LCME Report of Committee 8 Educational Resources: Finance 2005-2006 Charles Paidas, M.D., M.B.A., Committee Chair

Committee Membership Charles Paidas, M.D., M.B.A., Committee Chair, Professor, Surgery and Pediatrics, AIMS Committee Co-Chairman Joann Strobbe M.B.A. CFO and Assoc VP of Finance, Administration & Technology AIMS Committee Co-Chairman Charles Brock, M.D. Assistant Professor, Department of Neurology Faculty Council Treasurer John Dietz, Ph.D. Professor, Molecular Pharmacology and Physiology Charles Edwards, M.D., M.B.A. Professor, Internal Medicine Harvey Greenberg, M.D. Associate Professor, Department of Interdisciplinary Oncology Professor, Radiology Richard Heller, Ph.D. Associate Professor, Surgery Richard Karl, M.D. Richard G. Connar Professor Chair, Surgery Michael Parsons, M.D. Professor, Obstetrics/Gynecology Joseph Jackson Executive Director USF Physicians Group

Executive Summary Educational Resources: Finance Seminal areas of improvement and robust growth Revenue Sources The Practice Plan: USFPG Two new facilities, with projected profitability within the next 2 years In all areas of financial evaluation the committee identified “protection of the COM educational mission”

Issues relevant to finance: Sources of Revenue ’96-’97 = 19% AAMC = 3.3% ’96-’97 = 13% AAMC = 30% ’96-’97 = 47% AAMC = 32.9%

Issues relevant to finance: Mechanisms to Protect balance of activities for Faculty E & G State appropriation = 18 million faculty reports 13% of their total effort in teaching medical students AIMS All Source Budget Pay for Performance Executive Leadership Team (ELT) Dean, CFO, COO, all vice deans Strategic planning and budget cycle

Issues for Finance: Stability of the practice plan Sound organizational structure Business Operations – Benchmarked Performance Measures Days in AR, Charges, Collections, Global RVU’s, Clinic Process (IDX transactions, Ingenix Claims) Allscripts Electronic Health Record Faculty Growth and Retention = 438

Faculty Growth and Retention

Major Changes Since Last Review Governance changes in the practice plan EMC, revenue cycle functions Enrollment cap at 480 Any increase must have LCME approval before capital and enrollment state funds are received New revenue sources USFPG growth for facilities Basic Scientists with research awards North and South campus facilities Faculty recruitment Orthopedics, Sports Medicine New facilities CAHC, Center for Advanced Medical Learning and Simulation, South Campus Clinical Facility COM Organizational Changes

Finance: Areas of Strength Management and growth of the practice Plan National performance benchmarks Consistent and growing state resource base Sports medicine and additional medical students Research expansion with organizational structure Community outreach initiatives help expand diverse clinical education base Growth in faculty expertise Little competition for large multi specialty group

Finance: Areas of Concern Indirect Rebates and Support of research Mission Competition for Clinical Faculty Recruitment – national pressures $$$ Future USF COM state support in climate of additional medical schools Threat of an emerging large group practice Commitment from affiliated hospitals for support of all missions.

Finance Recommendations Increase the Indirect Rebates Continue to decrease the reliance on practice plan dollars in an effort to support the bond payments Cement true teaching hospital support for educational and research missions Increase philanthropic support for COM activities which support the educational mission