University Medical Resident Services, P.C. - Page 7

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               * * * [UDRS] have been established to provide for that                   
               respective direct employment of the medical and dental                   
               residents and fellows.                                                   
               The Consolidation Contract allocates responsibility among                
          the Schools, the hospitals, the Consortium, and petitioners.  It              
          provides that, commencing July 1, 1991, all residents enrolled in             
          academic medical programs administered by the Consortium “shall               
          become employed by” UMRS, and all residents enrolled in academic              
          dental programs administered by the Consortium “shall become                  
          employed by” UDRS.  It further provides that the affiliated                   
          teaching hospitals would contract with petitioners for the                    
          provision of residents.  Petitioners serve only the Schools and               
          the affiliated teaching hospitals, each of which is a tax-exempt              
          organization qualified under section 501(c)(3).                               
               Under the Consolidation Contract, the Schools and the                    
          hospitals follow specific procedures with respect to the                      
          allocation of residents.  The program directors at each of the                
          teaching hospitals project their hospital's needs for residents               
          and communicate that estimate to the Consortium.  Applicants for              
          residency positions submit an application to the Consortium.  The             
          Schools, the Consortium, and the teaching hospitals then select               
          residents to meet each hospital's needs and communicate that                  
          selection to UMRS (in the case of medical residents) or UDRS (in              
          the case of dental residents).  Thereafter, a certificate of                  
          residency is issued by the Consortium, and the resident is                    

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Last modified: May 25, 2011