A bitter dispute between the University of Utah and a group of physicians peaked Thursday with the contentious collapse of negotiations to sell a Park City clinic back to the doctors.
After nine physicians at the Park City Family Health Center answered an asking price of $1.88 million with a counteroffer of $200,000, the U. announced in a press release that negotiations "have concluded without any agreement on the proposed purchase of the practice by the physicians."
"The University of Utah is disappointed that the physicians chose to discontinue their long-term relationship with the university," said A. Lorris Betz, senior vice president for health sciences, dean of the medical school and CEO of the University of Utah Health Network, the organization that runs the family health center at 1665 Bonanza Drive and the Summit Health Center, 1750 W. Sun Peak Drive, in Park City.
The U. announced Dr. Chuck Hodges of Park City will assume management responsibility at the family health center.
"We want to assure our patients that there will be a smooth transition with the help of Dr. Hodges, and we will ensure continuity of care. We intend to continue our support and commitment to these communities and their health-care needs," Betz said.
The announcement brought a sharp reaction from the physicians, several of whom have worked at the clinic since it opened in 1978 — and around whom a vocal Park City contingent rallied for their continuing in the practice.
"Right now the physicians are just overwhelmed and stunned," said Elizabeth Marlin. "Their press release is full of inaccuracies and half-truths. Our first reaction is anger, but we want to sit down over the weekend and give everyone a chance to go over what they've said.
"We want to tell our story fully, because much of it hasn't come out — and we will. But we want to tell it as professionally and ethically as possible.
"The university is a very powerful organization, and we're just doctors trying to do our jobs. But our power is in the truth. There are blatant lies in all this, and we will address them all."
"They shouldn't be stunned at this conclusion. It's a direct result of all the actions they've taken during negotiations," said Fred Esplin, U. spokesman.
In its release, the university said it was addressing "misinformation and blatant misrepresentations of the facts regarding the dispute" and "well-orchestrated public relations campaigns designed to direct attention away from the PCFHC physicians' personal decisions regarding their practice in Summit and Wasatch counties."
Nothing is more contentious than whether the doctors quit the U. health network or were being forced out when their contracts ended on June 30.
"The fact of the matter is, none of us made a personal choice, because none of us has ever been offered a contract, including those of us who applied," said Marlin, a three-year doctor at the clinic, who added she was one of four among the nine doctors interviewed for a new contract.
"We fundamentally disagree," Esplin said. "Each doctor indeed had ample opportunity to work at the clinic under a new contract. It was their decision not to. We are clear and unequivocal about that."
"Our preferred option would have been for the doctors to continue their relationship with us That's basically what we've spent all the time since December trying to do," said Steve Mersereau, U. health network director of business development.
As to the disparity over the price of the practice, the university said it based its $1.88 million bid on a valuation analysis by a national consulting firm "as requested by the physicians."
The doctors say the price has more than doubled during the negotiations. They said their own independent analysis led them to enter a bid based mostly on "hard assets."
"Given the limited time we had to negotiate, we had hoped by making an offer we could on-go the discussions while we gathered all the needed information," Marlin said.
The time constraints were necessary to ensure the clinic was staffed if the nine physicians left, the university said.
"It's crucial to understand this was not some cockamamie time frame plucked out of the air," Esplin said. "It was vital to make sure we had physicians at the clinic to provide medical services to the people of Summit County."