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Generating Discretionary Income in an Academic Department of Pathology.

David N Bailey¹, James M Crawford², Peter E Jensen³

¹Department of Pathology, University of California, San Diego, La Jolla, CA, USA.

Academic Pathology

|October 1, 2021

Summary

Academic pathology departments can generate discretionary income through diverse internal and external sources. Understanding institutional factors is key to maximizing revenue for departmental support and growth.

Keywords:

academic pathology department discretionary income funds flow revenue sources uses

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Area of Science:

Pathology
Academic Medicine
Healthcare Management

Background:

Academic pathology departments face budget limitations, making discretionary income generation crucial.
Discretionary income, defined as unrestricted revenue, is highly desirable for departmental flexibility.
The Senior Fellows Group convened a session at the 2021 Association of Pathology Chairs Annual Meeting to address this topic.

Purpose of the Study:

To explore methods for generating discretionary income within academic pathology departments.
To understand the diverse sources and uses of departmental discretionary funds.
To identify challenges and best practices in financial management for pathology departments.

Main Methods:

A discussion-group webinar featured four panelists presenting their institutions' funds-flow models.
Panelists detailed how discretionary income was derived from both external and internal sources.
Institutional variations and factors influencing revenue generation were discussed.

Main Results:

Discretionary income sources include philanthropy, indirect costs, partnerships, education, research agreements, clinical trials, core facilities, and institutional support.
Significant departmental variations exist due to institutional structure, faculty capabilities, practice plans, donor intent, and market forces.
Uses of discretionary funds encompass salary support, recruitment, research equipment, space renovation, academic programs, and travel.

Conclusions:

Each institution employs unique methodologies for generating discretionary income, with no single standard approach identified.
A robust funds-flow model is fundamental for departmental finances.
Understanding institutional culture, opportunities, and challenges is vital for successful discretionary fund generation and utilization.