Faculty Compensation Models Society of Professors of Child

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Faculty Compensation ModelsSociety of
Professors of Child Adolescent PsychiatryApril
26, 2007
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Faculty Compensation Models

• Overview Terms common faculty compensation
  plans
• Naftel                   
•  
• North Shore University Hospital, Long Island
  Jewish Medical Center Plan                 
• Fornari                 
• Virginia Commonwealth Plan      
• Sood   
• Discussion

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• The ideal compensation plan for a division is one
  in which each faculty member is equally unhappy.

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Compensation Models

• Salary
• Productivity
• Hybrids- often home grown
• /- performance-based incentives
• /- tied to faculty evaluations

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SALARY COMPENSATION PLAN

• Fixed compensation for assigned duties
• Advantage Allows physicians to focus on assigned
  duties
• Disadvantage no focus on revenue.

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PRODUCTIVITYCOMPENSATION PLAN

• Compensation for work effort
• Charges
• Collections
• RVUs
• Other teaching, admin., research, etc.

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PRODUCTIVITY COMPENSATION PLAN

• Charges Collections
• Advantages pay is directly related to
  productivity people work hard for
• Disadvantages effort may be in areas less/not
  valued by the department or division (private
  practice)

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Relative Value Units (RVUs)

• 1992, Medicare established a resource-based
  relative value scale (RBRVS) for payment for
  physician services
• Payments for services determined by cost needed
  to provide the service.

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Relative Value Units (RVUs)

• 3 components of resource cost
• Physician work
• Practice expense
• Professional liability insurance

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Relative Value Units (RVUs)

• Description CPT Code RVUs
• Psych Interview 90801 2.80
• Pharm Mgmt 90862 0.95
• Psycho TX 90807 2.02
• Sub Hosp Day 99233 2.00

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Total Earned RVUsAcademic CA Psychiatry100
Clinical Activity2005 MGMA

• MEAN 25th MEDIAN 75th 90th
• 2390 687 2062 3641 4662

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PRODUCTIVITY COMPENSATION PLAN

• RVUs
• Advantage- Allows physicians to focus clinical
  activity not
• Disadvantage- No focus on revenue

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Measures of Performance

• Patient satisfaction
• Peer review
• Quality of care
• Quality of teaching
• Grants
• Publications
• Citizenship

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MISSION-BASED MANAGEMENT

• Allocate funds based on core mission and values
• Departments align to institutional expectations
  divisions align to department expectations
• Transparent allocation of funds
• Budget for each mission
• Link productivity and budget decisions

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UNC FACULTYCOMPENSATION PLAN

• Compensation Academic Base Component
  Productivity Component x Performance Evaluation
  Factor
• Use of revenue or relative value units to
  determine productivity targets
• Productivity measured for teaching, research,
  clinical, administrative, and service
• Tied to faculty performance plan and evaluations

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