades, joining the Detroit-based health plan in 1978 as one of 14 employees. Parker was appointed president and chief executive officer of HAP in March 2004.

“Fran’s contributions to HAP as well as to health care in this region have been significant,” says Nancy Schlichting, president and CEO of Henry Ford Health System. HAP is a subsidiary of Henry Ford Health System.

“Over the years, her expertise and knowledge was valued by all those in health care in Southeast Michigan. She was the leading force behind HAP’s successful growth, always bringing quality and value to corporate customers and members,” says Schlichting. “She will be greatly missed.”

Parker is a champion for community involvement. Credited as the force behind HAP’s award-winning community service program, Parker led volunteer recruitment efforts for several non-profit agencies, including Core City Neighborhood, Alternatives for Girls and the City of Detroit’s Angel’s Night. She serves as a board trustee for numerous organizations.

Patricia Richards, HAP’s chief operating officer, has been named interim CEO. A national search for a permanent CEO will begin later this month.

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Legislative Lineup Lengthens

Detroit Receiving Hospital’s Vice President of Medical Affairs Michael Stellini, MD, has been appointed to the State of Michigan’s Advisory Committee on Pain and Symptom Management (ACPSM).

ACPSM consists of representatives from several health professional boards and was originally established under the occupational regulation sections of the Michigan Public Health Code, P.A. 421 of 1998. The Committee’s goal is to address issues pertaining to pain and symptom management, and then make improvement recommendations to the state legislature.

Dr. Stellini earned his undergraduate degree from the University of Michigan, Ann Arbor; graduate degree from Michigan State University, East Lansing and his doctor of medicine degree from Wayne State University, Detroit, Michigan. He trained at Cambridge Hospital, at Harvard University, in Cambridge, Massachusetts.

Dr. Stellini has served as Receiving’s vice president of medical affairs since 2005 and has been an associate professor at the Wayne State University School of Medicine since 1997. He is also the medical director of DRH’s Palliative Care Service, and hospice medical director for the Barbara Ann Karmanos Cancer Institute.

“This committee serves an important role in helping to direct the state of Michigan’s policies on pain and symptom management,” stated Dr. Stellini. “As a physician, I am pleased to be a member of this committee because it is totally dedicated to patient care at a time when it is needed most.”

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