Compensation Plan for UCSD Staff Physicians

BACKGROUND

The Compensation Plan for Staff Physicians is designed to provide the necessary compensation structure and programmatic flexibility to compete effectively with other organizations in recruiting and retaining these employees who are critical to the health care mission of UCSD. In today’s competitive labor market, a market-based approach to compensation is required to attract and retain highly qualified Staff Physicians. The Staff Physicians’ Compensation Plan is designed to address this important business need by providing competitive salaries for Staff Physicians while also balancing the University's need to ensure prudent management of overall costs.

To achieve these multiple objectives, the Staff Physicians Compensation Plan is composed of three key elements: base pay, non-base pay, and incentive pay. To ensure internal and systemwide pay equity between Staff Physicians and Faculty Physicians, the Staff Physicians Compensation Plan is modeled after the Health Sciences Compensation Plan. Each component of the Staff Physicians’ Compensation Plan is described below.

BASE PAY

Base pay is the only salary component that is considered “covered compensation” for University of California Retirement System (UCRS) and vacation pay accrualbenefit purposes. The current Management and Senior Professional (MSP) Salary Grades are utilized as the framework to establish base pay for Staff Physicians. See Attachment A.

Staff Physicians will continue to be classified in accordance with the existing classification series concepts based upon their assigned clinical, supervisory, and administrative duties. Assistant Physicians will be slotted at MSP Grade B; Associate Physicians will be slotted at MSP C; and Associate Physician Diplomates, Senior Physicians and Senior Physician Diplomates will be slotted at MSP Grade D. To maintain appropriate alignment with Faculty Physicians, base pay will not exceed 70% of the combined base and non-base pay, up to the scale base pay limit as shown on Attachment A, unless the base pay must exceed 70% in order to not fall below the MSP salary grade minimum

NON-BASE PAY

The non-base pay component is designed to bridge the gap between “covered” base pay described above and the market-driven compensation levels that the University must meet to attract and retain the Staff Physicians required to meet ongoing staffing needs. The unique feature of this salary attribute is that the resulting pay is negotiated and will fall within the proposed Staff Physicians’ Salary Structure (SPSS) as shown on Attachment B.

On an annual basis, the Assistant Vice Chancellor - Human Resources and the Dean of the School of Medicine will determine non-base pay levels based on budget conditions, market-based criteria, clinical specialty requirements, and operating considerations. Relevant national salary survey sources include, but are not limited to: the Association of American Medical Colleges faculty salary survey, and the Medical Group Management Association surveys. Slotting by clinical specialty is illustrated in Attachment C.

Compensation Plan for UCSD Staff Physicians

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INCENTIVE PAY

To enhance the University’s ability to recruit, retain, and motivate Staff Physicians, a non-

base building incentive pay component is included in the compensation plan for Staff Physicians. The plan is designed to annually provide incentive awards ranging from 0% to 20% of eligible base. Consistent with requirements pertaining to Medicare, and State and Federal tax laws, incentive compensation shall not be paid on the basis of the number or level of patient referrals to the University’s clinical facilities.

Performance-based criteria will be used to determine individual and team contributions. Annually, a detailed report will be submitted to the Office of the President identifying the performance-based criteria upon which decisions regarding eligibility and award amounts are based. Factors used to determine individual incentive awards may include:

Utilization management (maintaining fiscal viability and cost effectiveness of patient care).

Productivity (individual and organization-wide).

Scope of practice.

Utilization of resources.

Quality of care provided.

Patient satisfaction.

Physician communications (internal and external).

Where necessary to meet operational scheduling requirements, employees may be paid

on an hourly basis and retain professional exemption status under the Fair Labor Standards

Act.

ELIGIBILITY

The titles eligible for inclusion in this plan are noted in Attachment D. All individuals participating in the Staff Physicians’ Compensation Plan shall be staff employees of the University of California.

OVERSIGHT AND REPORTING REQUIREMENTS

The Office of the President will conduct an annual review of the plan management. UCSD will submit to the Office of the President an annual report on compensation actions for individuals covered by the plan, including base pay, non-base pay, incentives and related market and organizational supporting data.

As part of campus oversight responsibilities, limitations on outside earnings, for appointments greater than 50%, will be established consistent with the requirements for the Health Sciences Compensation Plan for faculty, as described in Attachment E.

Compensation Plan for UCSD Staff Physicians

ATTACHMENT A

Note: This Attachment will be automatically updated each time an increase in MSP Salary Scales is approved by the Office of the President.

MANAGERS AND SENIOR PROFESSIONALS

SALARYGRADERANGES

For Use With Staff Physicians

- January 2011-

BASE

TITLESGRADEMINIMUMPAY LIMIT

Assoc. Phys. Diplomate

Sr. Physician

Sr. Phys DiplomateMSP D $139,400$277,400

Assoc. PhysicianMSP C$ 111,500$221,900

Asst. PhysicianMSP B$ 89,200$177,500

For purposes of base pay, salaries shall not fall below the range minimums, nor exceed the base pay limits established annually to ensure equity between Staff Physicians and Faculty Physicians with respect to UCRP covered compensation. Base pay will not exceed 70% of the combined base and non-base pay amounts, up to the base pay limits shown above, unless the base pay must exceed 70% in order to not fall below the MSP salary grade minimum.

EXAMPLES

1)Anesthesiologist Associate Physician Diplomate slotted at Staff Physician Grade 6

Target salary level is $230,000

70% of total salary is $161,000

Base pay limit for an Assoc Physician Diplomate is $277,400

Base Pay = $161,000

Non-Base Pay = 69,000

Total Pay = $230,000

2)EMS Associate Physician slotted at Staff Physician Grade 5

Target salary level is $190,000

70% of total salary is $133,000

Base pay limit for Assoc. Physician is $221,900

Base Pay =$133,000

Non-Base Pay = 57,000

Total Pay = $190,000

Compensation Plan for UCSD Staff Physicians

ATTACHMENT B

STAFF PHYSICIANS SALARY STRUCTURE

Effective March 8, 2011

The Staff Physicians’ Salary Structure represents a combination of the base-pay component and the non-base pay component of the Staff Physicians’ Compensation Plan. Annualadjustments in the structure will be approved by the UC President. Criteria that will be used to determine placement within the proposed salary structure includes such factors as market survey data, educational requirements for the position, clinical specialty, years of experience, special certification required, clinical/administrative job duties and responsibilities, and other relevant factors.

SALARY GRADE MINIMUM MIDPOINTMAXIMUM

SP/8$163,400$281,900$400,300

SP/7$142,100$245,100$348,100

SP/6$123,500$213,100$302,600

SP/5$112,300$185,300$258,300

SP/4$ 97,600$161,200$224,600

SP/3$ 84,900$140,200$195,500

SP/2$ 73,800$121,900$170,000

SP/1$ 64,200$ 105,900$147,700

Compensation Plan for UCSD Staff Physicians

ATTACHMENT D

TITLES ELIGIBLE FOR STAFF PHYSICIANS COMPENSATION PLAN

Title CodeTitle Name

0767Medical Service Director

0768Senior Physician Diplomate

0769Senior Physician

0770Associate Physician Diplomate

0771Associate Physician

0772Assistant Physician

0778Consulting Physician

0773Senior Dentist Diplomate

0774Senior Dentist

0775Associate Dentist Diplomate

0776Associate Dentist

0777Assistant Dentist

Compensation Plan for UCSD Staff Physicians

ATTACHMENT E

EXTERNAL EARNINGS

All MSP Staff Physicians with an appointment greater than 50% will be subject to the same restrictions applied to external earnings of faculty who participate in the Health Sciences Compensation Plan. Unless otherwise agreed to by the University, all patient-derived incomemust be turned over to the University.

The relevant section of the Health Sciences Compensation Plan, Section IV.A.3. Other Miscellaneous Income That May be Retained by Plan Members can be read at: compensation/