The nation's largest union of attending physicians said it will form a not-for-profit physician corporation to compete for medical-service contracts awarded by New York City Health and Hospitals Corp.
Barry Liebowitz, M.D., president of the 3,000-member Doctors Council, said the new professional corporation will attempt to help solve HHC's financial difficulties by offering better, more cost-effective patient care than the public healthcare system's existing contractors.
HHC spends more than $500 million annually on contracts to supplement in-house medical staffing services, but a lack of oversight and accountability has cost it millions in fraud and abuse. Currently, it is renegotiating contracts for services at six hospitals.
HHC notified union representatives last week that it will lay off 1,600 union employees, including 235 full-and part-time physicians and dentists who are represented by the Doctors Council. A spokeswoman for the union said the new professional corporation has been under development and isn't a reaction to the layoffs.