THE JEWISH NEWS
UP FRONT
This Week's T o p Stories
Finding A Partner
020waramommpagm',.MWEnr •
Sinai's affiliation plans feed the rumor mill.
JILL DAVIDSON SKLAR STAFF WRITER
I
t is a small statement that
is posted in various loca-
tions at Sinai Hospital.
In fact, it is so benign in
appearance that not too
many people have really
noticed it for the three
years since its debut.
"Sinai and members of its med-
ical staff will participate in com-
prehensive regional health
systems," the vision statement
says in the second paragraph.
"Sinai will be a partner in an in-
tegrated physician hospital or-
ganization that facilitates a
unified approach to delivery of
services, participation in man-
aged care programs and direct
contracting."
"Sinai will continue to support
the independent practice of med-
icine as an integral component of
the health-care system," it con-
cludes.
So, why does fodder for the ru-
mor mill persist that the hospi-
tal is merging with a larger
hospital organization?
"It has been up since 1993,"
President and Chief Executive
Officer Phillip Schaengold said of
the vision statement. "Maybe
some [people] didn't read it."
Perhaps some didn't, but they
sure are taking notice now.
Talk of a merger has focused
not so much on the "if' or the
"when" of the issue but rather the
"who." Speculation in the med-
ical community has intensified in
the past few weeks regarding the
potential partners courting Sinai.
Some of the rumors speak of a de-
finitive link between Sinai and
either Detroit Medical Center
(DMC) or Henry Ford Health
System, organizations that in the
past have attempted to link with
Michigan's only Jewish hospital.
To stifle the gossip, Mr.
Schaengold distributed a memo
two weeks ago addressing the is-
sue of a merger. While he admit-
ted there have been a "number of
inquiries," he underscored the po-
sition that no agreement has
been reached and no affiliation
alternative has been selected.
A spokesperson for the DMC
also acknowledged the rumors
but said there is little truth to
›----D them.
"It is not true. We are not
merging with anyone," said the
spokesperson. "We are talking to
a number of organizations, but
there is nothing pending with
Sinai."
The formal process toward af-
filiation began three years ago at
Sinai when a physician hospital
organization (PHO) was estab-
lished by doctors and the hospi-
tal to obtain managed health-care
contracts with many plans in
southeast Michigan.
Another step was taken when
the hospital's board of directors
appointed an oversight commit-
tee to identify affiliation possi-
bilities. In turn, the committee
also hired Cain Brothers, a New
York consulting
Phillip
firm, to evaluate Schaengold:
some of the candi No definitive
dates.
partner.
The next move
in the plan is for
the oversight com-
mittee to review
Cain's recom-
mendations; the
committee will
then present its se-
lection to the board
of directors.
One major con-
sideration will be
thepreservation of
the Jewish identi-
ty of the hospital.
Sinai, founded by
Jewish doctors de-
nied privileges at
other health-care
facilities in the
1950s, is the only
hospital in Michi-
gan to receive an
annual allocation
from the Allied
Jewish Campaign.
"Our commit-
ment to Sinai is
ongoing," said
Robert Aronson,
executive vice pres-
ident of the Jewish
Federation of Met-
ropolitan Detroit. "We make an
outright grant to Sinai as an an-
nual allocation.
"We hope our relationship will
continue," Mr. Aronson said.
Mr. Schaengold said the iden-
tity issue will be in the forefront
when choosing a future partner.
"We are not in any stage of dis-
cussion where we have gotten
-
into those details, but clearly it
would be in the interest of the
Sinai board of directors to main-
tain a Jewish identity," Mr.
Schaengold said.
The merger whispers follow
years of speculation about the fu-
ture of the hospital. In the mid-
1980s and early 1990s, the
hospital grappled with financial
losses, sometimes as high as
$750,000 a month.
Sinai officials looked at merg-
ing with DMC and Henry Ford;
teams representing each hospi-
tal group met to discuss details.
Doctors, however, balked at
the idea, fearing the larger hos-
pital groups would close Sinai in
an attempt to thin the field of in-
ner-city hospitals competing for
the same Medicaid dollars. The
t
ftirtg 'opeplak
i
tiftri
• "•;k,,,,,
PHOTO BY GLENN TRIEST
doctors pushed inpatient admis-
sions and increased efficiency in
an effort to preserve the hospi-
tal's independent status.
Talks first broke off with Hen-
ry Ford and later with DMC. This
was followed by the resignation
of Sinai CEO and President
Robert Steinberg.
PARTNER page 19
01-4fig,
rme
;
l Img
u lAgA
AtMliti7tr "
thei..cod
-- an ‘ :1 86.111r
a*I 4**
ent.
tally passed on to th e.eonsumer.74.,-iiatte
SEMCOO.;,.:, Iie Southeast Michigan Council cif Governments,
has projected a population increase in the northwest suburbs of
Oakland County- "But there will still be an excess number ofbeds,"
Mr. Horwitz said,
COURT page 19