Economics of an academic renal division: an approach

Nephrology divisions work within the systems and constraints of a department of medicine in a college of medicine, and in an increasing number of cases, also within a larger health care delivery system. Key to the division's stability are a consistently applied practice pan, how the tenure and clinical track systems function, how teaching funds are distributed, mechanisms of incentive for the division, and its faculty and the ability to establish and maintain reasonable financial reserves, especially for investment in research. Dialysis, transplantation, hypertension, research, and the teaching of medical students, residents, and fellows are the key elements the divisional organization must address. Incentives for faculty performance should be included in all of these areas. The division director must recognize his or her control of earning capacity in the distribution of responsibilities; financial returns as compared with effort involved vary considerably. Three main problems confront the future of our divisions: manpower shortages in nephrology; the effects of managed care systems on nephrology practice; and the future existence and success of departments of internal medicine and academic health centers.