Jack Sobel, MD, chairman of Detroit-based Wayne State University Physician Group, plans to present Detroit Medical Center's offer to acquire the group at its next board meeting, but has said it is not for sale, according to Crain's Detroit Business.
DMC CEO Joe Mullany sent a letter last Wednesday offering to buy the practice, officially named the University Physician Group, amid negotiations for an expired long-term clinical services contract between DMC and the medical school. The letter was shared with Crain's Wednesday afternoon, just prior to a presentation from Mr. Mullany at a town hall meeting, according to the report.
Mr. Mullany said he talked about the physician group's future relationship with DMC during the presentation and referenced the letter he sent to Dr. Sobel that included three options for the future: full employment, professional services agreement or joint venture, according to the report. He also said these options were previously discussed with Wayne State UPG board members last December, according to the report.
Dr. Sobel, who is also dean of the medical school, told Crain's he received the letter without prior discussion and it was not mentioned in contract negotiation sessions or the town hall presentation, according to the report. He said Wayne State officials are not frustrated with the negotiation talks, but he said "I was troubled and shocked to receive Joe's letter because that doesn't reflect our relations or how to move the transaction," according to the report.
"It was not our intention to in any way to sandbag or surprise Dean Sobel," Conrad Mallett Jr., DMC's chief administrative officer, told Crain's on Thursday. "There is no upside to that for us. The letter was delayed. I don't know why. I wish Sobel had read the letter earlier."
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