What is the FRP?

1. What is the FRP?

2. Faculty Remuneration Plan (FRP) • Each month, the DOM captures the year-to-date revenues and expenses that are directly attributable to each faculty member. They are summarized in the faculty member’s individual FRP. • On a quarterly basis, the Division allocates overhead expenses and revenue for roles within the Division to specific faculty members. The DOM subsequently publishes the quarterly FRP for faculty members to review. • Each faculty member’s FRP contains his/her individual revenues and expenses, which are categorized as “operating” or “non-operating.” Non-operating items include grants/gifts/awards that originate from other Departments as well as start-up/bridge funds (regardless of source). All other items are considered operating. The faculty member’s FRP also reflects totals for the Division and the DOM. • The FRP is used in conjunction with other, non-financial tools to measure faculty performance. It is submitted annually to the Dean’s office along with the DOM’s faculty salary adjustments and incentive requests.

3. How Do I Access My FRP? • Faculty members can access their individual FRP by logging into the ERS website: http://domerp1.eservices.virginia.edu/ibi_apps/bid-login?IBIWF_language=en& • Division Chiefs have access to the FRPs of all faculty members within the Division. • The DOM’s IT website contains a FAQ guide with instructions for accessing ERS and viewing the FRP: http://deptmedicine.eservices.virginia.edu/dom-ops/howtos/Phys%20IBI%20Sys%20HowTo%20CFR%20FRP3.pdf

4. Sample FRP – Page 1 (Revenue) Indigent care support (from prior yr settlement) Collections UVA Medical directorships Allotments negotiated with Medical Center SOM support & some start-up Includes expert testimony, non-UVA medical directorships Teaching dollars Indirects earned on grants Revenue offsets for endowed chairs, grants, & gifts Note: You can drill down on each row to obtain additional detail

5. HSF Collections Legal Unit Collections Other HSF Indigent Care A-2 Medical Center UME GME IFP Expert Testimony F&A Revenue OH Earned Salary Support-Grants Salary Support-Chair Salary Support-Other Department Commitments Division Support SOM Medical Center Other Where Do FRP Revenues Come From?

6. HSF HSF Collections – clinical revenue collected by HSF Legal Unit Collections – previously uncollected charges that have been collected by HSF after legal action Medical Center Support Indigent Care - distributed based on dollars/work relative value units (RVUs) generated from indigent patients A-2 – UVA Medical Center inpatient and outpatient medical directorships MOU – allotments negotiated under a memo of understanding with the Medical Center Types of Revenue on the FRP

7. Non-patient income Other Institutional Support – allocations for DOM administrative roles (“commitments”) or Division-supported roles Miscellaneous Revenue –includes non-UVA medical directorships and professional revenue from consulting arrangements, as well as clinical-related activity like managed care fees and clinical contracts Institutional Support State & A1 –contains allotments for SOM administrative roles (“IFP”) and UME & GME teaching UME & GME activity is assigned teaching RVUs (TRVUs) based on a formula that is developed to normalize various teaching activities around a single metric UME & GME teaching dollars are distributed based on the total number of TRVUs generated times the rate per RVU Types of Revenue on the FRP (cont.)

8. Institutional Support (cont.) State & A-1 (cont.) Examples of teaching activities (provided a student or resident is involved) include: attending on service, attending on consult service, outpatient clinics, performing a lecture, Grand Rounds, serving as a mentor, teaching in Practice of Medicine (POM) Overhead Earned – facilities and administrative (F&A) grant revenue distributed to Principal Investigators Visit http://www.virginia.edu/finance/finanalysis/overhead.html for additional information about F&A revenue and how distributions are calculated Offsets Holding Area - revenue offsets for endowed chairs, research salary support, and non-DOM/SOM support Types of Revenue on the FRP (cont.)

9. Sample FRP – Page 2 (Expenses) Fees automatically calculated based on clinical revenue collected Faculty salaries and FB include both UVA and HSF pay Facility fees Premium calculated by Piedmont Liability Trust Tax based on salary & clinical collections Note: You can drill down on each row to obtain additional detail

10. HSF Fees Salaries Fringe Benefits Facility Fee Expenses Malpractice Insurance DOM Tax Transcription Division Support Staff and Other Costs (“Overhead”) Expense Commitments What Expenses Do FRP Revenues Cover?

11. Collection Based Fees Total fees = 19.11% of collections Fees are automatically charged HSF Billing and Collections fee – 8.5% (Paid for HSF billing/collections support) Academic Advancement Fund fee – 7.5% (SOM Dean’s tax) Group Practice fee – 1.36% (Charged for being part of the group practice) Registration fee – 0.75% (Paid for HSF patient registration support) Compliance fee – 1.0% (Paid for ensuring physician compliance) Personnel Services–salary and fringe benefit expenses for faculty, classified staff, HSF employees, and other health care professionals Types of Expenses on the FRP

12. Other than Personnel Services (OTPS) Includes all other expenses (e.g., travel, phone, supplies, equipment, malpractice insurance, transcription costs) Private patient clinic cost = facility fee that is based on two components: Collection Rate – estimates the fair market value for services provided to non-government patients in provider-based clinics, on a per RVU basis ‘Medical Center’ RVUs – value of ‘Medical Center services’ provided to non-government patients in provider-based clinics; this is the Medical Center’s portion of the Practice Expense RVU Facility Fee Payment to Med Ctr = Collection Rate x Med Ctr RVUs DOM tax = 5% of clinical collections + 10% of faculty salary (DOM tax does not apply to Research Support Faculty) Types of Expenses on the FRP

13. Divisional Overhead • Divisional overhead is comprised of support staff and other costs that are incurred in the conduct of business • Overhead costs are allocated to faculty members quarterly • Divisions have their own methods for allocating these costs. Methods include…. • Flat rate to faculty members • Pro rata based on consumption of resources • Combination of the two methods • https://deptmedicine.eservices.virginia.edu/MIweb/Administrative/DOMPolicies/DOM%20%20Faculty%20Remuneration%20Plan.pdf

14. In addition to the FRP, faculty members can view several other financial and clinical reports after logging into ERS. These reports include information related to: Clinical billing and activity (RVUs, charges, collections, E&M levels, etc.) MGMA and UHC benchmarks Research administration (PI funds available, labor distribution) License status Completed training courses ERS contains an explanation of each report’s contents Other Reports Available

15. Please contact the DOM ERS team at dom-ers-helpdesk@virginia.edu or your Division Administrator if you have questions about your FRP.