This week, our teams were joined by Paul Castillo, Chief Financial Officer of Michigan Medicine and Dr. David Spahlinger, President, University of Michigan Health System, as a well as a mediator from the Michigan Employee Relations Commission (“MERC”) . We are grateful to both Dr. Spahlinger and Paul for sharing their time with the groups, answering key questions and providing critical insight on Michigan Medicine’s COVID-19 financial realities and context for the University bargaining team’s approach to the economic issues on the table.

Dr. Spahlinger and Paul expressed their appreciation for the opportunity to participate in the discussion and hear from House Officer representatives, as well as to share a more fulsome picture of the University’s financial challenges and recent announcements.

Both leaders affirmed the gravity of the financial situation – losing nearly $4 million per day due to lower volumes, its expected long-term impacts, and the University’s commitment to developing solutions that address our immediate needs, position us for a strong, sustainable future and ensure our ability to support our teams and fulfil our Mission moving forward.

Despite all these challenges, the University will continue to honor the compensation package offered to the union prior to COVID-19 that includes raises, an increase to their lump sum benefit, expanded parental leave benefits, new expense reimbursements, and more. Though the union has rejected this proposal, the University hopes that representatives will recognize the role all team members must play in the system’s path forward and respond to House Officer needs, while also protecting jobs throughout the enterprise and accelerating our recovery.

Mediation will continue with the MERC mediator on Monday, May 18 via teleconference.