ECU, Vidant sign agreement to merge medical practices
Vidant Health and East Carolina University signed an agreement this afternoon that would bring ECU Physicians under the Vidant umbrella.
The physicians group will be integrated with the hospital's physician group, Vidant Medical Group.
The new company's board, called VECU, will be chaired by the medical school dean, while Vidant will appoint six members and ECU five. A news release says all financial risk lies with Vidant.
The hospital system will initially make a $35 million payment to ECU, and then $14.25 million annually to the medical school for the next 30 years.
Both the university and Vidant believe the new entity will be better able to respond to the changing health care environment.
ECU Physicians has more than 350 physicians, and many more workers who are state employees. While doctors would remain employees of the medical school, other workers would be given the option to join the new company or remain state employees for a defined period "to reach certain state retirement and benefit milestones."
Vidant Health and East Carolina University sign agreement to integrate physician practices
GREENVILLE, N.C. – East Carolina University (ECU) and Vidant Health today announced the signing of a formal agreement to integrate ECU Physicians, the clinical practice of The Brody School of Medicine at ECU, with Vidant Medical Group, Vidant’s multi-specialty physician group subsidiary into the new entity created last year.
The new organization will focus on creating innovative systems and processes that reduce the cost for patients, increase access to new therapies and technologies, reduce the impact of chronic disease in the area and expand the training sites available for medical students. Another goal is to increase the opportunity for clinical trials that benefit rural areas. The combined expertise from the two organizations brings the medical research capabilities and faculty expertise unique to ECU together with specialized clinical expertise and operational capabilities at Vidant Health in all of the communities it serves.
The announcement comes after months of collaboration and work by the two entities. The terms of the agreement meet the parameters set forth by the University of North Carolina Board of Governors.
“The hard work and commitment of generations of leaders, combined with the visionary thinking and persistence of so many who serve this area today has borne fruit,” said ECU Chancellor Cecil Staton. “This is an agreement forged from one idea, that together we can create a better way to deliver health care to even the most rural areas of eastern North Carolina. The combination of skills from both organizations into one new entity flows naturally from a longstanding partnership. It also mirrors similar developments at other health care institutions across the country in response to significant changes in the health care landscape.”
“We have set ambitious goals to coordinate access, education, research and clinical trials that further enhance the missions of these two acclaimed organizations,” said Vidant Chief Executive Officer Dr. Michael Waldrum. “Our shared vision is to be the national model for rural health and wellness by creating a premier, trusted academic delivery system for the benefit of the people of eastern North Carolina.”
Both ECU and Vidant believe the new clinically-integrated entity will be better able—through its combined expertise—to respond to the changing health care environment.
“Health care across the country is experiencing incredible change, and with that change comes a lot of uncertainty. Regardless of what happens on the national landscape, we are better positioned to care for patients, their families and the communities we serve if we do this important work together,” said Waldrum. “The mission of both organizations, and the mission of the newly formed integrated physician entity, is about rural health care leadership, and we believe today’s announcement is a major step forward in ensuring we provide the very best care at the most affordable price.”
The new company's board, chaired by the dean of the medical school, includes six members appointed by Vidant and five by ECU. While financial risk and responsibility for the new entity rest with Vidant, the new entity is legally structured to operate in support of the mission of Brody School of Medicine. The medical school’s relationship with the UNC System and the state of North Carolina remains unchanged.
As part of the agreement, Vidant will make an initial $35 million payment to ECU and an annual $14.25 million mission support payment to Brody School of Medicine for the next 30 years. The new organization is expected to begin operations in 2018.