Subject/Title:

 

Policy Number

5.07

Clinical Faculty Transition

Support Policy

Revised Date

3/13/12

 

Department

Administrative and Financial Services

Issued by:

Kathy Brooks, HCOM CFO

Approved by:

John A. Brose, D.O., Dean

 

 

 

 

 

PURPOSE:

The Ohio University Heritage College of Osteopathic Medicine may provide transitional support for new clinical faculty joining University Medical Associates Inc. (UMA) or current clinical faculty within UMA who have a significant status change (i.e., change in assignment, academic percentage, department, etc.) that affects clinical financial performance.  This support may include assistance in establishing new or changing clinical practices by providing a clinical faculty practice start-up salary guarantee and assistance to UMA cost centers with operating expense support during clinical faculty vacancies.  Requests for transitional support are approved at the Dean’s discretion.

 

POLICY:

Clinical Faculty Salary Guarantee

 

Newly hired Group 1 or 2 clinical faculty members joining a clinical practice in UMA or current UMA faculty with a significant status change may be provided up to a two (consecutive) year clinical salary start-up guarantee (if not otherwise guaranteed by another entity) to begin on the UMA clinical practice hire date (or date of significant status change).  The clinical salary guarantee will be in effect during the agreed upon period as long as the physician is clinically active within UMA for the agreed upon clinical/academic percentage and meet appropriate clinical expectations set by the UMA CEO and UMA Cost Center Director. 

 

If a physician under a guarantee must be on leave for an extended period, a request for an extension of the guarantee must be submitted to the Dean in writing.  Dependent on circumstances, the guarantee may or may not be paid during the leave period. 

 

The total compensation will be determined by using current Medical Group Management Association (MGMA) average salary data, current UMA physician salaries, and industry standards for the appropriate clinical specialty.  The clinical salary guarantee will be equal to the total compensation less the OU-HCOM academic salary.  Note that total compensation for each year of guarantee will remain the same.  The clinical salary guarantee will adjust with any change in the academic salary.

 

            (Total Compensation – Academic Salary = Clinical Salary Start-Up Guarantee)

 

If after the guarantee period, the physician’s net clinical revenue (clinical revenue less clinical expenses) is calculated at a deficit, the deficit up to a maximum of the annual clinical salary guarantee plus associated benefits) will be paid by OU-HCOM to the UMA cost center.

  

Example:

 

Total Compensation

     $100,000

 

Less OU-HCOM academic salary

       $40,000

 

Clinical salary start-up guarantee

     $60,000

    

 

 

 

Total Clinical revenue

     $110,000

 

Total Clinical expenses (including physician salary/benefits)

     $160,000

 

Net Clinical Revenue (deficit)

   ($40,000)

  

OU-HCOM to pay UMA cost center (up to $60,000 plus associated benefits

    

             $40,000

 

 

NOTE:

Clinical faculty with clinical practices outside of UMA will NOT be eligible for clinical salary guarantees.

 

UMA Cost Center Transition Support

 

In the event a Group I or Group II physician faculty vacancy creates a hardship to the UMA cost center, the cost center director may apply to the Dean for clinical transition financial support.  This support is to cover the departed faculty member’s share of staffing and rental expenses.  Appropriate documents/reports must be included in the application to verify expenses.  It is expected that the cost center will take specific steps to decrease expenses during the transitional period.

 

Approval of a request is at the Dean’s discretion and his/her decision is final.  If approved, the clinical transition guarantee can be in place for up to 180 days.  If at the end of the 180 days the position continues to be vacant, the cost center would need to apply for an extension (not to exceed 90 days per extension).

 

Protocol for Requesting Transition Support

 

Protocol for requesting transition expense assistance is as follow:

The UMA cost center director* should work with the UMA Controller and/or CEO to: 

  1. Discuss anticipated shortfalls in revenue that will create financial hardship to the cost center and its ability to meet expenses;

  2. Discuss strategies to reduce current expenses to offset anticipated loss of revenue; and

  3. Discuss plan to replace vacating physician clinic time, in both the short term and long term.

*In case of financial hardship of a budget center, the budget center should work through these steps while keeping the cost center director informed.  The cost center director should support the request.  If not, the request may still be processed but with the cost center director’s written explanation for nonsupport.

 

After the discussions with the UMA Controller and/or CEO have taken place and it is determined that there is a need to request transition assistance from OU-HCOM, the cost center director may submit a written proposal to the Dean and HCOM Chief Financial Officer.  This proposal should include the following information:

  1. Brief synopsis of situation;

  2. Strategies, if applicable,  for  reducing current expenses to offset anticipated loss of revenue;

  3. Short term plan to replace a portion of vacating physician clinic time in the  interim before filling a position;

  4. Long term plan for either replacing vacating physician clinic time or, if not replacing physician, and corresponding plan to reduce expenses;

  5. Dollar amount of transition assistance requested; and

  6. Duration of transition assistance coverage

Last updated: 04/11/2012