Using Organizational Philosophy to Create a Self-Sustaining Compensation Plan Without Harming Academic Missions

Area of Science:

• Academic Medicine
• Health Care Management
• Physician Compensation

Background:

• Academic physician reimbursement models are shifting towards productivity-based compensation.
• Existing models often fail to adequately value research and education, leading to faculty dissatisfaction.
• Ensuring self-funding and equity across all academic missions is crucial for sustainability.

Purpose of the Study:

• To restructure the physician compensation plan at the University of Florida Health, Department of Medicine.
• To design a new plan based on principles of equity, productivity, responsibility, respect for missions, transparency, professionalism, and self-funding.
• To improve faculty satisfaction and balance clinical, research, and educational activities.

Main Methods:

• A committee of junior and senior faculty and division chiefs was formed to redesign the compensation plan.
• The new plan was implemented in fiscal year (FY) 2013.
• Faculty satisfaction and key performance metrics were assessed in FY2015.

Main Results:

• Faculty satisfaction with the compensation plan increased significantly, with 61% reporting higher satisfaction.
• Clinical relative value units per faculty increased by 7% (P < .002).
• Incentives paid per faculty rose by 250% (P ≤ .001), and publications per faculty increased by 15% (P < .001).

Conclusions:

• The restructured compensation plan successfully enhanced faculty satisfaction and key academic productivity metrics.
• The plan demonstrates a viable model for self-funding academic missions while valuing diverse faculty contributions.
• Future iterations should consider incorporating quality metrics without compromising efficiency.