Focusing on Clinical Practice Plan Needs

Medical School Physicians lead complex internal and external relationships

Managing a faculty practice plan that grows ever more complex has led to a realignment of responsibilities at The University Texas Medical School at Houston.

Michael Bungo, M.D.

Richard Andrassy, M.D.

Michael Bungo, M.D., has been appointed vice dean for clinical affairs, a new full-time position that allows the Medical School to consolidate and focus administrative leadership at its two primary teaching hospitals, Memorial Hermann – Texas Medical Center and LBJ General Hospital. He now serves as CEO of UT Physicians.

Richard Andrassy, M.D., remains associate dean for clinical affairs and will work with clinical faculty to identify and solve problems and serve as a liaison to the leadership of the organization. Andrassy, who holds the Denton A. Cooley, M.D., Chair in Surgery, also continues as chairman of the board of UT Physicians and chairman of the Department of Surgery.

Both report to the dean of the Medical School, Stanley Schultz, M.D. The changes were announced by Schultz and Michael McKinney, M.D., senior executive vice president and chief operating officer for the UT Health Science Center at Houston.

The practice plan is an integral part of the health science center, McKinney said. Through clinical care, it provides an important community service and a setting that helps to train the next generation of physicians.

The practice is also a big business, and Andrassy, as chair of one of the largest departments in the Medical School, already has a very demanding job.

“Dr. Andrassy is still the primary interface with the clinical faculty,” McKinney said. “He’s really good at that.”

Andrassy serves as a point person in the relationship between clinical faculty and administration. “As a surgeon and longtime leader, I think the physicians look up to him,” said Kevin Dillon, executive vice president for finance and administration. “They respect him.”

The increasing complexity of the clinical practice, especially in relation to the external environment, has prompted the reorganization of clinical leadership, Schultz said in announcing Bungo’s appointment. “The complexity extends to relationships with our clinical affiliates, compliance requirements, and never-ending financial pressures.”

Bungo assumes a primary role in interactions with Memorial Hermann Hospital, the largest clinical contract for the practice plan, and he continues in that role with the Harris County Hospital District.

“Dr. Bungo’s experience working with a hospital district is going to be valuable,” Dillon said. “The relationships with an academic teaching hospital in 2006 are very complicated. They require a lot of time and ongoing communication and discussion about programs and graduate medical education.”

Bungo emphasized that the Medical School’s strong ties with Memorial Hermann “have enriched the stature of the Medical School in education, research and clinical care.” He said, “I believe we must solidify our vision as to how we perceive and how we wish to operate our clinical enterprise. There must be a unity of purpose and commitment as we accept the new opportunities and realities of the future.”

Andrassy said he looks forward to Bungo’s help in coordinating group practice activities. “Our newly restructured leadership team should be able to deal with practice plan issues on a more timely schedule,” he said.

Physician-Led Practice
Practicing physicians are in key leadership roles for the faculty practice plan at The University of Texas Medical School at Houston. Reporting to the dean of the Medical School, Michael Bungo, M.D., vice dean for clinical affairs, chairs the Group Practice Leadership Committee. Richard Andrassy, M.D., associate dean for clinical affairs, is vice chair. Seventeen of the 22 members are clinical department chairs. “The committee is the primary point where issues of the day are considered – with the hospital, with billing and collecting, with managed care contracting, with compensation of physicians, with incentive plans; it’s really clinical operations,” said Kevin Dillon, executive vice president for finance and administration of the UT Health Science Center at Houston. “It’s important to have physicians who are in there seeing patients several days a week also providing these key leadership roles.” Providing oversight to that large committee is the smaller Executive Group Practice Leadership Committee, chaired by Michael McKinney, M.D. Members are Medical School Dean Stanley Schultz, M.D., Bungo, Andrassy and Dillon. Other committees that report to the Group Practice Leadership Committee also are headed by physicians. For the complete list, see http://public.affairs.uth.tmc.edu/distinctions/archive/ 2006/February/ Physician_Practice.html.
What Is UT Physicians?
For an appointment at a UT Physicians Clinic, see http://www.utdocs.com or call 1-888-4UT-DOCS (1-888-488-3627). UT Physicians is a certified nonprofit health corporation that functions as the business and administrative arm of the medical faculty practice plan for The University of Texas Health Science Center at Houston. The corporation operates the clinics, oversees billing and collection operations, credentials physicians, and negotiates managed care contracts. Leading UT Physicians is a board that reports to Health Science Center President James T. Willerson, M.D., and is chaired by Richard Andrassy, M.D., associate dean for clinical affairs at the UT Medical School at Houston. All members of the board are Medical School department chairmen. Reporting to the UT Physicians Board is CEO Michael Bungo, M.D., vice dean for clinical affairs. For more details, see http://public.affairs.uth.tmc.edu/distinctions /archive/2006/February/UTPhysicians.html.
Practice Plan Primer in Finance
Money Comes From – For Fiscal Year 2006 the faculty practice plan budget consists of $108 million in professional fee revenue and $84.5 million in contractual revenue. Total operating revenue budget is $195 million. Money Goes To – This is budgeted to be spent as follows: $109 million in faculty salaries and benefits; $25 million in other salaries and benefits; $25 million in clinic and clinic-related costs; $30 million in maintenance and operations; and approximately $6 million per year for research, educational and institutional administrative support.

By Ina Fried, Public Affairs