Compensation Plan 2003-2004

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Compensation Plan2003-2004
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Key Points

• Increase compensation to productive faculty
• Maintain balanced budget
• Compensation to be recalculated every 6 months

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Components of Compensation

• Utilize community standards as benchmarks for
  clinical compensation
• Distribute GME to faculty in proportion to
  graduate teaching
• Distribute EG to divisions in proportion to
  undergraduate teaching
• Credit Research at 100 and Administration/COSA
  at 50

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Adjustments

• Total compensation to increase or decrease by
  20,000 or 20, whichever is lower
• Utilization of discretionary funds by Department
  Chair to recognize limitations of plan and to
  ameliorate decreases in compensation

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Success of New Plan

• Total compensation to faculty increased by 6!
• Distribution of Changes (81 faculty)
• Increases 70
• No change 21
• Decreases 9

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First Phase of Many

• Must identify ways of increasing revenue and
  decreasing expenses if Compensation Plan to
  continue
• Discussions with Division Chiefs on how
  individual faculty might increase compensation
  through increased clinical productivity, research
  or administrative support

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Total Clinical

• Total Clinical comprised of two components
• Clinical Component
• GME Credit
• Target Clinical 85 of Total Clinical

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Clinical Component

• Identify median /WRVU for specialty using MGMA
  benchmark
• Deduct cost of VCU benefits and Mid-Level
  Providers, Fellows
• Multiple by 62
• Median for DOIM 20.06/WRVU

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GME Credit

• Allocated on a WRVU basis
• Total amount (1,619,747) divided by total WRVUs
  in DOIM (207,408)
• Therefore 7.81/WRVU

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Total Clinical and Target Clinical

• Total Clinical GME credit Clinical Component
• Target Clinical 85 of Total Clinical
• 15 withhold for Department Chair discretionary
  fund and balanced budget
• Target Clinical is used for compensation

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Research Credit

• Salary support from grants credited at 100
• Grants scheduled to start after July 1, 2003 will
  be credited at next 6 month review

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EG Credit

• EG funds allocated to divisions based on
  established amount of undergraduate teaching
• Division EG allocations distributed to division
  faculty based on rank

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Administration/COSA Credit Chair Discretionary
Credit

• Administration/COSA credited at 50
• In limited number of cases Department Chair
  Discretionary funds used to adjust for
  limitations of plan or to ameliorate decreases
• Ameliorations of decreases are one-time events
  only, and will slowly be phased out

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EXAMPLE CLINICAL
WRVUs GME Credit Clinical Credit Target Clinical
Faculty A 3000 23,430 60,000 62,416

Faculty B 5000 39,050 100,000 118,193

Faculty C 4000 31,240 80,000 103,054


GME Credit Clinical Credit
7.81/WRVU 20,00/WRVU
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EXAMPLE NON-CLINICAL
Research Credit EG Credit COSA Credit DOIM Disc. VA Total Non-Clinical
Faculty A 40,000 29,000 - 5,000 - 74,000

Faculty B - 33,000 20,000 - 53,000

Faculty C - 23,000 7,500 - 30,500
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EXAMPLE RECOMMENDED COMPENSATION
FY04 Comp. FY03 Comp. variance 04 to 03 variance 04 to 03 Max. Change 20 or 20K Recommended Total Comp. FY04
Faculty A 136,416 150,000 (13,584) -9 (13,584) 136,416

Faculty B 171,193 120,000 51,193 42 20,000 140,000

Faculty C 133,554 125,000 8,554 7 8,554 133,554
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Summary

• Total compensation to faculty increased by 6
• Compensation based on clinical effort, research
  support, teaching credit, and administrative
  support
• Efforts underway to ensure long-term viability of
  plan and balanced budget