University of California, San Francisco School of Medicine Implementing Guidelines for the Health Sciences Compensation Plan Department of Medicine Transforming medicine through innovation and collaboration. http://medicine.ucsf.edu/ I.  INTRODUCTION  ...................................................................................................................  3   II.  REVIEW  AND  APPROVAL  RESPONSIBILITY  ...........................................................................  3   SOM  ADVISORY  COMMITTEE  ...........................................................................................................  4   III.    GOOD  STANDING  CRITERIA  ...............................................................................................  5   DEFINITION  OF  GOOD  STANDING  .....................................................................................................  5   ADMINISTRATIVE  REVIEW  PROCESS  .................................................................................................  6   CONSEQUENCES  ...............................................................................................................................  7   RETURN  TO  GOOD  STANDING  ..........................................................................................................  7   APPEAL  PROCESS  .............................................................................................................................  8   IV.  MEMBERSHIP  IN  THE  HEALTH  SCIENCES  COMPENSATION  PLAN   ........................................  8   V.  COMPENSATION  AND  BENEFITS  .......................................................................................  10   COMPENSATION  ............................................................................................................................  11   A.     Total  Compensation  .................................................................................................................  11   B.   Base  Salary  (X  and  X’)  and  Academic  Programmatic  Unit  (APU)  ...............................................  11   C.   Optional  University  Additional  Compensation  ..........................................................................  12   1)  Negotiated  additional  compensation  (“Y”)  ..............................................................................................  12   2)  Administrative  Stipends  ...........................................................................................................................  13   3)  Incentive  compensation  (“Z”)  ..................................................................................................................  13   D.   Department  Disincentive  ..........................................................................................................  14   E.     Method  of  Payment  for  Faculty  Incentives  ..............................................................................  14   Option  A:  Z  Payment  ....................................................................................................................................  15   Option  B:  Academic  Enrichment  Account  ....................................................................................................  15   F.     Treatment  Of  Accounts  Receivable  If  A  Faculty  Member  Leaves  Department  .........................  16   CATEGORIES  OF  COMPENSATED  OUTSIDE  PROFESSIONAL  ACTIVITIES  (See  APM  025)  ....................  17   A.   Category  I  ..................................................................................................................................  17   B.   Category  II  .................................................................................................................................  17   C.     Category  III  ................................................................................................................................  17   OTHER  INCOME  THAT  MAY  BE  RETAINED  BY  PLAN  PARTICIPANTS  (APM  670-­‐19)  ...........................  17   DEPARTMENT/UNIT  REQUIREMENTS  ON  OCCASIONAL  OUTSIDE  PROFESSIONAL  ACTIVITIES  .........  18   1.     The  limit  on  the  number  of  days  that  may  be  devoted  to  outside  professional  activity:  .........  19   2.     Different  types  of  income:  ........................................................................................................  19   3.     Method  of  Payment  of  Outside  Professional  Activities  ............................................................  20   4.   Conflict  of  Interest  Code  ............................................................................................................  20   5.   Mechanisms  for  Addressing  Potential  Conflicts  of  Interest  .......................................................  20   6.   Monitoring  and  Enforcement  ....................................................................................................  24   7.    Corrective  Action  and  Disciplinary  Measures  ...........................................................................  25   8.   Limitations  on  use  of  University  resources  in  connection  with  outside  professional  activities   26   9.   The  Policy  on  the  Requirement  to  Submit  Proposals  and  to  Receive  Awards  for  Grants  and   Contracts  Through  the  University  .....................................................................................................  26   UCSF  Department  of  Medicine  Compensation  Plan   Page 2 of 38   10.   Non-­‐cash  Compensation  .........................................................................................................  27   11.     Complaints  and  Appeals  .........................................................................................................  28   INCOME  LIMITATION  PLAN  (ILP)  ....................................................................................................  28   BENEFITS  .......................................................................................................................................  28   A.   Base  Salary-­‐Related  Benefits  .....................................................................................................  28   B.    Optional  Benefits  on  Additional  Compensation  .......................................................................  29   C.    Paid  Leave  .................................................................................................................................  29   1)   2)   3)   4)   5)   6)     D.     E.   F.   G   Extended  Illness  Leave  .........................................................................................................................  29   Childbearing  Leave  ...............................................................................................................................  30   Childrearing/Parental  Leave  With  Pay  .................................................................................................  31   Childrearing/Parental  Leave  Without  Pay  ...........................................................................................  31   Other  Paid  Leave  ..................................................................................................................................  31   Bereavement  Leave  ............................................................................................................................  31    Sabbatical  and  Professional  Development  Leave  ....................................................................  32   Vacation  Leave  ...........................................................................................................................  34   Active  Service  Modified  Duties  (ASMD)  .....................................................................................  34   Unpaid  Leave:  .............................................................................................................................  35   VI.  ACCOUNTING  AND  BUDGETING  METHODS  ......................................................................  35   A.  Management  and  Reporting  of  Income  and  Expenses  ................................................................  35   B.  Assessment  of  Professional  Fee  Income  .....................................................................................  36   1)     Patient  Care  Taxes  ....................................................................................................................  36   2)     Outside  Professional  Income  ...................................................................................................  36   C.  Budgeting  and  Accounting  .........................................................................................................  36   VII.  IMPLEMENTATION  AND  TRANSITION  ARRANGEMENTS  ..................................................  37   APPENDIX  .............................................................................................................................  37   Requirements  for  Continuation  of  the  Income  Limitation  Arrangements  .......................................  37   Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 3 of 38   I. INTRODUCTION The Health Sciences Compensation Plan (“Regents’ Plan” or “Plan”) was approved by The Regents of the University of California in July 1999 and amended in 2012 for implementation at all University of California health sciences schools. In accordance with the Regents’ Plan, the President issued Guidelines on Occasional Outside Professional Activities by Health Sciences Compensation Plan Participants. The procedures contained herein (“Implementing Procedures”) provide supplementary regulations for implementation of the Regents’ Plan at the University of California, San Francisco (UCSF) School of Medicine. In adopting these Guidelines, the faculty and administration of the Department of Medicine affirm the philosophy outlined in the Plan. The Plan, the Implementing Procedures, and these Guidelines will be used in the Department of Medicine to foster academic balance among the joint responsibilities of teaching, research, patient care, and other public service responsibilities. Individual levels of compensation shall be established so as to maintain this academic balance and to permit the recruitment and retention of the individuals necessary for the Department of Medicine to fulfill its missions at a level of excellence. In addition to these Implementing Procedures, faculty who are members of the Plan (“Plan Participants”), as defined in section IV of these Implementing Procedures, are also subject to the requirements of other University policies, including (1) the University’s Conflict of Interest code, adopted pursuant to the requirements of the Political Reform Act of 1974, which requires designated University employees to disqualify themselves from participating in University decisions in which they have a personal financial interest; and (2) the Policy on Requirements to Submit Proposals and to Receive Awards for Grants and Contracts Through the University. A Plan Participant’s compensated outside activities may create an obligation for the Plan Participant to disclose a financial interest before making or participating in certain University decisions. Faculty may obtain information on the disclosure and disqualification requirements of the Political Reform Act of 1974, including the Academic Decision Regulation, from the campus Office of Legal Affairs. II. REVIEW AND APPROVAL RESPONSIBILITY These Implementing Guidelines are developed to be consistent with the policy framework of the Regents’ Plan. Affected Plan Participants in the Department of Medicine shall be afforded the opportunity to review and comment on any proposed Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 4 of 38   revisions to the Department of Medicine guidelines, including consultation with the School of Medicine Compensation Plan Advisory Committee (“SOM Advisory Committee”). All such revisions shall be reviewed by the Advisory Committee and approved by the Dean or his/her designee prior to implementation. The Chancellor may approve individual exceptions to the provisions of the Regents’ Plan to meet special teaching, research, or clinical service requirements. All such exception requests shall be proposed by the Chair and approved by the Dean or his/her designee prior to the Chancellor’s review. The School of Medicine (SOM Advisory Committee shall be provided the opportunity to review and comment on any proposed exception(s) to these Implementing Procedures that the Dean intends to submit to the Chancellor for approval. SOM ADVISORY COMMITTEE The SOM Advisory Committee’s role is to assist the Dean in resolving issues that may arise from Plan implementation. The SOM Advisory Committee assists by assuring compliance with and resolving issues on outside professional activities, conflict of interest, and conflict of commitment. The Committee also reviews the submissions of individual Department and Unit compensation plans (“department/unit guidelines”). The SOM Advisory Committee shall consist of six voting members, all of whom must hold faculty appointments and must be Plan Participants in good standing. The Dean shall appoint three members and then three members shall be elected from the School’s Plan membership. At least one member from each title series shall serve on the Advisory Committee at all times; the sixth member may represent any title series. The members shall be representative of the disciplines participating in the Plan. Elected committee members’ terms shall be staggered in order to promote the stability of Committee membership. The terms of service will be three years; elected members may renew their term of service once. The SOM Advisory Committee’s function shall include advising the Dean on: 1) Development of the School Implementing Procedures, including the establishment of Good Standing Criteria, Academic Programmatic Unit (APU) assignments, and APU Scales. (See APM - 670-18-b for more information on APUs). 2) Department/Unit Guidelines, including methods for obtaining faculty input and for determining consistency with these Implementing Procedures. Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 5 of 38   3) Review of potential conflicts between a Plan Participant’s commitment to generating revenue within the Plan and his/her outside professional activities. (See APM - 670-19-c). 4) Review of Plan Participants’ appeals regarding implementing and administering the Plan that are not resolved at the department or school level or are submitted to the Advisory Committee as a result of a determination of being found Not in Good Standing. Plan Participants who are Academic Senate members may pursue their grievance rights before the Privilege and Tenure Committee under Senate Bylaw 335. Plan participants who are Non-Senate faculty are entitled to a Step III hearing under the Academic Personnel Manual (“APM”) - 140. The Advisory Committee shall provide an annual summary report on its activities to Plan participants, the Dean, and the Chancellor. III. GOOD STANDING CRITERIA DEFINITION OF GOOD STANDING Plan Participants shall be deemed in Good Standing until they are otherwise found to be not in Good Standing. Plan Participants should meet department/unit guidelines regarding productivity in research, teaching, patient care, mentoring, and University service, as defined by their series, rank and step. Plan Participants are responsible for actively participating in activities that support the Department of Medicine’s objectives. Plan Participants are expected to demonstrate professional behaviors in all areas of work and share responsibility for the overall success and well-being, including financial well-being, of the department/unit. Loss of Good Standing may occur in the following instances: • • • • • • • • Finding of faculty misconduct Finding of research misconduct Finding of unsatisfactory performance in a Five-Year review Refusal or failure to participate in assigned duties Loss of clinical privileges (as required) Loss of licensure and/or credentials (as required) Refusal or failure to complete required trainings Lack of compliance with University policy and/or reporting requirements Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 6 of 38   • Failure to meet expectations related to the generation of salary support and/or shared expenses ADMINISTRATIVE REVIEW PROCESS In cases of disagreement related to the determination of Good Standing of a Plan Participant or to specific consequences, the Chair shall meet with the Plan Participant to discuss how to remedy the situation and review the specific consequences, as determined by the Plan including, but not limited to, initiating the formal process outlined below. The Chair and the Plan Participant should strive for informal resolution as appropriate to the circumstances, but a specific timeline for resolving the conflict must be defined by the Chair. The Chair shall prepare a written document that summarizes the discussion; a copy of this document shall be given to the Plan Participant. If informal resolution is unsuccessful, the Chair must provide a written statement that summarizes the reason(s) for requesting that a Plan Participant be deemed Not in Good Standing. The document should include recommendations on what actions the Plan Participant must take if they are deemed to be Not in Good Standing. Relevant back-up documentation should be included. The Plan Participant shall be given a copy of the Chair’s written statement and have the opportunity to provide a written response to the Chair within 14 days. If the issue is resolved within the 14 day response period, the Chair shall provide the Plan Participant with a written document that the matter is closed. If the issue is not resolved within the 14 day response period, the Chair’s written statement, any supporting documentation, and the Plan Participant’s response (if provided) shall be sent to the Dean. If the Dean agrees with the Chair’s assessment, the Dean shall issue a written determination that the Plan Participant is Not in Good Standing. This written document will describe any corrective action(s) that must be taken in order for the Plan Participant to return to Good Standing. A copy of the Dean’s determination shall be provided to the Plan Participant, the Chair, and the Vice/Associate Dean of Academic Affairs. If the Dean does not agree with the Chair’s assessment, the Dean will issue a written determination that the Plan Participant remains in Good Standing. A copy of the Dean’s determination shall be provided to the Plan Participant, the Chair and the Vice/Associate Dean of Academic Affairs. Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 7 of 38   Appeal process: If a determination is made that the Plan Participant is Not in Good Standing and the Plan Participant believes that the Good Standing Criteria were applied unfairly, the Plan Participant may appeal to the Advisory Committee. The Advisory Committee shall review the documents, may interview the Plan Participant and/or the Chair, and prepare a written assessment for the Dean. The final decision will be made by the Dean. Plan Participants who are Senate members may pursue their grievance rights before the Privilege and Tenure Committee under Senate Bylaw 335. Plan participants who are Non-Senate faculty are entitled to a Step III hearing under APM 140. CONSEQUENCES The following consequences may be imposed on Plan Participants who are determined to be Not in Good Standing: • Prohibition from participating in and/or retaining income from outside professional activities. • Decrease in negotiated compensation (Y; see APM - 670-18-c (1)). • Loss of or reduction in incentive compensation (Z; see APM - 670-18-c (2)). • Requests for any academic leave will not be approved and/or requests that were previously approved will be reconsidered. Additional consequences may result, as set forth by other policies. RETURN TO GOOD STANDING To return to Good Standing, the Plan Participant must submit a written request to his/her Chair that outlines how the issues were resolved or rectified. The Chair shall review the request, assess the Plan Participant’s progress and submit his/her written recommendation to the Dean, along with the Plan Participant’s request and other supporting documentation, if applicable. If the Chair’s written assessment states that no progress or insufficient progress was made, the Chair should specify in his/her written recommendation to the Dean what further actions must be taken. If the Dean endorses the Chair’s assessment that no progress or insufficient progress was made, the Dean will notify the Plan Participant in writing that he/she is not returned to Good Standing and outline what further actions must be taken. A copy of the Dean’s determination shall be provided to the Plan Participant, the Chair and the Vice/Associate Dean of Academic Affairs. If the Dean determines that all issues were resolved, the Dean shall provide a written assessment to the Chair. The Chair shall notify the Plan Participant in writing that s/he Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 8 of 38   has returned to Good Standing. A copy of the Dean’s assessment shall be provided to the Plan Participant, the Chair and the Vice/Associate Dean of Academic Affairs. If the Plan Participant does not submit a written request to the Chair, s/he shall remain Not in Good Standing. If a Plan Participant remains Not in Good Standing for more than one calendar year, the Chair may wish to pursue further action(s), as set forth by other academic policies. APPEAL PROCESS If the Dean determines that the Plan Participant has not returned to Good Standing and the Plan Participant disagrees with this determination, based upon unfair assessment or application of criteria, the Plan Participant may appeal to the Advisory Committee. The Advisory Committee shall review all written documents, may interview the Plan Participant and/or the Chair, and will prepare a written assessment for the Dean. The Dean will make the final decision. Plan Participants who are Senate members may pursue their grievance rights before the Privilege and Tenure Committee under Senate Bylaw 335. Plan participants who are Non-Senate faculty are entitled to a Step III hearing under APM - 140. IV. MEMBERSHIP IN THE HEALTH SCIENCES COMPENSATION PLAN Membership in the Health Sciences Compensation Plan (“the Plan”) is a term and condition of employment. All new and continuing Plan members will receive a copy of the Regents’ Plan document, the School Implementing Procedures, and these Department of Medicine Guidelines, as well as any related documents or policies. Membership in the Plan continues so long as the Plan continues to be in effect. Separation from an eligible appointment terminates membership in the Plan. School of Medicine faculty members employed by The Regents shall be Plan Participants if they hold University-funded appointments at greater than 50 percent of full time in a School of Medicine department or unit in any of the following professorial series: Professor, Professor in Residence, Professor of Clinical _____ (e.g., Medicine), Adjunct Professor, Acting Professor, Health Sciences Clinical Professor, and Dean. Faculty in the Visiting Professor series who receive income for clinical services and meet the above criteria are also Plan Participants. Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 9 of 38   Faculty members who are otherwise eligible to be Plan Participants, as defined above, but who have appointments of 50 percent of full time or less may participate in the Plan upon the recommendation of the Chair and approval by the Dean or his/her designee. For the Department of Medicine, plan membership is required of faculty members at the San Francisco Veterans Affairs Medical Center (“SFVAMC”) who are in ladder rank, In-Residence, or Clinical "X" series (i.e., they are members of the Academic Senate) and who receive funding from UCSF, even if their University-funded appointment is 50% or less of full-time. Clinical and Adjunct faculty members (i.e., not members of the Academic Senate) at the SFVAMC who receive funding from UCSF will be members of the Compensation Plan if their UCSF funded appointment is greater than 50%. SFVAMC faculty who do not receive any salary support from the University will not be members of the Compensation Plan. Deans and other faculty administrators in Plan schools shall be Plan Participants if they hold an underlying Health Sciences Compensation Plan faculty title; however, salary and reporting requirements are defined by the personnel policies that govern administrative appointments. If the faculty position is funded by two or more School of Medicine departments/units, the Plan Participant shall be subject to the department/unit guidelines of the department/unit in which the preponderance of his/her academic activities occurs. Exceptions to this policy must be requested by submission of a written explanation for the request by the relevant Chairs/Directors and must be approved by the Dean or his/her designee. If a Plan Participant’s position is funded by two or more professional schools with health sciences faculty compensation plans, the Plan Participant shall belong to the compensation plan within the School in which his/her academic home department resides. Exceptions to this policy must be recommended by the relevant Chairs/Directors, endorsed by the Dean(s), and must be approved by the Chancellor. A member of the faculty who was appointed in a health sciences school at the time of his/her retirement may be recalled in accordance with APM 205. All recalled faculty are limited to a maximum total monthly effort of 43 percent. In the Department of Medicine, retired faculty members are recalled to base salary appointments (X, X’), and are not Plan Participants. Plan Participants remain members of the Plan while on vacation and other paid leaves, even if salary is reduced to covered compensation (X) or Base Salary, as well as while on unpaid leaves. Thus, while on any leave, Plan Participants are bound by the rules of the Plan, including but not limited to those rules relating to outside professional activities and income due the plan. Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 10 of 38   V. COMPENSATION AND BENEFITS No single member professional corporations, or any other form of professional corporation, partnership, or other entities for the provision of professional health care shall be permitted for faculty under the Plan without the express written approval of the President. Affected Plan Participants have the opportunity to review and comment on proposed Department of Medicine guidelines as well as any significant modifications, including the setting of approval thresholds, setting of APUs and department assessment rates. These guidelines shall detail: • the Base Salary scale(s); • the manner in which Additional Compensation is negotiated; • the methodology for calculating Incentive Compensation and the frequency of payments; • department requirements on occasional outside professional activities, including good standing criteria; • the department policy on collecting and distributing all income paid into the Plan; and • department policies regarding paid and unpaid leaves of absence and sabbaticals. Plan Participants’ input on proposed department guidelines and subsequent revisions must be obtained by consultation with all affected Plan Participants in a department. Revisions to guidelines must be reviewed and approved by the Dean or his/her designee and may only be altered to take effect on July 1 of each fiscal year. Department guidelines may be more, but not less, restrictive than the Regents’ Plan and must be consistent with the School of Medicine Implementing Procedures. Individual salaries shall be negotiated annually between each Plan Participant and his/her Chair. Requests for salary increases that exceed the specified percentage determined by the Dean require the approval of the Dean  or his/her designee.     Additional compensation shall be paid in accordance with the applicable University and department guidelines during sabbatical leave, vacation leave, extended illness leave, or other types of paid leave. By July 1 of each fiscal year, each Plan Participant shall receive in writing from his/her Chair a statement of proposed compensation for the forthcoming period July 1 – June 30. Base Salary scale assignment, Additional Compensation, and the methodology for calculating Incentive Compensation must be detailed in this statement. Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 11 of 38   For faculty engaged in compensated clinical activities, in the event of termination of employment any outstanding account receivables will be treated in accordance with the compensation arrangement of the individual faculty member. Receivables originated by those without Incentive Compensation will be the property of the University. Incentives earned by a faculty member prior to leaving the university will be paid to the faculty member through the University of California payroll system. COMPENSATION A. Total Compensation Plan Participants shall receive Base Salary, as described below and in APM 670-19, be eligible for optional University additional compensation, as described below, and be permitted to retain other miscellaneous income, as described below and in APM 670-19. Payment under the Plan shall be made directly to the Plan Participant in his/her individual capacity. Generally, off-scale salaries are not permitted. No state funds shall be used for compensation above the portion of Base Salary equivalent to the Fiscal Year salary scales or for any optional University additional compensation as described below. B. Base Salary (X and X’) and Academic Programmatic Unit (APU) Base salary is the approved rate on one of the Health Sciences Compensation Plan Salary Scales associated with a Plan Participant’s academic rank, step and assigned APU. Base salary shall equal at least the approved rate on the Fiscal Year Salary Scale (HSCP Scale 0) for the Plan Participant’s rank and step (X). Base salary is covered under the University of California Retirement Plan (UCRP) up to the amount permissible under Internal Revenue Code provisions and in accordance with UCRP policy and provisions. Plan Participants’ APU scale assignments shall be approved by the Dean or his/her designee and assignments may be changed in accordance with guidelines issued by the Chancellor. The differential between X (Scale 0) and a Plan Participant’s rank and step on the HSCP Salary Scale assigned to the Plan Participant’s APU is designated X-prime (X’). APU: Effective with the implementation of these Guidelines, the Department of Medicine is on Scale 3 of the Health Sciences Scale except for the following Plan members: 1. SFVAMC faculty whose UC effort/salary is less than 51% and therefore must be on Scale 0. 2. SFVAMC faculty whose UC effort/salary is equal to or greater than 51% who elect to be on Scale 0, and whose election is approved by the Department. Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 12 of 38   3. One unit that was permitted to remain at their historically higher scales when they joined the Department's full-time faculty. New faculty appointments within all academic program units, except for certain faculty at the SFVAMC, will be paid at the Departmental base salary scale. The Department may review the base salary scale annually. No individual Plan Participant may be moved from one APU to another without a significant change in duties or a change in department/unit. Chairs/Directors shall obtain written approval from the Dean or his/her designee prior to moving any Plan Participant from one APU to another. C. Optional University Additional Compensation Chairs may provide for the payment of additional compensation, negotiated on an annual basis, to Plan Participants. This optional “Y” salary component is beyond the Fiscal Year base Salary (X) and Health Sciences Scale Differential (X prime) and is never covered compensation under the University of California Retirement Plan (UCRP). Prior to implementing or revising department/unit guidelines, affected Plan Participants and the Advisory Committee shall be afforded the opportunity to review and comment on the proposed Procedures. Additional compensation may be paid, in accordance with fund source restrictions, as follows: 1)  Negotiated  additional  compensation  (“Y”)     Plan Participants may receive a negotiated amount of additional compensation. This component of pay is beyond the base salary and is not covered compensation for UCRP, but may be eligible for optional disability and life insurance programs, where applicable. Mid-year renegotiation of the “Y” is permitted only under unusual circumstances and requires prior approval of the Chancellor or his/her designee. Additional Compensation ("Y") will be negotiated with the department chair and division or service chief on an annual basis. This component is paid on a monthly basis. The "Y" component of a Plan Participant's salary is based upon factors such as the quality, scope, and volume of a Plan Participant's teaching, research, clinical and administrative activities, as well as the availability of a reliable revenue stream for salary support. Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 13 of 38   2)  Administrative  Stipends     Plan Participants may receive administrative stipends, defined as payments by the University for responsibilities related to University administration that exceed normal responsibilities. Division chiefs, program directors and faculty with special administrative responsibilities will be eligible for an administrative stipend. 3)  Incentive  compensation  (“Z”)     Plan Participants may receive incentive compensation, referred to as a Z payment. This incentive compensation is not covered compensation for UCRP. Z payments are drawn from income accumulated in the Plan in excess of financial requirements. To meet financial requirements, a Plan Participant must: • Be in good standing, as defined in Section III of these Implementing Procedures. • Maintain a positive compensation plan account balance. • Maintain solvent X and Y salary sources. In addition, the Plan Participant or his/her home division must be able to demonstrate availability of funds sufficient to cover department tax, as applicable, salary and benefits funded from the compensation plan, and other regularly occurring expenses, in order for incentives to be paid. The Department has implemented an incentive plan as outlined below: 1. The department incentive will be equal to 80% of the surplus reported on individual income and expense statements up to an annual maximum, which is currently $50,000 and which may be changed on an annual basis. The other 20% and any additional surplus will remain in the faculty member's division. The maximum amount will be reviewed annually by the Department’s compensation plan advisory committee. 2. Only 50% of State-funded FTE support and income from endowed chairs and distinguished professorships will be counted as a source of income in the calculation of the incentive. 3. Researchers who do not typically generate clinical revenues in excess of their funding requirements can meet the criteria for a departmental supplement of up $50,000 per year by virtue of salary support on grants and/or by using discretionary funds. As described for the departmental bonus, researchers must contribute the 20% matching funds to their division from permissible sources. 4. The following programs have specific incentive methodologies that vary from the department incentive calculation described above: • Electrophysiology Section, Division of Cardiology (Parnassus/Mt. Zion) • Division of General Internal Medicine (Parnassus/Mt. Zion) Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 14 of 38   Division of Geriatrics Division of Hospital Medicine (Parnassus/Mt. Zion) Kidney Transplant Unit (Parnassus/Mt. Zion) Division of Nephrology (Parnassus/Mt. Zion) Division of Pulmonary, Critical Care, Allergy and Sleep Medicine (Parnassus/Mt. Zion) • Medical Services at San Francisco General Hospital • Medical Services at San Francisco Veterans Administration Medical Center 5. With prior approval from the Chair, divisions may opt to use a work-RVU-based incentive methodology as an alternative to the department incentive calculation described above. • • • • • D. Department Disincentive 1. 2. 3. 4. E. Total compensation may be reduced if a deficit is reported on an individual’s income and expense statement. The Department will work with faculty who make a good faith effort to maximize their productivity so as to avoid deficits whenever possible and to minimize salary reductions as a result of deficits. Faculty compensation will not be reduced below the base salary scale (e.g., scale 3 for most of the Department). For purposes of calculating disincentives, faculty salary sources will include full credit for state-funded FTEs. Method of Payment for Faculty Incentives Negotiated Additional and Incentive/Bonus Compensation will be paid to faculty through the University payroll system, will be subject to Federal and State withholding, and reported on a W-2 form as wages. By May 31 of each fiscal year, each Plan Participant shall discuss with his/her Chair and, with the Chair’s written approval, shall select in writing one of the following two options for income generated through outside activities accumulated in the plan in excess of financial requirements that will remain in effect for the forthcoming fiscal year (July 1 – June 30). Changes are not permitted under any circumstances until the following fiscal year. After the Plan Participant selects one of the following options, the Chair shall review his/her selection. If approved, the Chair shall issue written approval of the Plan Participant’s selection. The options for disposition of outside activity income that has been turned into the compensation plan are: Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 15 of 38     Option  A:  Z  Payment     Income is paid as a “Z” payment, after deduction of appropriate taxes. “Z” payments are paid within 60 days of receipt by the Department. In special circumstances, the Department may hold outside earnings longer than 60 days in order to ensure that all financial obligations have been met. This is the default option and it will be implemented each year for Plan Participants who do not select in writing another option, i.e., Option B.   Option  B:  Academic  Enrichment  Account     Income is allocated to an academic enrichment account and is never eligible to be taken as a “Z” payment or as salary by the Plan Participant. Unexpended balances remain the property of the University when the Plan Participant retires or separates from University employment.   Academic Enrichment Accounts are established for the purpose of supporting the academic activities of the Plan Participant by allowing direct charge or reimbursement for business-related expenses. Funds allocated to an Academic Enrichment Account may be used to support University-approved academic professional activities that are allowed direct charge or reimbursable Universityrelated business expenses of an individual Plan Participant consistent with University accounting guidelines. Once funds are allocated to an Academic Enrichment Account, these funds cannot subsequently be used for faculty salary support. Funds are allocated to an Academic Enrichment Account under the following conditions: • On an annual basis, a Plan Participant may request that funds be allocated to an Academic Enrichment Account for the forthcoming academic year (July 1 through June 30) and such a request must always occur in writing by May 31 of the forthcoming academic year in which the income will be earned. • The Chair or his/her designee reviews the Plan Participant’s allocation request and if approved, written approval shall be given to the Plan Participant. • Chairs may submit a written request to the Dean’s Office to allocate funds for the upcoming fiscal year to an Academic Enrichment Account. The Dean or his/her designee shall review the request and if approved, approval shall be in writing. • Disposition of the funds in an Academic Enrichment Account is under the auspices of the Department. UCSF, through the Chair (or Dean/designee), has final authority over the use and distribution of funds held in an Academic Enrichment Account. Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 16 of 38   • Once funds have been allocated to an Academic Enrichment Account, the Plan Participant cannot change the designation of these funds as Academic Enrichment Account funds. • The department must maintain detailed records that are readily available for audit and other appropriate reviews that support the allowable nature of the reimbursable academic professional expenses that are paid from the Academic Enrichment Account. Plan Participants must submit all required supporting documentation for reimbursement consistent with University accounting guidelines. Unspent travel advances or any other disallowed amounts charged to the Academic Enrichment Account must be repaid by the Plan Participant consistent with University accounting guidelines. • An Academic Enrichment Account can maintain a positive balance at the end of an academic year that may be carried forward to the next academic year, at the discretion of the Chair (Dean/designee). Disposition of year-end positive balance is communicated annually to the Plan Participant at the time requests for allocations to an Academic Enrichment Accounts are made. The Department of Medicine will limit the election described above to treatment of outside income only, unless otherwise specified in the division incentive methodologies listed in Section C.3.4 (Optional University Additional Compensation – Incentive Compensation (“Z”) – Division-Specific Incentive Methodologies). F. Treatment Of Accounts Receivable If A Faculty Member Leaves Department Accounts receivable for patient care revenue belong to and will be kept by the Department of Medicine in the event of a faculty member's departure. For faculty engaged in compensated clinical activities, in the event of termination of employment, any outstanding accounts receivable will be treated in accordance with the compensation arrangement of the individual faculty member. Receivables originated by those without incentive compensation will be the property of the University. Undistributed consulting income that was generated by the faculty member prior to his or her separation from the Department will be paid out to the faculty member after appropriate School and Department taxes have been deducted. These payments will occur via the UC payroll system and will be net of the faculty member's salary, fringe benefits, and other expenses. Academic Enrichment Account funds remain the property of the University. Receivables of Plan Participants with Incentive Compensation shall be handled in accordance with department/unit guidelines. All Incentive Compensation shall be paid through the University of California payroll system. Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 17 of 38   CATEGORIES OF COMPENSATED OUTSIDE PROFESSIONAL ACTIVITIES (SEE APM 025) Compensated outside professional activities are divided into three categories in terms of the extent to which they may raise conflict of commitment issues. For each category, there are different requirements as to prior approval, inclusion in the time limit, and annual reporting. Each of the categories and the related requirements are described below. A. Category I Category I activities are likely on their face to raise issues of conflict of commitment. In order to engage in such activities while an active member of the faculty, the faculty member must make a written request (see APM - 025, Appendix B) to the Chancellor or Chancellor’s designee(s) and receive written approval (e.g., assuming an executive or managerial position in a for-profit or not-for-profit business). B. Category II Category II activities are unlikely to raise issues of conflict of commitment and are ordinarily accepted as regularly performed compensated outside professional activities. Because of this, they are ordinarily allowable without prior approval. (see APM - 025, Appendix C). C. Category III Category III activities are integral to all disciplines and ordinarily do not present issues of conflict of commitment. They are accepted as part of the faculty member’s scholarly and creative work. OTHER INCOME THAT MAY BE RETAINED BY PLAN PARTICIPANTS (APM 670-19) Certain income that accrues from occasional service, as described below, may be “retained” by Plan Participants. Income generated from these activities can deposited into the Plan Participant’s non-University accounts and should not be paid to the University, i.e. is not due to the plan. The Chair and/or Dean or his/her designee shall monitor the frequency of individual activity in these areas: 1)     Income from occasional outside professional activity in accordance with the Guidelines on Occasional Outside Professional Activities by Health Sciences Compensation Plan Participants issued by the President or the President’s designee, these Implementing Procedures, APM 025 and APM 670, Appendix B;   Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 18 of 38   2) Prizes, defined as gifts in recognition of personal achievements and not for services rendered; 3) Royalties, defined as shares of proceeds for contributions as authors or inventors, as allowed under the University’s copyright and patent policies; 4) Honoraria, defined as payments by agencies outside the University for occasional lectures and similar public appearances beyond normal academic responsibilities to the University of California and which are not in return for other services, whether given directly or indirectly; 5) University honoraria, defined as payment for occasional lectures or similar services performed on a University of California campus as permitted by Academic Personnel Policy; and 6) Income from a profession or activity unrelated to the training and experience, which is the Plan Participant’s qualification for University appointment as determined by the Chair in consultation with the Dean. Only the income from item 1 above must be reported annually, as described below, and in APM 025. The preceding item numbers 2 through 6 may be retained as personal income by Plan Participants, are excluded from reporting requirements and do not count in the outside professional activities threshold. Please note that the term “honoraria” is used by other institutions or agencies to refer to compensation for a wide variety of activities. A Plan Participant should not rely on the “honoraria” label to determine the appropriate disposition of a payment by relying on the descriptions of the types of activities where the income can be “retained” by the Plan Participant (described above), or turned into the Plan, as described below. Plan Participants are also encouraged to consult with their division administrators for clarification.   DEPARTMENT/UNIT REQUIREMENTS ON OCCASIONAL OUTSIDE PROFESSIONAL ACTIVITIES Patient care activities must be provided within the University setting or as part of an approved affiliation agreement or professional service agreement. All clinical income is due to the Plan. All income derived from patient care activities is due the Plan, including income earned while on paid or unpaid leaves of absence (e.g., vacation, holidays, or weekends. Income due the Plan must be deposited into the revenue account of the appropriate department/unit compensation plan fund. In no case are Plan Participants allowed to retain income from patient care activities. Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 19 of 38   As described below, income from certain categories of outside activity are “due to the Plan” or “must be deposited to the Plan.” Those funds should be remitted to the University. Once turned into the Plan and appropriate University taxes are deducted, the funds are first used to cover any deficit in the Participant’s salary and benefits funded from the compensation plan and other regularly occurring expenses. Any excess funds not needed for that purpose will be paid out as a “Z” payment or deposited into an Academic Enrichment Account, as determined by the option selected by the Plan Participant, as described earlier.   1. The limit on the number of days that may be devoted to outside professional activity: Plan Participants must not spend more than 48 days (384 hours) per year on outside professional activity. 2. Different types of income: • Income that shall be retained by Plan Participants (i.e., not turned into the Plan), as long as activity totals less than 21 days (168 hours) per year: o Payments for service to governmental agencies; o Payments for service to non-profit health- or education-related organizations; o Payments for activities related to continuing health education programs administered by the University; o Payments from University extension; o Payments for work as a consultant to non-profit entities; • Income that must be deposited to the Plan by Plan Participants: o All patient care income, regardless of where the clinical activity is performed o Payments for work as a consultant to for-profit entities; o Payments for services as an expert or professional witness; o Payments from non-profit health- and education-related organizations, and governmental agencies that exceed 21 days (168 hours) per year o Payments for activities related to continuing health education programs or University extension that exceed 21 days (168 hours) per year. o Stock and stock options in lieu of cash are reportable to the Plan: § Faculty who receive stock or stock options in lieu of compensation for outside professional activities must disclose them to the Dean's Office within 30 days of receipt. § Treatment of stock and stock options is described in detail in Section 10 below. Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 20 of 38   § 3. Faculty who neglect to disclose the stock/options at the time of receipt will owe the Plan the difference between the initial purchase price and the market value at the time it is disclosed. Method of Payment of Outside Professional Activities Faculty members must deposit all outside earnings due the Plan into the Department of Medicine Compensation Plan upon receipt of such payments. The procedures for depositing of checks into the Department of Medicine Compensation Plan are as follows: a. the faculty member enters a new check through the Consulting and Professional Witness Fees Checks (CPWF) online application through MyAccess: http://dombo.ucsf.edu/CPWF/CheckReport.aspx b. if the check is made payable to the individual faculty member, he/she endorses the check to "UC Regents - for deposit only," and checks the box on the on-line form next to “Check Written to Faculty?” c. the faculty member mails the check, with no attachments, to: UC Department of Medicine/SFGH PO Box 742641 Los Angeles, CA 90074-2641 4. Conflict of Interest Code A Plan Participant’s compensated outside activities may create an obligation for him/her to disclose a financial interest before making or participating in certain activities. Disclosure and disqualification requirements can be found in the Political Reform Act of 1974, including the Academic Decision Regulation; and in the University’s Conflict of Interest Code, which requires designated University employees to disqualify themselves from participating in University decision in which they have a personal financial interest. Additional information about these requirements is available through the campus Office of Legal Affairs. 5. Mechanisms for Addressing Potential Conflicts of Interest a) Reporting of Outside Professional Activities: Each Plan Participant shall be required to submit to his/her Chair an annual report that describes the previous year’s outside professional activities from which the Plan Participant received income and an attestation of adherence to the department guidelines. The report should itemize outside activities in temporal order and should be consistent with the reporting requirements specified in APM 025 and any successive sections of the APM. It is the responsibility of the Chair to file and keep these reports. Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 21 of 38   Chair reports shall be submitted annually to the Vice Dean of Academic Affairs. It is the responsibility of the Plan Participant to bring to the attention of his/her Chair any activity(ies) that require(s) advance approval as detailed below. Failure to timely submit such a report is grounds for a finding that the Plan Participant is not in good standing as described in Section III A. When outside professional activities require travel time during a Plan Participant’s regular working hours, the time spent traveling shall be included in computing hours/days of outside service, except when the service is provided to governmental agencies. Service performed during paid or unpaid leaves of absence, including but not limited to vacation days, weekends, and holidays, is reportable and counts toward the limit. b) Good Standing Criteria: As set forth in Section III of these Implementing Procedures, Plan Participants must satisfy the good standing criteria in order to be allowed to earn and/or retain income from outside professional activities. c) Annual Outside Professional Earnings Approval Threshold: The current annual outside professional earnings approval threshold is $40,000 or twentypercent of the Health Sciences Compensation Plan Salary Scale for an individual Plan Participant’s rank, step and APU, whichever is greater. Service during paid and unpaid leaves of absence (e.g., vacation, holidays, weekends) counts toward the threshold. There are two components to the threshold: maximum time and maximum earnings. Time Threshold: The total number of hours for all outside activities (service to governmental agencies, non-profits, for-profits, legal witness, etc.) must not exceed 48 days (384 hours). Plan Participants in the Department of Medicine are permitted to retain up to 21 days of certain outside income or up to the earnings threshold, whichever comes first, as described in Section V.E.2. Plan Participants in the Department of Medicine who wish to exceed the time threshold defined by their department/unit must receive advance written approval for outside professional activities that exceed the department’s/unit’s time threshold. Chairs shall seek written approval from the Dean or his/her designee. All income from activities in excess of the time threshold is due the Plan, even if the earnings threshold has not been reached. Earnings Threshold: Effective with the issuance of these Implementing Procedures, the maximum annual outside professional earnings approval threshold is $40,000 or 20% of the Plan Participant’s Base Salary (covered compensation, Fiscal Year: July 1 to June 30), whichever is greater. All income Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 22 of 38   from activities that exceeds the earnings threshold is due the Plan, even if the time threshold has not been reached. A Plan Participant who has satisfied the good standing criteria set forth in these Implementing Procedures and established by his/her department/unit, who has not exceeded the limit on the number of days devoted to compensated outside professional activities established by the department/unit, and whose annual earnings from all outside professional activities is estimated to be less than the approval threshold is allowed to engage in outside professional activities (other than patient care) without having to request prior approval from his/her Chair to engage in the activities unless required by other Academic policies, e.g. APM 025 for Category 1 activities. The Dean or his/her designee must approve such activities for the Chair. Plan Participants are responsible for maintaining updated records of their annual earnings and the time spent on all outside professional activities. To request approval to exceed the $40,000/20% base salary Earnings Threshold, a Plan Participant must complete and submit the Earnings Threshold Exception Request form to his/her division chief. The chief will verify that the Plan Participant is in good standing, and that issues around potential conflict of interest and/or conflict of commitment area resolved. The Chair will review requests approved by the chief. The Plan Participant must submit requests at least 30 days prior to the expected start date of the work that requires the exception. This policy must conform to the Regents’ Plan Guidelines on Occasional Outside Professional Activities. If a Plan Participant wishes to engage in an outside professional activity that might reasonably be expected to generate income that exceeds $40,000 / 20% of base salary per year, s/he must request written approval to engage in the activity. To request approval, the Plan Participant is required to provide his/her Chair an advance written request. Chairs shall seek written approval from the Dean or his/her designee. This request must include relevant details about the proposed activity including: the nature of the services to be provided, the person or entity who will pay for the services1; the anticipated period of service and/or days to be devoted to the activity; the total expected income from the activity; and the amount by which the Plan Participant’s total annual earnings from outside activities are expected to exceed the threshold. Chairs shall forward to the Dean or his/her designee any request which requires review by the Dean and/or Chancellor, in accordance with these Implementing Procedures and APM 670. The Chair shall advise the Plan Participant whether: 1) the activity may be                                                                                                             1  When  required  to  ensure  patient  confidentiality,  the  person  or  entity  to  be  reported  as   recipient/payer  for  professional  witness  activities  is  the  attorney  or  the  law  firm  requesting  the   services.   Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 23 of 38   undertaken, but with all related income accruing to the department/unit in accordance with their implementation guidelines and established accounting practices; or 2) the activity may not be undertaken. If a Plan Participant has received approval to engage in an activity that is reasonably expected to cause his/her total annual earnings from outside professional activities to exceed the established approved threshold, s/he must request the Chair’s approval for any subsequent engagement(s). If any subsequent engagements are allowed, they shall be undertaken with all related income accruing to the Plan unless an exception is approved in writing in accordance with department/unit Guidelines. Chairs and/or the Dean or his/her designee may approve a Plan Participant’s request to engage in outside professional activities in accordance with these Implementing Procedures and department/unit Guidelines. Only the Chancellor has authority to approve any request which involves a Plan Participant’s retention of earnings that exceed the maximum annual outside professional earnings approval threshold set by the Provost (currently $40,000 or 20% of the Plan Participant’s base salary). Plan Participants shall notify their Chair immediately if they inadvertently exceed the dollar threshold or if any of the information they provided in an approval request changes or is found to be inaccurate; for example, a Plan Participant should immediately notify his/her Chair if the initial estimate of earnings from an outside professional activity turns out to be understated. Plan Participants are subject to corrective action and disciplinary measures as outlined below and in APM 670 Appendix B-d for violation, neglect or manipulation of Compensation Plan requirements. Chairs/Directors must notify the Vice Dean for Academic Affairs if they believe a Plan Participant has violated, neglected, or manipulated Compensation Plan requirements. Plan Participants may be subject to corrective action and disciplinary measures for such violations.         The following table lists the different types of outside professional activities, whether the income from those activities should be retained by Plan Participants or is due to the Plan, and whether it is subject to the 48-day limit on outside professional activities. Plan Participants must obtain approval from their Chair/Dean to engage in more than $40,000 of work in the categories listed below the double lines in the following table     Retained  by  Plan   Due  to  Comp  Plan   Must  be  included   Participant  (income   (income  is   in  Annual   is  not  deposited  to   deposited  to  the   Reporting  and   the  DOM  Comp   DOM  Comp  Plan)   counted  in  48-­‐day   Plan)   limit   All patient care Never   Yes   Not  applicable   income, regardless of where the clinical activity is performed Prizes (recognition of Yes   No   No   Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 24 of 38     Retained  by  Plan   Participant  (income   is  not  deposited  to   the  DOM  Comp   Plan)   Due  to  Comp  Plan   (income  is   deposited  to  the   DOM  Comp  Plan)   Must  be  included   in  Annual   Reporting  and   counted  in  48-­‐day   limit   Yes   No   No   Yes   No   No   Yes   No   No   Yes   No   No   Service to governmental agencies   Yes,  up  to  21  days   and  <$40,000  total   outside  earnings   Yes   Service or consulting to non-profit health- or education-related organizations or other non-profit entities; Continuing health education programs administered by the University or University extension Consulting to for-profit entities   Expert or professional witness fees Yes,  up  to  21  days   and  <$40,000  total   outside  earnings   Yes,  for  work  done   beyond  21  days  and   for  total  outside   earnings  >$40,000   Yes,  for  work  done   beyond  21  days  and   for  total  outside   earnings  >$40,000   Yes,  up  to  21  days   and  <$40,000  total   outside  earnings   Yes,  for  work  done   beyond  21  days  and   for  total  outside   earnings  >$40,000   Yes   No   Yes,  all  earnings   Yes   No   Yes,  all  earnings   Yes   personal achievement) Royalties (author, inventor)   Honoraria for occasional lectures, public appearances outside the University University honoraria (e.g., occasional lectures)   Income unrelated to qualifications for University appointment   6. Yes   Monitoring and Enforcement Chairs/Directors have primary responsibility for monitoring and enforcing the requirements of their department/unit guidelines and these Implementing Procedures. The primary means of monitoring compliance shall be the Chair’s/Director’s annual Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 25 of 38   review of the information the Plan Participants provide in their annual reports on outside professional activities. If a Chair/Director has concerns about whether a Plan Participant is meeting the established standards, the matter should be referred to the Dean’s Office. The responsibility for oversight of the outside professional activities of Chairs and Directors resides with the Dean and may be delegated to the Vice Dean of Academic Affairs. 7. Corrective Action and Disciplinary Measures The University reserves the right to take corrective action and disciplinary measures against any Plan Participant who fails to comply with the Plan, these Implementation Procedures, and or department/unit guidelines. Situations where Plan Participants will be considered out of compliance include, but are not limited to: a) failure to disclose and deposit income due to the Plan as required by these Implementation Procedures and department/unit guidelines; and/or b) failure to accurately disclose and describe the nature and scope of outside professional activities as required by these Implementation Procedures and department/unit guidelines. Corrective action refers to the discontinuation of certain privileges available only to Plan Participants, in particular the opportunity to earn and receive compensation above the fiscal year salary scale through the Plan because of noncompliance. For example, corrective actions may include: • • Discontinuation of Incentive Compensation (the “ Z”) until the Plan Participant complies with the Regents’ Plan provisions; and/or Additional Compensation (the “Y”) may be set with consideration of the Plan Participant’s prior performance, including compliance with guidelines on outside professional activities. Whenever reductions in compensation are the result of corrective action or discipline, the Chair/Director shall notify the Plan Participant in writing. Corrective action does not preclude sanctions or disciplinary measures in accordance with the Faculty Code of Conduct and Academic Senate Bylaws. Plan Participants who violate either the time or earnings thresholds on outside professional activities represent an unauthorized use of University resources and/or retention of funds belonging to the University. Such violations are subject to discipline in accordance with the Faculty Code of Conduct. A Plan Participant who is an Academic Senate member and who is subject to corrective action has available to him/her a grievance process through the Privilege and Tenure Committee as provided by Academic Senate Bylaw 335. Non-Academic Senate Plan Participants may grieve through the provisions set forth in APM-140. Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 26 of 38   8. Limitations on use of University resources in connection with outside professional activities The use of University staff, laboratories, facilities or other University resources in connection with outside professional activities is subject to limitations. Reference the Faculty Code of Conduct, Part II. C, and APM- 015, Section II. Plan Participants who wish to engage in consulting or expert witness activities are strongly encouraged to contact the Risk Management Office to clarify whether the outside activity is within the course and scope of University employment and to determine the need for personal liability coverage. A reasonable amount of University resources may be used in support of activities to governmental agencies, non-profit health-or education-related organizations, continuing health education programs administered by the University, and/or University Extension, even if the individual Plan Participant retains the income from these activities. Reasonable use of University resources includes use of office telephones or faxes for incoming or outgoing communications (although long-distance charges should not be borne by the University); use of departmental office space for interviews or other similar activities; use of University-provided computers (though not departmental computer support personnel); minimal use of administrative personnel to arrange meetings, prepare materials, schedule travel, etc. when these activities relate to the outside professional activities of a faculty member. Questions about appropriate use should be directed to the Plan Participant’s division chief; if the Plan Participant is a chief, questions should be directed to the Chair. 9. The Policy on the Requirement to Submit Proposals and to Receive Awards for Grants and Contracts Through the University The Policy on the Requirement to Submit Proposals and to Receive Awards for Grants and Contracts Through the University was issued by the President on December 15, 1994 and applies to all faculty. This policy states that employees who receive any part of their salary through the University, or whose activities use any University resources or facilities, must submit their proposals for extramural support through the appropriate University contracts and grants office. This requirement ensures that all research and other extramurally funded projects comply with relevant University policies and guidelines. An exception to this policy has been granted to UCSF VA faculty who are physically located at the VA and who use VA resources to perform the funded project. Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 27 of 38   10. Non-cash Compensation Professional income governed by the Plan includes cash and non-cash compensation. Plan Participants are required to disclose non-cash compensation received in exchange for professional services within 30 days of receipt. The following paragraph provides specific guidance with respect to stock, stock options, and founders’ stock. A Plan Participant who receives stock in lieu of compensation for outside professional activities must disclose this fact to his/her Chair/Director and to the Dean’s Office within 30 days of the date of receipt, at which time it will be valued. If the stock is given to the Plan Participant at no cost, payment in dollars equal to the stock’s full value on the date of receipt is due the Plan. If the purchase price is equal to the market price/value on the date of receipt, no money is owed the Plan. If the purchase price is below the valued price on the date of receipt, the difference between the purchase price and the value of the stock on the date of receipt is due the Plan. Following a determination of the value of the stock, the Plan Participant will be notified of the nature of any Plan obligations, based on the above methodology. Plan Participants who do not disclose the stock at the time of receipt will owe the Plan the difference between the purchase price or value of the stock at the time of receipt and the value of the stock at the time it is disclosed. Disclosure at the time of receipt is required regardless of the stock’s potential valuation, and regardless of whether a Plan Participant believes that any payment is due the Plan. Plan Participants in the Department of Medicine may be able to retain the money due the Plan if they have not yet met or exceeded their time and/or earnings threshold for outside professional activities. However, both the time spent in outside professional activities related to the receipt of stock and any dollars due the Plan under the formula above must be counted toward their time/earnings thresholds. A Plan Participant who receives stock options in lieu of compensation for outside professional activities must disclose this fact to his/her Chair/Director and the Dean’s Office within 30 days of the date the stock option agreement is signed. The Dean’s Office shall obtain a valuation of the stock options as of the date of the agreement. If the option offer price is equal to or greater than the stock’s valuation/market price on the date the agreement is signed, no money is owed the Plan. If the option price is below its valued price on the date the agreement is signed, the difference between the option price and the value of the stock is due the Plan. Following determination of the value of the stock, the Plan Participant shall be notified of the nature of any Plan obligations, based on the above methodology. Plan Participants who neglect to disclose this information within 30 days of signing such stock option agreements shall owe the Plan the difference between the offered option price at the time the agreement was signed and the value of the stock at the time it is disclosed. Disclosure of stock options is required regardless of: 1) the stock’s potential valuation, 2) whether the Plan Participant intends to exercise the options, and 3) whether the Plan Participant believes that any dollars are due the Plan. Plan Participants may be able to retain the dollars due the Plan if they have not yet met or exceeded their time and/or earnings threshold for outside professional activities. Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 28 of 38   However, both the time spent in outside professional activities related to the receipt of stock options and any dollars that would be due the Plan under the formula above must be counted toward their time/earnings thresholds. A Plan Participant who receives founder’s stock in lieu of compensation for outside professional activities must disclose this fact to his/her Chair/Director and to the Dean’s Office within 30 days of the time of receipt. The founder’s stock will be valued at the time of receipt and any value shall be due the Plan. Since the value of founder’s stock is generally insignificant, in most cases a negligible amount will be due the Plan. However, if the founder’s stock is not disclosed upon receipt, the value of the stock at the time that the disclosure is ultimately made shall be due the Plan. 11. Complaints and Appeals If a Plan Participant has a complaint about an issue related to outside professional activities, s/he should make every effort to resolve the complaint at the department/unit level. If the complaint cannot be resolved through discussion and negotiation at this level, then the Plan Participant’s complaint and the Chair/Director’s response shall be documented in writing. If the Plan Participant disagrees with the department/unit response, s/he should file a formal complaint with the Dean. The Advisory Committee is charged with fact-finding to assess the nature of the complaint. Both the Chair/Director or his/her designee and the Plan Participant have the right to be interviewed by the Committee. The Committee shall issue a formal written recommendation for resolution of the complaint to the Dean. The Dean shall review this recommendation and make a final decision. Plan Participants who are Academic Senate members may pursue their grievance rights under the terms of Senate Bylaw 335. Non-Senate Plan Participants may request a hearing under the terms of APM - 140. INCOME LIMITATION PLAN (ILP) The Income Limitation Plan (ILP) arrangement is not an option for compensation of faculty who were not grandfathered as ILP members on July 8, 1998. BENEFITS All benefits as described below and in related policies shall be provided uniformly within the Department of Medicine, as reviewed by plan participants and as approved by the Dean. A. Base Salary-Related Benefits Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 29 of 38   Base salary-related benefits are associated with a Plan Participant’s salary from one of the Health Sciences Salary Scales. These benefits may include participation in the UCRP, health care benefits, disability benefits, regular term life coverage, and other benefits as may be approved by The Regents. Base salary-related benefits shall be made available to Plan Participants on the same basis as to all other members of the University faculty. B. Optional Benefits on Additional Compensation The Regents have authorized disability and life insurance benefit programs related to health sciences additional compensation beyond the base salary. These programs must be approved by the Office of Human Resources, Office of the President. Policies governing optional disability and life insurance programs on additional compensation are available from that office. C. Paid Leave Plan Participants who are eligible for sabbatical leave, leave with salary, or extended illness leave shall be granted such leave paid at least the Health Sciences Scales Base Salary rate (X, X’) as set forth in these Implementing Procedures. A Plan Participant who leaves University service or transfers from a vacation-accruing title to a nonaccruing title shall be paid for accrued vacation at the Plan Participant’s total negotiated salary rate at the time of separation.   With the exception of the provisions below, or where explicitly stated in policy, Plan Participants are eligible for leaves as defined in APM - 710 - 760. Plan Participants remain members of the Compensation Plan while on paid leave, even if their salary is dropped to base. While on paid leave, they are bound by rules of the Plan, the School of Medicine Implementing Procedures and these Guidelines, including but not limited to policies related to income due the Plan.   1)   Extended  Illness  Leave   Extended illness is defined as a health condition resulting in absence for more than two weeks. Extended illness must be documented as a leave with pay on a Leave of Absence form. Per University policy, faculty do not accrue sick leave but may be approved for leaves with pay (i.e., "salary continuance") during periods of extended illness or disability (APM 710). An absence of greater than two weeks for health reasons is considered an Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 30 of 38   extended illness and should be officially recorded as a leave with pay, and when appropriate, will be designated as Family Medical Leave (FMLA). Faculty who can perform part of their usual duties or other duties assigned by the Department will be required to do so. With appropriate documentation, which may include a physician's certification of disability and/or an outside third party review at the Department's expense, the Department of Medicine will provide salary continuance during periods of extended illness or disability as follows: Plan Participants with 0-3 years of service: Full time Plan Participants who are unable to work for health reasons and who have less than three years of service at the time of illness/disability, will continue to receive full salary (X+Y) for a period equivalent to 1 day per month of service, from the date of hire to the date of illness or disability. Plan Participants with 3+ years of service: Plan Participants who are unable to work for health reasons and who have more than three years of service at the time of illness/disability will receive full salary (X+Y) for 180 calendar days. A maximum of 180 days of full salary (X+Y) continuation will be provided to a Plan member during a period of six fiscal years. Plan Participants who have used any months will regain 30 days per subsequent year or fraction thereof until 180 days have been re-accumulated. Plan Participants who are unable to return to work after using their extended illness/disability leave will no longer be paid by the Department. However, the Plan Participant may be covered by employee and/or employer-paid plans, in which s/he had previously enrolled via the University or an outside source. Plan Participants are strongly encouraged to review their individual insurance needs for extended illness/disability leave and to consult current extended illness/disability policy documents for complete information about the University plan and the coverage they provide. Plan Participants are encouraged to apply for supplemental disability insurance with a 30 day waiting period. See attached Appendix, Section II for more details of the faculty disability plans which also may be obtained from the Office of the President benefits' web site at http://atyourservice.ucop.edu/. 2)   Childbearing  Leave   Childbearing leave is for a Plan Participant who bears a child or children regardless of academic series or months of service. Childbearing leave shall consist of time the Plan Participant is temporarily disabled because of pregnancy, childbirth, or related medical conditions. The Department of Medicine grants 12 weeks of childbearing leave, which is twice the leave required by University policy. Compensation during this leave is at a Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 31 of 38   Plan Participant’s currently negotiated salary rate, excluding bonuses. Childbearing leave will be granted even if the Plan Participant has served in their faculty title less than 12 consecutive months. It is expected that the funding sources supporting a Plan Participant at the time of her childbearing leave will continue to be used during childbearing leave. If additional leave is required for medical reasons, the Department's policy regarding leaves for extended illness shall apply. Prior to the commencement of an approved childrearing/parental leave, the Division Chief, Service Chief, Department Chair, and individual Plan Participant should reach an agreement about clinical commitments, keeping in mind any medically necessary and/or reasonable accommodations. A Plan Participant who bears a child is also eligible for childrearing/parental leave without pay and a period of Active Service-Modified Duties (See APM 760-28). 3)   Childrearing/Parental  Leave  With  Pay   Fathers/non-birth parents shall be granted two weeks of paid childrearing/parental leave, upon request, at their current negotiated compensation. Childrearing/Parental leave with pay must be used within 12 months of the birth or adoption. 4)   Childrearing/Parental  Leave  Without  Pay   Plan Participants are eligible for full-time or part-time parental leave without pay for a maximum of 12 months to care for a child. At the Plan Participant’s request, accrued vacation shall be substituted for unpaid parental leave. Childrearing/Parental leave without pay must be used within 12 months of birth or adoption. 5)   Other  Paid  Leave   Paid leave will be granted when a Plan Participant is unable to work because s/he must care for a spouse, domestic partner, child or parent who is ill. Paid leave under such circumstances shall be for five days per Plan Participant per year at full salary (X+Y). If eligible for family and medical leave in accordance with APM 715, the five-day paid leave will run concurrently with the family and medical leave. 6)     Bereavement  Leave   In event of death of a Plan Participant’s family member or of a person residing in the Plan Participant’s home, the Plan Participant may take ten (10) days of bereavement leave, at their current negotiated compensation. In the case of the death(s) of individual(s) not in a Plan Participant’s family or household, the Plan Participant may Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 32 of 38   take five (5) days of bereavement leave, in total, in a calendar year, at their current negotiated compensation.     D. Sabbatical and Professional Development Leave 1) The maximum period for a sabbatical or professional development leave is 12 months. The time allowed depends on the amount of accrued leave credit, as well as the goals and academic plans for the sabbatical. Fiscal-year appointees accrue four quarters of sabbatical leave credit per calendar year, excluding periods of leave of absence without salary. The maximum number of credits which may be accrued is forty quarters or ten years. The smallest unit of leave one can take is one quarter or up to three months. Sabbatical Leave Credit for Fiscal-Year Appointees on the Quarter System as found in the APM 740-Chart II: Sabbatical Leave Per Quarter Qualifying service 6 quarters 9 quarters 12 quarters 15 quarters 18 quarters 21 quarters 24 quarters 27 quarters 30 quarters 33 quarters 36 quarters 1 Quarter 0.67 Salary* Regular Salary 2 Quarters 3 Quarters 4 Quarters 0.67 Salary* 0.83 Salary Regular Salary or 0.67 Salary* 0.78 Salary 0.89 Salary or 0.67 Salary* Regular Salary or 0.75 Salary 0.83 Salary 0.92 Salary Regular Salary * Or regular salary if leave is taken in residence. 2) Initial eligibility requires an appointment as a full-time Academic Senate member of the faculty and the accrual of sufficient sabbatical leave credit. For Plan Participants whose initial appointments were in a non-Academic Senate series, departmental endorsement for a sabbatical or professional development leave may be forwarded to the Dean's Office once a sufficient amount of leave credit has been accrued and if approved by the Plan Participant’s Division Chief and Service Chief, and by the Departmental Promotions Committee. Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 33 of 38   3) Immediately following the leave of absence, the recipient will return to active University service for a period at least equal to the period of leave. Subsequent sabbaticals and professional development leaves may be taken by Plan Participants once they have accrued sufficient sabbatical leave credit. For Plan Participants whose initial appointments were in a non-Academic Senate series, time served prior to their full-time Academic Senate appointment does not count towards sabbatical leave credit accruals. 4) Except as noted below, Plan Participants are expected to provide all of the salary support needed for sabbatical or professional development leaves. The Plan Participant should not expect salary coverage from their Division or Service, or from the Department. Plan Participants eligible for an approved sabbatical leave with pay will, at a minimum, be paid at a rate equal to their Base Salary Scale (e.g., 1.3x) while on leave. If a Plan Participants has sources of support to meet the difference between his/her FTE and 1.3x, it is expected that such funds will be used to cover this difference. To receive any salary above the amount of their Base Salary Scale, faculty must have sufficient funds to cover the difference between what the Department receives for their FTE and the salary they are paid, which can be as high as their full, negotiated salary. Sources of funds may include extramural funds and/or clinical funds. Plan Participants are not able to accept salary directly from another institution during paid sabbatical or professional development leave. Plan Participants eligible for professional development leave with pay must provide funds to meet their Base Salary Scale amount while on leave and can receive up to their full salary if their sources of funds are adequate. 5) Because of the need for adequate scheduling, planning, and organization, the desire to take a sabbatical or professional development leave must be discussed with the Division Chief, Service Chief (if applicable), and Chair. It is expected that the Plan Participant’s request for sabbatical or professional development leave be submitted to the Department one year prior to the proposed departure date. Furthermore, the Plan Participant is strongly urged to seek outside funds early. The exact dates of such leaves will depend on the needs of the Division and the Department of Medicine. 6) Provision must be made by the Plan Participant in consultation with the Division Chief, Service Chief (if applicable), and Chair, to cover his/her institutional, research and particularly, clinical duties. Provision must also be made to take appropriate care of the personnel within the investigator's laboratory, especially any fellows or graduate students. 7) Because it is easy to continue current activities if the sabbatical or professional development leave is carried out in San Francisco, the Plan Participant is encouraged to Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 34 of 38   take the time at a site distant from the institution. This will maximize the benefits to be obtained from this opportunity. 8) In discussing the proposed sabbatical or professional development leave with the Division Chief, Service Chief (if applicable), and Chair. the following points should be included: • • • • • • • E. A written academic plan (see APM-740: "Application" for specific details) The benefits to the individual and institution The plans for coverage of clinical, institutional, grant and laboratory responsibilities. Actual or potential sources of financial support. Specific departure and return dates Written approval (see APM-740-99) A written summary of accomplishments (see APM 740-97). Vacation Leave In accordance with Academic Policy 730, full-time faculty vacation allowance accrues at the rate of two working days per month for full-time service. For part-time faculty who work at least half time (50%), vacation allowance accrues at that proportion of the fulltime rate. For part-time faculty working less than half-time, there is no vacation allowance. Vacation credit may accumulate to a maximum of 48 working days. Faculty may not use vacation leave until it is actually accrued. The Department of Medicine is required by the University to maintain vacation use records of faculty who accrue vacation leave. Each faculty must log into the online HBS Timekeeping system on a monthly basis to report any vacation use. Even if no leave is taken, each faculty must log into the HBS system to indicate that no leave was used. On a quarterly basis, the Division Administrator will prepare a report on faculty compliance with the HBS system for the Division Chief to sign and submit to the Academic Affairs Manager of the Department.   F. Active Service Modified Duties (ASMD) In addition to paid or unpaid parental leaves, periods of Active Service—Modified Duties (ASMD), at full negotiated pay (i.e., X + Y) shall be granted on request to any Plan Participant who has primary responsibility for the care of an infant or child for the period before and/or immediately following a birth or adoption of a child under age five. Under academic policy, the total combined period of childbearing leave and ASMD for each childbirth or adoption may not exceed one quarter. The Plan Participant who requests a period of ASMD must confer with her/his department chair, director Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 35 of 38   and/or division chief prior to its begin date, in order to reach agreement on the nature and scope of the Plan Participant’s duties during this period. G Unpaid Leave: In addition to the types of leave described above, leaves of absence without pay for other good cause (e.g., for family care or other personal reasons) may be granted, subject to approval by the Department Chair, Vice Dean for Academic Affairs, and Vice Provost for Academic Affairs. In general, such leaves may not exceed one year. However, during such periods of leave, Plan Participants may not engage in compensated outside professional activities, and they shall remain members of the compensation plan and subject to all its requirements. Exceptions to this policy are granted only in extraordinary circumstances, or where other policy or formal agreements supersede compensation plan policy (for example in cases of extended governmental service, for faculty placed on administrative leave, or for those on leave under the terms of a formal UCSF affiliation with an outside organization such as the Howard Hughes Medical Institute). VI. ACCOUNTING AND BUDGETING METHODS A. MANAGEMENT AND REPORTING OF INCOME AND EXPENSES All professional services income generated by Plan Participants shall be accounted for and reported as revenue of the University; the only exception to this requirement shall be income which the Plan Participant is allowed to retain in accordance with his/her department/unit guidelines. All income owed the University must be deposited in accordance with University cash/check handling policies and procedures and recorded in the appropriate revenue account and a fund within the UCOP fund group 409140. For payments made directly to the individual Plan Participant and owed to the Plan, the check should be endorsed payable to the University and deposited in the same fund. A receipt for each such deposit should be provided to the Plan Participant. All compensation paid by the University to Plan Participants is subject to Federal and State tax withholding and reported on a W-2 form as wages. All financial transactions shall be approved, documented, and otherwise processed or executed in accordance with University, campus and School of Medicine policies, procedures, and delegations of authority. Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 36 of 38   In accordance with the Plan, all professional fee billing and collection activities shall be conducted by a University billing group or by an external vendor which has been approved by the Medical Group and the Dean. B. ASSESSMENT OF PROFESSIONAL FEE INCOME A rate annually recommended by the Dean and approved by the Chancellor for each Department shall be applied against gross professional fee collections. The Department of Medicine's Dean's tax, which is subject to change annually, currently is 3.7% at Parnassus/Mt Zion and 3% at SFGH. 1) Patient Care Taxes Information on departmental tax rates on patient care income will be available to each faculty member at the beginning of the fiscal year. 2) Outside Professional Income As of October 1, 2001, Department taxes on Professional Fee Income that is deposited to the Compensation Plan are as follows: Department Tax Income deposited into Compensation Plan 0% 15% 20% ≤ $5,000 $5,001-$20,000 >$20,000 C. BUDGETING AND ACCOUNTING All the funds and transactions associated with the Plan will be accounted for in accordance with the applicable sections of the University accounting manuals. Each department and unit shall develop and submit to the Dean an all funds consolidated budget/forecast at regular intervals as determined by the Dean’s Office. Except where accumulated surpluses are being used to support an extensive growth phase, it is expected that revenue will always be adequate to support anticipated expenses. Current Year expenditures shall be budgeted for and funded in the following order of priority: 1) Clinical practice operating expenses, defined as costs incurred by the department/unit for billing and collection of fees for clinical services; for Plan Participant use of University-owned and/or leased practice facilities; and for all related operating activities including administrative overhead. 2) To the extent that funds remain after expenditures for clinical practice costs indicated in 1) above, compensation may be paid to eligible Plan Participants . Base Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 37 of 38   salary and related benefits, including any required contribution on behalf of UCRPcovered compensation shall be funded before additional compensation. 3) To the extent that funds remain after the foregoing expenditures, benefits approved in accordance with the Regents’ Plan may be paid. Each department and unit shall maintain a Reserve for Contingencies. These reserves will be used for academic purposes such as funding necessary renovation projects, recruitment expenses, or unfunded research expenses, and as a security for emergencies. In the event a department/unit has accumulated a surplus beyond that required to cover contingencies, it is expected that these funds will be used to enhance the department’s/unit’s academic program or to develop new programs as recommended by the Chair/Director and approved by the Dean. Fund balances will be monitored quarterly by the Dean or his/her designee. VII. IMPLEMENTATION AND TRANSITION ARRANGEMENTS These School of Medicine procedures are developed in accordance with the Regents’ Plan approved for implementation July 1, 2012 and supersede any previous implementation. These departmental implementation guidelines are effective September 1, 2013. APPENDIX REQUIREMENTS FOR CONTINUATION OF THE INCOME LIMITATION ARRANGEMENTS Continuation of an individual employed or operating under Income Limitation Plan (ILP) arrangement policies requires that the ILP arrangement policies and practices are in conformance with legal requirements. To the extent that an individual’s practice fails to conform with either tax laws or Federal or State regulatory statutes, consultation shall occur with appropriate representatives of the campus regarding steps necessary to comply with tax laws and statutes governing physician reimbursement. Where such requirements cannot be met, the individual shall become a member of the Health Sciences Compensation Plan. Revised:  7/1/2014   UCSF  Department  of  Medicine  Compensation  Plan   Page 38 of 38   Faculty members operating under the ILP arrangement will continue to be subject to the provisions of the applicable University and School of Medicine policies and procedures and modifications regarding reporting and assessment of income approved by the Office of the President for operation under the 1977 Regental Plan. Revised:  7/1/2014   University  of  California   Department  of  Medicine   Implementation  Guideline  for  the  Health  Sciences  Compensation  Plan   APPENDIX       Table  of  Contents   I.     SPECIFIC  DEPARTMENTAL  COMMITMENTS  FOR  THE  VARIOUS  ACADEMIC  SERIES   .  1   1.     Ladder  Rank  (FTE)  ........................................................................................................  1   2.     In-­‐Residence  ................................................................................................................  2   3.     Clinical  “X”  ...................................................................................................................  2   4.     Clinical  .........................................................................................................................  3   5.     Adjunct  ........................................................................................................................  3   II.  ADDITIONAL  INFORMATION  ON  FACULTY  LEAVE  PLANS  ...........................................  4   1.     Illness/Disability  Leave  ..........................................................................................  4   III.     COMPLIANCE  WITH  THE  PROVISION,  DOCUMENTATION,  AND  BILLING  OF   CLINICAL  SERVICES  AND  WITH  THE  RESPONSIBLE  MANAGEMENT  OF  RESEARCH  AND   ACADEMIC  ACCOUNTS  .................................................................................................  4   I.   Documentation  and  Billing  of  Clinical  Services  ...............................................................  4   II.   Research  and  Academic  Accounts  ................................................................................  6   IV.  CLARIFICATION  OF  LOSS  OF  GOOD  STANDING  .........................................................  7   I.    Background  ......................................................................................................................  7   2.  Principles  .........................................................................................................................  7   3.  Departmental  Administrative  Review  Process  ..................................................................  8     I.     SPECIFIC  DEPARTMENTAL  COMMITMENTS  FOR  THE   VARIOUS  ACADEMIC  SERIES     1.     Ladder  Rank  (FTE)   Faculty  members  appointed  in  the  ladder  rank  (FTE)  series  have  continuous  funding   from  the  University  of  California  State  19900  budget.  Permanent  and  temporary   budget  reductions  have  resulted  in  funding  for  each  faculty  FTE  at  approximately   55%.  This  percentage  is  reviewed  annually  and  is  subject  to  change  based  on   increases  or  reductions  in  state  budget  allocations.  The  Department  credits  each   ladder  rank  faculty  member  with  approximately  55%,  or  the  revised  percentage,   unless  the  faculty  member  chooses  voluntarily  to  use  these  funds  for  purposes  other   than  their  salary.  Faculty  in  the  ladder  rank  series  must  hold  100%  appointments   Page  1     Revised  July  3,  2014   except  for  personal  health  reasons  or,  following  review  and  approval  by  the  chair,   vice  dean  and  vice  chancellor,  because  of  family  responsibilities.     2.     In-­‐Residence     In  accord  with  the  Report  of  UCSF  In-­‐Residence  Task  Force,  faculty  in  the  In-­‐ Residence  series  at  the  Associate  and  Full  Professor  ranks  may  have  appointments   with  no  specific  ending  date.  Their  appointments  are  contingent  upon  continuation   of  funding  and  may  be  converted  to  one  with  an  ending  date  as  a  result  of  budgetary   reasons,  programmatic  reasons,  and/or  lack  of  work.  UCSF  will  support   appointments  with  indefinite  end  dates  for  In-­‐Residence  faculty  at  the  Associate   Professor  and  full  Professor  ranks,  provided  that  at  the  time  of  appointment,  there  is   an  explicit  understanding  that  the  individual's  salary  support  does  not  involve   departmental  or  divisional  support,  unless  explicitly  committed  in  a  formal  letter  of   agreement  from  the  Department  Chair  or  Dean.       The  Department  follows  the  UCSF  In-­‐Residence  guideline  for  one  year  of  support  for   Associate  and  full  Professors.  Effective  7/1/10,  the  year  of  support  is  calculated  as  a   bank  of  support  equal  to  one  year  of  base  salary  (X  at  scale)  plus  fringe.  The  value  of   the  bank  is  established  in  the  first  year  of  use,  however,  any  remaining  bank  balance   will  inflate  annually  in  accord  with  any  COLA  or  merit  increments  and  is  available   for  use  in  future  years.  Any  prior  expenditures  from  the  bank  can  be  replenished  in   future  years  by  the  faculty  member.       Faculty  in  the  In-­‐  Residence  series  must  hold  100%  appointments  except  for   personal  health  reasons  or,  following  review  and  approval  by  the  chair,  vice  dean   and  vice  chancellor,  because  of  family  responsibilities.  When  continued   appointment  in  the  In-­‐Residence  series  is  not  possible,  conversion  to  an   appointment  in  a  non-­‐Senate  series  is  at  the  discretion  of  the  Department.     3.     Clinical  “X”     Appointments  in  the  Clinical  X  (e.g.,  Clinical  Professor  of  Medicine)  series  are  year-­‐ to-­‐year  appointments.  By  University  policy,  no  prior  notice  of  termination  is   required  if  an  appointment  is  scheduled  to  lapse  at  the  end  of  an  academic  year.     However,  the  Department  of  Medicine  will  follow  the  guidelines  below  for   terminating  a  position  (if  funding  sources  permit):     • Less  than  2  years  of  service:  may  be  given  a  minimum  of  6  months  notice   • Greater  than  2  years  of  service:  may  be  given  a  minimum  of  1  year  notice     Notice  may  be  in  the  form  of  termination  or  reduction  in  salary  to  the  level   supported  by  the  faculty  member.       Page  2     Revised  July  3,  2014   Faculty  in  the  Clinical  X  series  must  hold  100%  appointments  except  for  personal   health  reasons  or,  following  review  and  approval  by  the  chair,  vice  dean  and  vice   chancellor,  because  of  family  responsibilities.  When  continued  appointment  in  the   Clinical  X  series  is  not  possible,  conversion  to  a  non-­‐Senate  series  is  at  the  discretion   of  the  Department.     4.     Clinical       Appointments  in  the  Clinical  series  are  year-­‐to-­‐year  appointments.  By  University   policy,  no  prior  notice  of  termination  is  required  if  an  appointment  is  scheduled  to   lapse  at  the  end  of  an  academic  year.  However,  the  Department  of  Medicine  will   follow  the  guidelines  below  for  terminating  a  position  (if  funding  sources  permit):     • Less  than  2  years  of  service:  may  be  given  a  minimum  of  60  days  notice   • Greater  than  2  years  of  service:  may  be  given  a  minimum  of  90  days  notice     The  form  of  notice  may  be  termination  or  reduction  in  salary  to  the  level  supported   by  the  faculty  member.    Conversion  to  part-­‐time  status  will  be  at  the  discretion  of   the  Department.     5.     Adjunct     Appointments  in  the  Adjunct  series  are  year  to  year  appointments.  By  University   policy,  no  prior  notice  of  termination  is  required  if  an  appointment  is  scheduled  to   lapse  at  the  end  of  an  academic  year.    However,  the  Department  of  Medicine  will   follow  the  guidelines  below  for  terminating  a  position  (if  funding  sources  permit):     • Less  than  2  years  of  service:  may  be  given  a  minimum  of  60  days  notice   • Greater  than  2  years  of  service:  may  be  given  a  minimum  of  90  days   notice     The  form  of  notice  may  be  termination  or  reduction  in  salary  to  the  level  suggested   by  the  faculty  member.    Conversion  to  part-­‐time  status  will  be  at  the  discretion  of   the  Department.       Page  3     Revised  July  3,  2014   II.  ADDITIONAL  INFORMATION  ON  FACULTY  LEAVE  PLANS   1.     Illness/Disability  Leave   After  a  faculty  member's  illness/disability  leave  has  been  exhausted  (see  Section   C.1.e.,  Illness/Disability  Leave  in  Department  of  Medicine  Implementation   Guidelines),  the  faculty  member  will  need  to  rely  upon  employee-­‐paid  short-­‐term   University  disability  benefits  and/or  on  personally  funded  private  disability   insurance.  The  University's  current  plan  is  detailed  below.  The  terms  of  these   benefits  are  subject  to  change  and  are  not  within  the  control  of  the  Department  of   Medicine.   Disability  Plan  on  "  X  ":  The  University-­‐paid  disability  plan  pays  short-­‐term   benefits  up  to  55%  of  X  (maximum  is  $800/month)  for  up  to  six  months,  after  the   waiting  period  has  been  met.  For  more  specific  information,  please  see   http://atyourservice.ucop.edu/employees/health_welfare/index.html.   Disability  Plan  on  "  Y  ":  After  a  one-­‐year  waiting  period,  long  term  disability   (beyond  one  year)  is  a  University  paid  benefit  for  the  "  Y  "  portion  of  a  faculty   member's  salary  if  certain  conditions  have  been  met.    For  more  specific  information,   please  see  http://ucsfhr.ucsf.edu/index.php/benefits/article/health-­‐sciences-­‐ compensation-­‐plan/.   You  are  encouraged  to  review  your  personal  benefits  coverage.  Additional  details  on   these  plans  are  available  from  the  Department's  Academic  Affairs  Manager  or  at  the   websites  listed  above.       III.     COMPLIANCE  WITH  THE  PROVISION,   DOCUMENTATION,  AND  BILLING  OF  CLINICAL  SERVICES   AND  WITH  THE  RESPONSIBLE  MANAGEMENT  OF   RESEARCH  AND  ACADEMIC  ACCOUNTS     I.   Documentation  and  Billing  of  Clinical  Services     Faculty  members  who  participate  in  clinical  activities  under  the  auspices  of  the   Department  of  Medicine  at  the  University  of  California,  San  Francisco  (UCSF)  School   of  Medicine,  must  abide  by  all  rules  and  regulations  of  the  medical  staff  of  the   affiliated  hospitals  at  which  they  are  credentialed.           Page  4     Revised  July  3,  2014   A. Provision  of  care     1. In  performing  all  clinical  activities  faculty  members  will  exercise  the  clinical   skills,  judgment,  and  professionalism  expected  of  physicians  at  a  leading   medical  school  and  hospitals.   2. Recognizing  that  timeliness  is  critical  to  the  provision  of  medical  services,   faculty  members  are  required  to  respond  and  provide  requested  clinical   services  (both  in  the  inpatient  and  outpatient  services)  in  a  prompt  and   timely  manner.     B. Documentation  of  care     1. Faculty  members  have  a  legal  and  professional  responsibility  to  document   promptly  all  clinical  services  performed:    inpatient  notes  will  be  completed   within  24  hours  and  outpatient  notes  within  72  hours  of  the  provision  of   services.   2. Clinical  notes  should  be  clear  and  comprehensive,  thereby  facilitating  the   patient’s  care  and  subsequent  care  by  other  physicians.  (2)   3. Clinical  notes  will  be  written,  dictated  and  transcribed,  or  typed  consistent   with  the  templates  or  procedures  required  by  a  faculty  member’s  Division   and  Department.  If  patient  care  notes  are  in  an  electronic  format  or  are   transcribed,  the  faculty  member  will,  within  48  hours,  review  the  notes,   confirm  their  accuracy,  and  provide  an  appropriate  electronic  signature.     C. Billing  for  clinical  services     1. The  faculty  member  must  ensure  that  his/her  written  documentation   supports  the  level  of  service  provided.   2. Since  clinical  notes  are  the  basis  for  all  billing,  the  faculty  member  is   responsible  for  configuring  and  formatting  (in  terms  of  both  clarity  and   content)  the  note  to  expedite  the  billing  process.   3. The  generation  of  billing  codes  will  be  done  either  by  professional  coders  or   by  the  faculty  member,  as  per  Division  and  Department  policy.   4. The  faculty  member  will  abide  by  all  policies  regarding  discounts  and  charity   care  as  determined  by  the  UCSF  Medical  Group  or  the  appropriate  practice   group  at  the  affiliated  hospital(s).   5. The  Chief  of  the  Medical  Service  at  each  of  the  UC-­‐affiliated  hospitals  may   suspend  the  clinical  activities  of  any  faculty  member  who  has  violated  the   rules  and  regulations  of  the  Department  of  Medicine.  (1)       6. For  those  clinicians  who  fail  to  meet  the  documentation  requirements,  three   progressive  steps  will  be  taken:   § The  first  letter  from  the  Department  of  Medicine  Director  of  Clinical   Operations  and  Revenue  Management  will  inform  the  faculty  member  of   the  noncompliance  with  policy  and  recommend  immediate  action  to   correct  the  problem  (the  clinician’s  division  chief  will  be  notified  of  the   problem);   Page  5     Revised  July  3,  2014   If  the  problem  is  not  corrected  within  the  required  time  frame  proposed   in  the  initial  letter,  a  second  letter  from  the  clinician’s  division  chief  will   sent  to  the  clinician;   § If  the  problem  persists,  the  clinician  will  receive  a  third  and  final  letter   from  the  Chair.  For  clinicians  practicing  at  Parnassus/Mt.  Zion,  this  letter   will  be  copied  to  the  UCSF  Medical  Staff  Office.   7. If  the  faculty  member  is  not  in  compliance  with  the  UCSF  Department  of   Medicine’s  Health  Sciences  Compensation  Plan  (attached)  or  the  above   regulations,  any  projected  direct  loss  of  revenue  may,  at  the  discretion  of  the   Department  as  guided  by  its  Compensation  Plan  Advisory  Committee,  be   used  in  calculating  bonus  eligibility  and  future  salary.   8. Since  the  above  clinical  responsibilities  are  aspects  of  professional   competency,  the  faculty  member  recognizes  that  failure  to  meet  these   obligations  will  influence  decisions  regarding  academic  advancement,   reappointment,  and  all  other  academic  decisions  under  review  by  the   Department  of  Medicine’s  Executive  Promotions  Committee.   9. The  faculty  member  recognizes  that  if  issues  related  to  clinical  performance,   documentation,  or  billing  compliance  are  brought  to  the  Compensation  Plan   Advisory  Committee  or  the  Executive  Promotions  Committee,  the  faculty   member  will  have  the  right  to  submit  written  materials  and/or  appear  in   person  before  a  decision  is  rendered  by  these  committees.   §   II.   Research  and  Academic  Accounts     Faculty  members  are  responsible  for  managing  their  grants,  contracts,  and  other   academic  accounts.     Overdrafts  and  deficits     Any  deficit  incurred  by  any  grant,  contract,  or  other  academic  account  are  the   responsibility  of  the  faculty  member.     Compliance  and  oversight     1. Faculty  members  who  have  recurrent  issues  or  unresolved  deficits,  at  the   Department’s  discretion,  may  be   a. put  into  “receivership,”  whereby  the  faculty  member  will  no  longer  have   sign-­‐off  authority  on  any  account,  and  any  and  all  expenditures  must  be   approved  by  the  Department,  and/or   b. prohibited  from  submitting  new  grants  or  contracts  or  accepting  new  funds.     2. The  Department  can  and  will  use  other  funds  generated  by  or  in  any  accounts   held  by  the  faculty  member  to  offset  any  deficits  at  the  discretion  of  the   Department.     Page  6     Revised  July  3,  2014   If  you  have  any  questions  regarding  this  document  or  its  requirements  and   regulations,  please  contact  your  Division  Chief.    It  is  expected  by  the  Department  that   all  faculty  members  will  comply  with  these  requirements  and  regulations  or  be  subject   to  the  penalties  and  disciplinary  actions  associated  with  violations  of  the  provision,   documentation,  and  billing  of  clinical  services.    Such  actions  may  include,  but  are  not   limited  to,  adjustment  of  future  salary,  forfeiture  of  leadership  roles  with  the   department,  delayed  or  foregone  promotions  because  of  unprofessional  behavior,  and   non-­‐renewal  of  appointment.     References   1. UCSF  Medical  Staff  Bylaws,  Rules  and  Regulations;  Section   2.I.B.3(d)(i)   2. UCSF  Compliance  Manual;  Section  I.R     IV.  CLARIFICATION  OF  LOSS  OF  GOOD  STANDING     I.    Background     The  Department  of  Medicine  compensation  plan  describes  the  concept  of  “Good   Standing.”  It  establishes  criteria  for  situations  which  can  trigger  loss  of  good   standing  and  lists  potential  consequences  for  loss  of  good  standing.  It  also  describes   an  Administrative  Review  Process  to  resolve  situations  where  a  Plan  Participant   disagrees  with  a  determination  of  loss  of  good  standing  and/or  disagrees  with   whether  good  standing  has  been  restored.  The  process  outlines  the  roles  of  the   Department  Chair,  Dean,  and  SOM  Compensation  Plan  Advisory  Committee  in   adjudicating  disputes.     It  is  recognized  that  the  criteria  that  trigger  loss  of  good  standing  are  somewhat   ambiguous.    When  a  concern  about  a  Plan  Participant  is  identified,  determining  the   appropriateness  of  the  consequences  and  corrective  action  requires  review  of  the   seriousness  of  the  issue,  the  strength  of  the  evidence,  and  existence  of  prior  issues.         That  said,  this  document  is  intended  to  clarify,  to  the  extent  possible,  the   circumstances  that  would  trigger  loss  of  good  standing,  per  recommendations  made   by  the  SOM  Compensation  Plan  Advisory  Committee.     2.  Principles     Several  key  principles  were  recommended  by  the  DOM  Committee:   -­‐ Loss  of  good  standing  results  from  a  serious  concern  about  a  Plan   Participant.       o It  leads  to  loss  of  privileges  that  are  provided  in  the  compensation   plan,  including  reduction  in  compensation  and  restrictions  on  outside   Page  7     Revised  July  3,  2014   -­‐ -­‐ -­‐ -­‐   professional  activities.    Loss  of  good  standing  should  be  considered  a   “last  step”  once  other  options  or  corrective  actions  have  been   exhausted.     o Consequences  for  Plan  Participants  should  be  similar  to  those  for  staff   and  trainees.   The  formality  of  process  used  to  identify  the  problem  and  to  determine  the   severity  of  consequence  should  be  proportional  to  the  seriousness  of  the   problem.    For  example,  malfeasance  should  have  more  severe  consequences   than  low  productivity  or  failure  to  complete  encounter  forms.   Chronic  or  repeat  offenses  by  a  Plan  Participant,  or  failure  of  the  Plan   Participant  to  take  corrective  action,  should  result  in  escalating   consequences.     DOM  should  be  clear  in  communicating  expectations  to  the  Plan  Participant.   Loss  of  good  standing  is  not  the  same  as  loss  of  faculty  appointment,  though   loss  of  good  standing  could  be  a  precursor  to  losing  one’s  appointment.   3.  Departmental  Administrative  Review  Process     The  DOM  compensation  plan  outlines  an  Administrative  Review  process  when  there   is  disagreement  between  a  Plan  Participant  and  the  Department  Chair  related  to  the   determination  of  Good  Standing  of  that  Plan  Participant.    The  following  section   describes  the  review  process  for  concerns  about  fulfillment  of  faculty  duties  and/or   faculty  conduct  within  the  Department  of  Medicine  for  issues  as  identified  as   “minor”  or  mid-­‐level”  (as  described  above).     The  division  chief  holds  primary  responsibility  for  communicating  concerns  about   fulfillment  of  faculty  duties  and/or  faculty  conduct  to  the  Plan  Participant  and   determining  consequences.  The  division  chief  and  Plan  Participant  should  strive  for   informal  resolution  as  appropriate  to  the  circumstances,  with  a  specific  timeline  for   resolving  the  conflict  defined  by  the  division  chief.  The  chief  shall  prepare  a  written   document  that  summarizes  the  discussion;  a  copy  of  this  document  shall  be  given  to   the  Plan  Participant.  When  there  is  a  dispute  about  the  appropriateness  of  the   consequences,  the  Plan  Participant  may  contact  the  Department  Chair  for   resolution.  The  Department  Chair  will  determine  whether  the  issue  should  be   brought  for  review  by  the  DOM  Compensation  Plan  Advisory  Committee.         Page  8     Revised  July  3,  2014