UM Regents OK Michigan Health Corp. Plan

At their June 21, 2012 meeting, University of Michigan regents approved the fiscal 2013 business plan and budget for the Michigan Health Corporation. MHC is a nonprofit founded in 1996 that’s part of the UM Health System, with 12 subsidiaries that are operated as partnerships with other entities statewide. [.pdf of FY 2013 budget and business plan]

In fiscal 2013, MHC is projecting a net loss of $4,975,845, compared to a loss of $1,116,769 in fiscal 2012. Those figures incorporate costs for startup operations. If startup costs are excluded, MHC anticipates a $1,489,919 net gain in FY 2013, compared to a projected $2,335,033 gain in FY 2012.

One of the startup ventures being formed is called Paradigm, which is described in the MHC report as a new nonprofit membership corporation to assist physicians treating cancer patients. The Phoenix-based International Genomics Consortium owns a 6% stake in the entity. As part of approving the FY 2013 budget, regents also authorized an increase in the cap for MHC’s capital investment – from $30 million to $45 million. The increase will allow MHC to establish Paradigm with a $15 million investment.

This brief was filed from the Michigan Union Ballroom on the Ann Arbor campus, where regents held their June meeting.