De-Coding Components of Faculty Compensation January 29, 2015. Kyle L. Sharp, MHA, FACHE Interim...
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De-Coding Components of Faculty Compensation January 29, 2015. Kyle L. Sharp, MHA, FACHE Interim Associate VP and Executive Director, OSU Faculty Group
De-Coding Components of Faculty Compensation January 29, 2015.
Kyle L. Sharp, MHA, FACHE Interim Associate VP and Executive
Director, OSU Faculty Group Practice Chief Operating Officer, OSU
Faculty Group Practice Associate Executive Director, Specialty Care
Network
Slide 2
Agenda 2 Elements of Faculty Compensation Examples FGP
Benchmarks
Slide 3
Elements of Academic Medical Center Faculty Compensation 3 Your
individual allocation toward these initiatives is driven from time
assignment Academic Administrative Consulting Research Teaching
Clinical Administrative Clinical Contract Teaching
Slide 4
FGP Benchmarks Used 4 Salary benchmarks for clinical
departments segregated by academic rank Association of American
Medical Colleges University Health Consortium Productivity
benchmarks (wRVUs) by specialty/sub- specialty Organizational
Expectation 75 th Percentile Faculty Practice Solution Center
Slide 5
Current Standard Measurement of Production: Work Relative Value
Unit Time Pre-Service Intra-Service Face-to-Face Time (Evaluation
and Management Cut-to-Close Time (Surgical) Post-Surgical Intensity
Physical Effort and Skill Mental Effort and Judgment Stress and
Risk 5
Slide 6
Why wRVUs are Used as the Driver of Compensation Medicare uses
the RVU resources needed to complete the work as the driver to
determine the fees paid for the work Since payors reimburse the
Faculty Group Practice based on the Medicare framework, it is used
on the foundation to measure physician clinical productivity 6
Slide 7
Academic Salary Funding Sources Clinical Teaching Subsidy
Graduate Medical Education Support National Institutes of Health
and Other Research Awards o Private Foundation Grants, American
Cancer Society, March of Dimes, United Way, etc. Development Funds
Endowments, Specific Use, General Strategic Reserves Clinical
Subsidy 7
Slide 8
Clinical Salary Patient care revenue from faculty members
clinical work Contract revenue for clinical services (internal and
external) Each CPT code billed has associated wRVU value assigned
by Medicare (CMS) Dollar collected is not a dollar earned Billing
fees Deans tax Direct expenses Overhead Benefits University benefit
cost approximately double of community benefit rate 8
Slide 9
Compensation Example 9 Dr. Fixer-UpTotal FTE 1.0Proposed Salary
$100,000 Clinical FTE80%$80,000Provider wRVUs Academic
FTE20%$20,000Departmental Funds $100,000 Dr. Take-Care-Of-YouTotal
FTE 1.0Proposed Salary $100,000 Clinical FTE Billable 20% Contract
20% Admin 20% 60%$60,000 Funding Source wRVUs External Contract
Medical Directorship Academic FTE Research 20% Academic/Teaching
20% 40%$40,000 $100,000