Developing a new faculty practice plan with a model for funds flow between the hospital and the plan

Area of Science:

• Health Systems Management
• Academic Medicine Finance
• Faculty Practice Plans

Background:

• Academic health centers struggle to balance research, teaching, and clinical missions with financial performance.
• The financial relationship between hospitals and full-time faculty is under scrutiny.
• Realignment of funds flow is critical for the survival of many health systems.

Purpose of the Study:

• To describe a novel funds flow model developed during the integration of faculty practice plans into a single health system.
• To provide a framework addressing financial relationships between hospitals and faculty.

Main Methods:

• The model emphasizes a strong partnership between hospitals and full-time faculty.
• It incorporates a governance structure involving chairmen, faculty, and administration.
• Key features include departmental flexibility in financial decisions, a defined formula for graduate medical education funds flow, localized charge capture with central collections, and clear revenue/expense definitions.

Main Results:

• The model facilitates a more sustainable financial relationship between academic health centers and their faculty.
• It enhances operational efficiency through defined financial processes.
• The framework supports the financial viability of integrated health systems.

Conclusions:

• The described funds flow model offers a viable solution for academic health centers facing financial pressures.
• Effective financial partnerships and clear governance are essential for institutional success.
• This model provides a scalable framework for other health systems undergoing integration.