The University of Michigan Medical School Faculty Group Practice (FGP) was created on the premise that an integrated, coordinated, high-quality, cost-effective, multi-specialty organization was needed to preserve the patient care, educational and research missions of the University of Michigan Health System.

In July 1996, the University of Michigan Medical School officially launched the Faculty Group Practice by combining 15 clinical departments into one multispecialty group practice. The FGP thus replaced the separate Medical Service Plan (MSP) agreements that had been in place for each clinical department since 1973. By 2001, four new departments had been established within the Medical School , and thus the FGP is now comprised of 19 clinical departments. All faculty who are directly involved in patient care are automatically members of the FGP.

Members of the FGP are represented by a 15-physician Board of Directors, chaired by the Dean of the Medical School and comprised of elected and appointed members. The FGP Board meets monthly to determine policy and act on issues related to patient care, contracting, financial planning, strategic planning, and professional billing. Several committees provide recommendations and advice to the Board, and the Administrative Office provides support for Board activities. Members of the FGP are kept informed via frequent e-mails in the form of FGP Grams.

The 1,400 members of the FGP have appointments at the University of Michigan Medical School, are employed by the University of Michigan, and practice medicine primarily at the University of Michigan Hospitals and Health Centers. They treat over 1,300,000 patients annually in the three hospitals and 150 outpatient clinics. Most of them are involved in teaching the University's 800 resident physicians and 700 medical students, and many conduct basic or clinical research.