Beckers Hospital Review: Physician Group With 873 Employees Files For Bankruptcy
Troy, Mich.-based University Physician Group, which does business as Wayne State University Physician Group, filed for Chapter 11 bankruptcy Nov. 7.
"UPG has determined that its clinical operations are no longer sustainable in the absence of long-term external subsidy," University Physician Group CEO Charles J. Shanley, MD, said in bankruptcy documents.
Dr. Shanley said several factors contributed to the group's weakened financial state, including declines in operational and revenue cycle performance.
"Perhaps most importantly, during a decade of steadily declining clinical revenue, UPG maintained an expansive and underutilized long-term leasehold portfolio distributed throughout metropolitan Detroit to support the missions of several of the smaller clinical departments in the context of a deteriorating relationship with one of UPG's affiliated hospitals," he said. "Occupancy and overhead expenses required to maintain these underperforming assets became a pernicious tax on the organization that is no longer sustainable at current volumes."