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FACULTY COMPENSATION IN AN ACADEMIC RADIOLOGY DEPARTMENT: A CASE STUDY

FACULTY COMPENSATION IN AN ACADEMIC RADIOLOGY DEPARTMENT: A CASE STUDY. Margaret Birrenkott, MBA University of Wisconsin Medical School Madison, Wisconsin. RESULTS OF COMPENSATION SURVEY . 28 respondents 75% have formalized comp plans

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FACULTY COMPENSATION IN AN ACADEMIC RADIOLOGY DEPARTMENT: A CASE STUDY

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  1. FACULTY COMPENSATIONIN AN ACADEMIC RADIOLOGY DEPARTMENT:A CASE STUDY Margaret Birrenkott, MBA University of Wisconsin Medical School Madison, Wisconsin

  2. RESULTS OF COMPENSATION SURVEY • 28 respondents • 75% have formalized comp plans • 57% use RVUs as a component of the comp plan; 43% have no formal clinical productivity measures. • 43% measure academic productivity as a basis for distributing incentive; 57% have no formal academic productivity measures. • 25% allocate comp based on chair discretion

  3. DEFINITION OF TERMS • “INCENTIVE” = productivity-based measure of work for which radiologist is compensated. • “BONUS” = Additional salary paid out to radiologists based on revenue in excess of expenses (including ‘regular’ comp) • “COMPENSATION” = Salary paid out exclusive of fringe benefits but including retirement.

  4. COMPENSATION FUNDING SOURCES • Clinical Revenues 87% • Hospital (GME) 5% • Medical School (MAMA) 6% • Research Grants 2%

  5. UW RADIOLOGY COMPENSATION PLAN • COMPONENTS: • Clinical • 10% pool for call pay (‘Call Merit’) • 70% equally shared with some disparity for rank and years of service in dept (‘Clinical Base’) • 10% based on total RVUs (‘Clinical Incentive’)

  6. UW RADIOLOGY COMPENSATION PLAN • COMPONENTS: • Academic • University base salary allocated for research and teaching activities • 10% from clinical revenues awarded based on a point system (academic RVUs) for academic activities (‘Academic Incentive’)

  7. HOW IS $$ ALLOCATED? • CALL MERIT • Distributed first before other pools allocated • Provided only to IVR and community sections • Allocation based on frequency and intensity of call

  8. HOW IS $$ ALLOCATED? • CLINICAL BASE • Largest pool distributed equally regardless of rank, track or productivity • +$5,000 increase for every rank greater than Assistant Professor • +$1,000 for every year of service at UW Radiology Example: Associate Professor w/10 yr UW exp: $150,000 + $5,000 + $10,000 = $165,000

  9. HOW IS $$ ALLOCATED? • CLINICAL INCENTIVE • Take faculty RVUs for previous 12 months clinical work • Dollars distributed via a 1:1 ratio (every RVU awarded = $$$) • Plain film (including dx mammo) adjustment of 1.35

  10. HOW IS $$ ALLOCATED? • CLINICAL INCENTIVE EXAMPLE: • $1,000,000 in pool/385,000 total dept clinical RVUs = $2.60 per RVU • Radiologist generated 10,000 RVUs (including plain film adjustment) • Clinical incentive = $2.60 x 10,000 = $26,000

  11. HOW IS $$ ALLOCATED? • ACADEMIC • UW base salary from medical school allocation of funds for grantsmanship, teaching, academic administration • Academic incentive allocated based on internal ‘RVUs’ • Administrative work for dept, UW, hosp, UWMF • Presentations/publications • Funded grants/grant applications • Teaching awards

  12. HOW IS $$ ALLOCATED? • ACADEMIC INCENTIVE EXAMPLE • MD completes Faculty Assessment Form to self report academic production • FAFs reviewed and scored by dept committee • Points totaled and MD placed in ‘tier’ • 1-250 $9,500 • 251-500 $12,500 • 501-750 $15,500 • Etc. • Size of merit per tier determined by amount of $$ in pool • Everyone participates

  13. HOW IS $$ ALLOCATED? • TOTAL SALARY IS SUM OF: • Call Merit (if appropriate) • Clinical Base Subject to • Clinical Incentive 5% withhold • Academic Incentive • Academic Base • Bonus if revenues allow; distributed evenly • Withhold returned at year-end if revenues allow

  14. MANAGEMENT OF PLAN • Chair has small discretionary fund to ‘tweak’ salaries as needed • Department Finance Committee meets regularly and reviews budgetary and staffing needs to ‘right-size’ sections • Grieve through Dept Finance Committee; if unresolved, appeal to chair and ultimately to practice plan Comp Development Committee

  15. MANAGEMENT OF PLAN • Educate, educate, educate! • Town hall meetings prior to plan implementation • Section meetings to explain changes • Present simulations to show impact • Presentation of plan components at faculty meetings • Chair/administrator one-on-one meetings with faculty

  16. CHALLENGES AND LESSONS LEARNED • Equalizing plain film RVUs vs. CT/MRI and IVR. Fairest method?? • Switched to a 1:1 ratio vs. using internal dept target for ‘simpler’ clinical incentive. • How should academic productivity be valued? Who determines academic RVUs? • Reward intensity and frequency of call. • Give sections flexibility to allow redistribution among section members.

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