Carilion Health reorg faces strong MD resistance

Roanoke-based non-profit Carilion Health System is facing significant resistance from doctors as execs move ahead with plans to substantially reorganize operations. The non-profit currently runs eight hospitals, as well as Carilion Medical Group, a 200-clinician practice with 70 offices. Despite creating a system-wide EMR and instituting other initiatives to coordinate care, the health system model isn't working effectively, according Carilion's CEO, Dr. Edward Murphy. He and his board plan to reorganize Carilion into a new entity known as Carilion Clinic. The new clinic, which Murphy is modeling on the Cleveland, Lahey and Mayo Clinic models, will be managed by a new Board of Governors dominated by physicians. Carilion expects to spend about $100 million on the reorg, which will emphasize patient care, medical research and teaching. Carilion will use the funds to build a new clinic facility and hire high-profile specialists to lead key clinical departments. The prestige specialists should attract out-of-area patients, building Carilion's business, the hospital said.

Murphy is running into stiff resistance from some of its physicians, however, who say that the changes could interfere substantially with patient care. In fact, one group of physicians is so concerned that they've pulled together $50,000 to fight the proposed changes, and have already used part of that to hire a PR consultant, according to The Roanoke Times. Not surprisingly, however, Murphy is staying in talks with the doctors who remain skeptical. And he should have time to bring skeptics over to his side. While planning should begin by summer 2007, it will take five years or more to implement this model, executives predict.

To Learn about the Carilion reorg and physician responses:
- check out Carilion's statement
- read this article in The Roanoke Times

PLUS: Murphy's $1.7 million annual pay near the top of non-profit provider salary lists. Article

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