School of Medicine: Clinical Department Faculty Compensation Plan

Unit Policy

Title

School of Medicine: Clinical Department Faculty Compensation Plan

Introduction

Purpose

This policy establishes the framework for how clinical faculty at the UNC School of Medicine are compensated, including the structure and components of salary, incentive payments, and non-salary compensation. It aims to balance flexibility with accountability by aligning faculty pay with mission-based productivity, market benchmarks, and the financial sustainability of clinical departments.

Scope

This policy primarily applies to faculty members appointed to clinical departments at the UNC School of Medicine — including tenured, tenure-track, and fixed-term faculty — as well as, in limited respects, Advanced Practice Providers (APPs) employed by the SOM who are credentialed for billing purposes.

Table of Contents

1. Purpose
2. Departmental Plans
3. Eligibility for Participation
4. Definitions
5. Eligibility for Compensation
6. Compensation
7. Appendices
   1. UNCFP Compensation Design Guiding Principles
   2. Basic Work Expectations Requirements
   3. UNCFP Work Standards
   4. Faculty Examples

I. Purpose

This Clinical Department Faculty Compensation Plan (this "Plan") sets forth the framework for remuneration of clinical faculty in the UNC School of Medicine ("UNC SOM"). This Plan updates the Clinical Faculty Compensation Plan originally approved by the UNC Board of Governors in January 1996 and most recently approved by the Chancellor in 2025, pursuant to the University's institutional plan for management flexibility to appoint and adjust compensation.

II. Departmental Plans Authorized

Each department of the UNC SOM ("Department") that has faculty subject to this Plan shall adopt a Departmental plan setting out in sufficient detail the Department's specific approach to implementing the compensation arrangements authorized by this Plan. As appropriate, with approval of the Department Chair, Departments may also adopt sub-plans regarding compensation related to the Department's Divisions and Services within the same timeframe as the Departmental plan. All Departmental and any sub-plans must comply with this Plan and all applicable University and UNC Health policy.

No Departmental or Divisional compensation plan, or any amendment of such a plan, may take effect unless first approved by the UNCFP Compensation Committee, the UNC - Chapel Hill Office of University Counsel, and the UNC - Chapel Hill SOM Dean or Dean's designee. The Chair of each Department shall be responsible for implementing the Departmental and Divisional compensation plans, and shall inform the Department's faculty in writing of the plans no less often than annually.

See Appendix A for the strategic goals, guiding principles, and benchmark standards with which Departmental compensation plans must align ("UNCFP Compensation Design Guiding Principles").

III. Eligibility for Participation

Faculty members appointed to clinical departments in the UNC SOM are required to participate in this Plan, through their Department's plan adopted hereunder. This Plan applies to all tenured, tenure track, and fixed-term faculty in clinical departments, unless otherwise specified in the terms of their letters of appointment.¹

To be paid Variable or Incentive compensation, a faculty member must be employed by the University on the date the Variable or Incentive compensation is paid, except for circumstances in which a faculty member has retired in accordance with University policy and such payment is approved by Chair.

For special categories of faculty employees, including but not limited to visiting faculty, part-time faculty, and faculty who are hired on the assumption that their employment will be temporary, a Chair may, with approval of the Executive Dean, determine at appointment that the faculty member's compensation will be determined independent of the provisions of this Plan, provided any alternate compensation methodology is clearly documented, communicated to the relevant faculty member, and is consistent with institutional policy and applicable law.

If a faculty member's duties change significantly, the faculty member may, with agreement of the Chair, convert from this Plan to the SOM Basic Science Faculty Compensation Plan, or from that plan to this Plan (subject to the foregoing provision regarding special categories of faculty employees). In such cases, the faculty member's Annual Base Salary may be adjusted to reflect assigned duties. If a faculty member loses, relinquishes, or is otherwise unable to maintain required clinical privileges, resulting in a reduction or elimination of clinical duties, the faculty member's compensation shall be adjusted accordingly to reflect the revised scope of duties.

Where a faculty member converts from this Plan to the SOM Basic Science Faculty Compensation Plan, reinstatement of the faculty member to coverage by this Plan shall be within the discretion of the Chair, in consultation with the UNCFP President.

UNCFP Statewide faculty are subject to UNC Health compensation policies and guidelines. Departments are responsible for developing the compensation plans for UNCFP Statewide faculty and administering such compensation plans consistent with UNC Health policies. UNCFP Statewide faculty and the UNCFP Statewide faculty compensation plans are not subject to this SOM Plan.

Advanced Practice Providers ("APPs") employed by the SOM who are credentialed for billing purposes are eligible, at the discretion of the Chair, to participate in the incentive component of their Departmental plan adopted hereunder. Each Department may develop a specific plan for its APPs or use its standard methodology; however, any APP incentive compensation methodology must be set in advance of the applicable fiscal year, set forth in the Departmental plan, and otherwise consistent with this Plan. APPs employed by UNC Health and enrolled to bill under UNCFP will be subject to the UNC Health incentive compensation plan applicable to employees of UNC Health. UNC Health, in coordination with a Department, may develop and approve a specific incentive compensation plan for APPs employed by UNC Health, the terms of which will be in writing and communicated to eligible APPs.

IV. Definitions

V. Eligibility for Compensation

To be eligible for compensation under this Plan, a faculty member must fulfill both FPWS and BWE. Failure to meet either BWE or FPWS shall subject a faculty member to remedial measures for that fiscal year, including, but not limited to reducing or withholding: Y: Variable Compensation, Z: Incentive Compensation – Clinical Production, and Z: Incentive Compensation – Mission Compensation. An individual's failure to meet either BWE or FPWS will not result in a reduction in their X: Fixed Compensation for that fiscal year.

However, if a faculty member fails to fulfill BWE and/or FPWS, the Department must review and may reduce the faculty member's X: Fixed Compensation and Y: Variable Compensation at the next annual cycle, in consultation with the UNCFP President and the Office of University Counsel.

Ramp-Up: A Department may grant a total target compensation guarantee for new faculty, not to exceed 3 years, to allow for ramp-up. In the event a Chair grants a total target compensation guarantee period for a new faculty member, the offer letter or other documentation must set forth specific mission-based targets for the faculty member to meet during the ramp-up period. New faculty who exceed defined targets during the ramp-up period will be eligible to additionally receive Z: Incentive Compensation – Clinical Production and Z: Incentive Compensation – Mission Compensation as determined by the methodology of their Department's plan, provided total cash compensation remains within fair market value. The faculty member must be employed at the time when the Y or Z components of compensation are paid to other faculty members of the Department in order to receive the guaranteed variable compensation included in the ramp-up or any earned Z components of compensation.

VI. Compensation

A. Total Target Compensation

The total target compensation for clinical faculty members comprises the fixed and variable compensation components (X + Y). Faculty may earn above the total target compensation by exceeding clinical production expectations, by receiving extra-duty payments for clinical work above minimum expectations, or by receiving extra mission incentive.

1. The total target compensation will be based on national benchmark data, considering the individual's or group's previous year's production. The UNCFP Compensation Committee may set additional standards by which Departments will establish total target compensation. The UNCFP Compensation Committee may approve exceptions to standards at the request of the UNCFP President, UNC Health Chief Clinical Officer, Executive Dean of the SOM, or the Chair where a mission critical role is needed or where justified by the market. The Committee may also approve a group exception where the Committee determines it is warranted by the market.

2. The total target compensation will include standard work expectations for both clinical and academic work.

3. Faculty with less than 0.35 clinical FTE will have their total target compensation (X + Y) determined based on their administrative and/or academic expectations, in addition to clinical production. These faculty members will still be eligible for the incentive component (Z), if clinical productivity exceeds defined thresholds, or they are eligible for extra-duty compensation, subject to the cap described below in section VI.D.

B. X: Fixed Compensation

Fixed compensation is the portion of total target compensation that is tied to defined UNCFP and Departmental employment expectations. Fixed compensation is set at the beginning of each fiscal year based on the SOM Plan and the faculty member's prior fiscal year's performance. Any adjustment to fixed compensation will be considered on an annual basis. Fixed compensation will usually range from 70% to 90% of total target compensation, dependent on specialty-specific market data.

C. Y: Variable Compensation

Variable compensation is the portion of total target compensation that recognizes faculty members for their performance based on relevant, achievable metrics that are defined and set within the Departmental compensation plan.

The metrics should include clinical and academic elements to ensure the tripartite mission is recognized. Variable compensation usually ranges from 10% to 30% of total target compensation, depending inversely on the percentage of fixed compensation set in total target compensation. For a faculty member to receive the full amount of variable compensation, they must achieve the gateway metric (defined below) and the defined metrics within their corresponding clinical Department compensation plan.

i. Gateway (Production-Based)

Variable compensation will include an individual productivity target gateway that is aligned with total target compensation, national standards, and academic metrics to ensure the tripartite mission is recognized.

1. Faculty must achieve their wRVU productivity target to be eligible for the full amount of Y, even if all other applicable metrics are fully satisfied.

2. Faculty members who do not achieve their wRVU productivity target will be eligible to receive a prorated Y component. Provided the faculty member's actual productivity percentile exceeds their total target compensation percentile, the prorated amount will be calculated by dividing: (i) the difference between the target productivity percentile and faculty member's actual productivity percentile; by (ii) the difference between the faculty member's target productivity percentile and the faculty member's total target compensation percentile. For example, if a faculty member's prorated calculation equals 2/3, then the faculty member would receive 66.67% of their total Y opportunity.

ii. Gateway (Shift-Based)

Variable compensation will include an individual shift productivity target aligned with the expected shifts for the relevant specialty. Faculty who fail to meet minimum shift expectations will not be eligible for Y compensation.

1. UNCFP recognizes that some faculty may not fully achieve the individual shift productivity target. Those faculty members will be eligible to receive a prorated Y component.

iii. Gateway (Group-Based)

Variable compensation will include a group-based productivity target aligned with the expected productivity of the group for the relevant specialty. Groups who fail to meet minimum productivity expectations will not be eligible for Y compensation.

1. UNCFP recognizes that some groups may not fully achieve the group productivity target. The faculty members of that group will be eligible to receive a prorated group Y component.

iv. Reduction in Y

If an individual faculty member (or in the limited cases a department or division level compensation is used) does not achieve 90% of their productivity targets for the fiscal year, for salary setting for the subsequent year, the total dollars available for Y: Variable Compensation will be reduced by 50%. If 90% of productivity targets are not achieved the following year, there will be an additional 50% reduction in Y: Variable Compensation. If greater than 90% and less than 100% of the productivity target is met, there will not be an adjustment to the amount of Y: Variable Compensation in the subsequent year that would otherwise be available to the faculty member.

If after two years of the individual faculty member (or in the limited cases a department or division level compensation is used) does not achieve 90% of their productivity targets, X: Fixed Compensation and Y: Variable Compensation will be reset to align to a new productivity target. As in all reviews of the compensation plan, the most recent benchmarks (3-year rolling average) will be used to set new compensation and productivity values.

1. For Example:

   Y: Variable Compensation Reduction Example

   Fiscal Year	X	Y	TTC	wRVU Target	wRVU Achieved
   27	$250,000	$25,000	$275,000	5000	4750 (95% of target)
   28	$250,000	$25,000	$275,500	5000	4400 (88% of target)
   29	$250,000	$12,250	$262,500	5000	4400 (88% of target)
   30	Use new rolling average for X based on 15-point lag of productivity		New Y based on X

D. Z: Incentive Compensation – Clinical Production

Incentive compensation is the portion of Total Cash Compensation (TCC) that recognizes faculty members for clinical work above and beyond baseline clinical work expectations as defined by the clinical Department compensation plan. Faculty members are eligible for incentive compensation once they have achieved standard clinical work expectations (i.e., met their individual wRVU threshold). Incentive compensation is paid on a dollar per wRVU basis, pursuant to an annually determined wRVU threshold and wRVU rate, calculated by the following methodology. For faculty with 0.35 or greater clinical FTEs (or a group-based model where appropriate), the incentive component (Z) will be capped at 100% of the 90th percentile production benchmark for FY27 and uncapped after FY27. For faculty with less than 0.35 clinical FTEs, the incentive component (Z) will be capped at 100% of the 90th percentile production benchmark in every fiscal year. In addition, on an annual basis, UNCFP will evaluate the availability of additional funds to support academic incentives and will distribute any such funds to Departments for the purpose of awarding compensation in recognition of academic effort.

i. Production-Based

1. The wRVU threshold for individuals is based on benchmark productivity data, considering the total target compensation percentile, and other factors as determined by the UNCFP Compensation Committee (e.g., market competitiveness, UNCFP resources, mission-related goals). Departments will inform faculty of their wRVU threshold for the year. Productivity thresholds are adjusted per cFTE.

   1. Departments will establish and communicate wRVU rates for each specialty by dividing the most recent 3-year rolling average of AAMC National specialty-specific associate professor median compensation * 0.8 by the most recent 3-year rolling average of Vizient specialty-specific 65th percentile wRVUs. This calculation will be verified by the UNCFP Compensation Committee annually.

   2. For example, if the most recent 3-year rolling average of AAMC associate professor median compensation is $400,000 and the most recent 3-year rolling average of Vizient (CPSC) 65th production is 8,000 wRVUs, the wRVU rate would be calculated as follows:

      $400,000 ÷ 8,000 wRVUs * 0.8 = $40.00

2. Faculty members are compensated for each personally-performed wRVU exceeding their individual threshold by multiplying the incremental wRVUs by the wRVU rate.

   1. For example, if the total wRVUs are 6,500, the wRVU threshold is 5,685 wRVUs, and the wRVU rate is $40.00, the incentive compensation would be calculated as follows:

      (6,500 wRVUs – 5,685 wRVUs) × $40.00 = $32,600.

ii. Group-Based

This is applicable for group-based specialties and rare circumstances where production-based specialties warrant a group-based approach.

1. The wRVU threshold for group-based specialties is based on benchmark productivity data, considering the total target compensation percentile, and other factors as determined by the UNCFP Compensation Committee (e.g., market competitiveness, UNCFP resources, mission-related goals). The wRVU threshold will account for the total cFTEs necessary to operate in the applicable department or division, inclusive of current vacancies. Departments will inform faculty of the wRVU threshold for the year.

2. Departments will establish and communicate wRVU rates for each specialty by dividing the most recent 3-year rolling average of AAMC National specialty-specific associate professor median compensation * 0.8 by the most recent 3-year rolling average of Vizient specialty-specific 65th percentile wRVUs.

   1. For example, if the most recent 3-year rolling average of AAMC associate professor median compensation is $400,000 and most recent 3-year rolling average of Vizient (CPSC) 65th production is 8,000 wRVUs, the wRVU rate would be calculated as follows:

      $400,0000 ÷ 8,000 wRVUs * 0.8 = $40.00

3. Faculty members are compensated for each wRVU exceeding the group threshold by multiplying the incremental wRVUs by the wRVU rate.

   1. For example, in a division of 10 clinical FTEs if the total group wRVUs are 65,000, the wRVU threshold is 56,850 wRVUs, and the wRVU rate is $40.00, the incentive compensation would be calculated as follows:

      (65,000 wRVUs – 56,850 wRVUs) × $40.00 = $326,000 Z incentive pool

   2. Please note that the contributing wRVUs will be capped at 100% of 90th percentile productivity at the individual level for those individuals below 0.35 cFTE. For individuals with a cFTE of 0.35 cFTE and above, the wRVUs will be capped at 100% of the 90th percentile productivity in FY27 and then uncapped in subsequent years.

4. The compensation pool is divided among faculty based on their clinical contributions to the group (e.g. number of shifts worked, cFTE, etc.) A per capita distribution not tied to individual clinical contributions is not permissible.

   1. If a group does not exceed the wRVU threshold as a group, then no Z will be distributed.

E. Z: Incentive Compensation – Mission Compensation

At the end of each fiscal year, pending budgetary allowances and UNCFP President approval, a Mission Support Z will be provided to department chairs to distribute based on pre-determined metrics in the departmental compensation plans.

F. Z: Extra Duty Payments ("EDP")

EDP are made to a faculty member in consideration of specific, non-recurring, variable duties (e.g., provision of additional call when coverage is needed, generally due to an unexpected vacancy, new revenue, or other unexpected situations) and approved by Chair.

EDP must be documented in writing and may be addressed through an Extended Clinical Care ("ECC") Agreement between the relevant clinical department and the UNC - Chapel Hill SOM Office of Human Resources. Clinical departments must outline eligibility for EDP and the policies for approving EDP within department compensation plans.

G. Supplemental Pay

Supplemental Pay is available for at-will supplemental administrative appointments that are agreed upon by the Chair, Dean, Provost or other leadership providing the supplemental administrative appointment, as applicable. Supplemental Pay must be discontinued when the specific duty that it recognizes ends. Supplemental Pay is separate and distinct from Annual Base Salary, EDPs, and Incentive Payment. Supplemental Pay is a component of total cash compensation. Supplemental Pay is for duties separate and distinct from UNCFP Work Standards (FPWS) or Base Work Expectations (BWEs).

All compensation paid pursuant to this Plan and Departmental plans adopted hereunder will be: (i) in accordance with methodologies that are defined and set in advance of the start of the fiscal year (i.e., July 1); (ii) consistent with fair market value and commercial reasonableness standards, as defined under applicable federal healthcare laws and regulations; (iii) not vary with, or take into account, the volume or value of referrals a faculty member makes within the Department or UNCFP, to UNC Hospitals, to any UNC Health affiliate, or to any unaffiliated health care entity with which the Department has a contractual or other financial arrangement; and (iv) not vary based solely upon receipt or termination of a federally sponsored research grant.

Note: Compensation components are not to scale.

Appendix A: UNCFP Compensation Design Guiding Principles

UNCFP leadership, in consultation with the clinical chairs, has developed the following set of strategic goals and guiding principles with which Department compensation plans must align.

A. Aligned with Missions and Values

Departmental compensation plans must align with and support the mission and values of the individual departments, UNC - Chapel Hill SOM, UNC Health, and UNCFP.

1. Departmental compensation plans should appropriately reward clinical and academic effort, as available per funding stream and organizational support.
2. Performance metrics should be based on individual performance. Group performance metrics may be utilized in specific cases where market comparisons warrant such an approach and as approved by the UNCFP Compensation Committee.
3. Departmental compensation plans may be set at the department and/or division level.
4. All applicable codes of conduct and policies established by UNC Health and UNC - Chapel Hill SOM must be followed.
5. Clear standards or guidelines should be established for internally funded research, administrative, and educational/teaching efforts. Additional guidelines are necessary to determine when roles should be funded through FTE buy-down or stipends.
   1. Additional information is in development for implementation in subsequent fiscal years.
6. Clear guidelines or standards should be established to determine when research, teaching, and/or administrative responsibilities justify cost-sharing (i.e., making a faculty salary whole) versus when compensation should be limited to specific funding.
   1. Additional information is in development for implementation in subsequent fiscal years.
7. Faculty members who exceed the 90th percentile in productivity should have their practices evaluated to ensure production levels are reasonable, quality of care is maintained, and physician burnout is avoided.
8. Faculty members are permitted to engage in external clinical work (e.g., moonlighting) in accordance with existing guidelines, provided they meet their UNCFP base work expectations (e.g., required number of shifts/hours or wRVUs) and receive approval from the chair.

B. Benchmark Driven

Departmental compensation plans must define and reward clinical and academic effort based on national benchmarks. Clinical productivity for a specialty will be defined by individual departments and service lines as appropriate. Departmental compensation plans will include time- and/or productivity-based requirements, with both components aligning with national standards that most closely align with a provider's specialty/subspecialty as available and approved by the UNCFP Compensation Committee.

i. Compensation

Compensation will be benchmarked against the most appropriate specialty- and rank-specific Association of American Medical Colleges (AAMC) Faculty Salary Report: Compensation by Medical School Type, All Combinations benchmarks using national-level data.

1. The most recent three-year rolling average of these benchmarks is used to reduce the impact of fluctuations in the annual data.
2. Compensation benchmarks will be updated annually following publication of the most recent benchmarks.
3. UNCFP recognizes that the AAMC Faculty Salary Report will sometimes lack subspecialty data for compensation. For subspecialties where benchmark data is not available, UNCFP will evaluate additional benchmarks to determine either an appropriate adjustment factor or blend of specialties listed in AAMC.
   1. For example, if the AAMC data does not provide a pediatric benchmark for a specialty, but the market has a 5% premium (or discount) based on other market sources, the 5% premium (or discount) will be applied to AAMC data.
   2. Additionally, if the AAMC data does not provide a certain specialty, it may be determined that a blend of multiple AAMC specialties is the most appropriate approach. In that case, UNCFP and the impacted department leadership will calculate a specialty blend by using a simple average of the identified specialty's three-year AAMC average blend.
4. Additionally, in limited cases, the AAMC Faculty Salary Report may be deemed insufficient due to significant external market changes or lack of subspecialty data. In those instances, outside benchmark sources may be approved for use, once they are evaluated for:
   1. Consistency in reporting.
   2. Ease of access to update the benchmarks annually.
   3. Number of specialty or subspecialty respondents (must be sufficiently robust to warrant use).

ii. Production

For most specialties, clinical wRVU production will be benchmarked against the most appropriate specialty-specific national data available from the AAMC - Vizient Clinical Practice Solutions Center (CPSC).

1. The most recent three-year rolling average of these benchmarks is used to reduce the impact of fluctuations in the annual data.
2. Productivity benchmarks will be updated annually following publication of the most recent benchmarks.
3. Additionally, in limited cases, the AAMC - Vizient CPSC benchmarks may be deemed insufficient due to significant external market changes or lack of subspecialty data. In those instances, outside benchmarks sources may be approved for use, once they are evaluated for:
   1. Consistency in reporting.
   2. Ease of access to update benchmarks annually.
   3. Number of specialty or subspecialty respondents (must be sufficiently robust to warrant use).

iii. Exceptions

Any change from the identified benchmark sources listed above must be approved by the UNCFP President in consultation with the Executive Dean of the UNC - Chapel Hill SOM, UNC Health Chief Clinical Officer, and UNCFP Compensation Committee. Once approved, Departments will communicate their chosen annual survey data and/or updates to the UNC - Chapel Hill SOM Human Resources Office and to the UNC - Chapel Hill SOM Finance and Business Office.

ii. A standard percentile point lag will be implemented over FY27 and FY28. This concept will be applied to wRVUs or hours or shifts, as appropriate, across specialties, unless an exception has been approved by the UNCFP President, UNC Health Chief Clinical Officer, and UNC - Chapel Hill SOM Executive Dean.

iii. The lag will be evaluated at the individual-provider level, except for group-based models as approved by the UNCFP Compensation Committee.

iv. No Immediate Salary Reductions

Providers with a compensation-to-productivity lag below target lag will not see a monthly base salary decrease in FY27; however, providers who do not meet these productivity standards may have the Y component of their total target compensation adjusted beginning in FY28.

C. Clear and Consistent

Departmental compensation plans should be clear and consistent to ensure fairness and reduce the administrative burden.

1. Total target compensation (X+Y) will align with base work expectations and market standards.
2. Academic promotion salary adjustments will be made during the academic or fiscal year, based on when the promotion occurs.
3. Departments will have individual plans as applicable to include a clinical plan, a basic science plan³, and a non-physician clinical plan.
4. Departmental compensation plans should be easy to understand and readily available to those impacted.
5. In determining Total Target Compensation, the Y component (variable) will have clearly defined clinical and academic metrics that must be met as a gateway to distribute variable funds, set by each department.
6. The Z component (incentive compensation – clinical production) will be earned if the faculty member exceeds their productivity benchmark wRVUs target.
7. The Z component (incentive compensation – mission compensation) will be used to support mission critical work that is provided by a department or division or faculty member as determined by the Chair.
8. Payout frequency for the Y component (variable) should occur no more than two times per year. Payout frequency for the Z component (incentive compensation – clinical production and/or incentive compensation – mission compensation) should occur no more than one time per year. Payout for the Z component (extra duty payment) should occur no more than four times a year.
9. Faculty with no clinical FTE allocation (i.e., physician scientists or those who are research intensive) should be on the Basic Science Faculty Compensation Plan.
10. Compensation plans must be written and formally approved.
11. Departmental compensation plans will be reviewed annually to ensure relevant performance metrics, market competitiveness, and financial sustainability.
12. Faculty members will be informed periodically on their performance related to relevant metrics.
13. Each department must have a written procedure for exceptions to the Departmental plan that includes a process for seeking approval by the UNCFP Compensation Committee.

Appendix B: Basic Work Expectations Requirements

Fulfillment of BWE means that a faculty member has satisfactorily performed their job for the year. BWEs are separate and distinct expectations than those activities assigned to faculty for which Supplemental Pay is awarded.

Departments must clearly delineate and set BWE metrics prior to the beginning of the fiscal year. Department Chairs (or designees) must communicate BWEs to each faculty member in advance of the fiscal year and may meet with them in determining specific obligations and work requirements for their BWEs. Each faculty member's BWE must be tailored to account for that individual's involvement in clinical care, administration, research, and education, recognizing that a faculty member's effort and work assignment may not be spread equally across all areas.

Any faculty leave granted under UNC - Chapel Hill policy and Department-established time for professional development activities beyond BWEs and FPWS (such as extraordinary mission activities) will be managed by the Department. Each Department is expected to develop and document the time allocated to professional development and other activities beyond BWEs and FPWS, which will be communicated to faculty in advance. All such time will be prorated based on a faculty member's FTE.

In the event a faculty member takes protected leave or is granted an accommodation that impacts their productivity or work schedule, potential adjustments to BWEs and salary, if appropriate, will be addressed in accordance with applicable law and University policy.

A. Base Clinical Standards

The base clinical productivity standard metric established by the Chair or their designee must correspond with clinical FTE, as described above. This includes, but is not limited to, wRVU targets or shift targets as determined by national benchmarks and the Chair. Though the amounts vary by Department, some level of additional or unexpected coverage is generally a component of BWE. Additional or unexpected coverage duty compensated by EDPs must be significantly above the normal faculty expectation accounted for in BWE.⁴

B. Base Administration Standards

Chairs or Division Chiefs, as applicable, are required to establish base administration expectations for faculty members who have administrative time designated as part of their FTE. These base work expectations will vary with and should pertain to the administrative duties to which the faculty member is assigned.

C. Base Research Standards

The base research or academic standards established by Departments should coincide with the amount of time a faculty member is supported by extramural and intramural grants and other research support (i.e., the amount of time allocated for these efforts should be commensurate with the faculty member's percent effort assigned to grant funding and other clearly documented and allocated time with the Chair). Recognized scholarly activity should also include publishing, presenting, or distributing scholarly work. Faculty members with a dedicated research component of their FTE are required to have a percentage of that time expected to be covered by extramural or intramural grant funding, as well as clear expectations regarding standards for appropriate activity (e.g., an expectation of funded grants, manuscripts, grant applications, published papers, etc.). This percentage of their research time that must be covered will be determined by the Chair or Division Chief, who are responsible for setting definable metrics about dedicated research time. Such physician investigators should be required to cover an expected portion of their Annual Base Salary (or of the NIH cap if their Annual Base Salary exceeds the NIH cap) that is related to their defined research effort. This metric is only one metric used. If the required funding level is not met or maintained during the course of the year, this will be considered together with other metrics of the faculty member's research productivity (e.g., papers, presentations) when reviewing for compensation-related implications. In the event of an anticipated or actual shortfall, the Department may bridge the shortfall for a period of up to one year. At the conclusion of such a period, the faculty member will be expected either to resume sufficient clinical effort to support their compensation level or to accept a corresponding adjustment in compensation.

D. Base Education Standards

Chairs or their designee (or Division Chiefs, as applicable) are required to establish one or more base education standards for all faculty members, over and above the FPWS requirement. In limited circumstances (e.g., in the case of faculty deployed 100% time staffing an offsite clinical contract, FP Statewide Faculty), the Chair or Chair's designee Chief may exclude a faculty member from base education standard requirements.

Appendix C: UNCFP Work Standards

The UNC SOM is committed to promoting an inclusive and respectful environment that supports institutional compliance with applicable laws and regulations. It is therefore expected that all faculty will adhere to all applicable UNC - Chapel Hill and UNC Health policies, which include but are not limited to the following standards:

1. Maintains timely and appropriate credentialing, licensure, and hospital appointment(s).
2. Speaks and acts towards patients, families, colleagues and staff in a respectful manner, and upholds our mission to improve the health and wellbeing of North Carolinians and others whom we serve through excellence in patient care, education, and research by:
   1. Promoting health and providing superb clinical care while maintaining our strong tradition of reaching underserved populations and reducing health disparities across North Carolina and beyond.
   2. Preparing tomorrow's health care professionals and biomedical researchers by facilitating learning with outstanding teaching and research faculty, innovative and integrated curricula, and team-oriented interprofessional education.
   3. Developing and supporting a rich array of outstanding health sciences research programs, centers, and resources by providing infrastructure and opportunities for collaboration amongst disciplines throughout and beyond UNC - Chapel Hill to support outstanding research. We will foster programs in the areas of basic, translational, mechanistic and population research.
3. Engages in professional behavior consistent with UNC - Chapel Hill SOM & UNCFP philosophy of teamwork as a basis of patient care.
4. Serves on regularly scheduled committees, as requested by Chair/Division Chief/Director.
5. Regularly attends unit meetings and departmental activities consistent with department policy.
6. Meets all applicable standards related to finance, compliance, coding, research, and documentation.
7. Performs education responsibilities consistent with UNC - Chapel Hill SOM guidelines as set by and agreed upon with Chair/Division Chief/Director.
8. Attends scheduled patient care activities on time unless adequate advance notice is provided per departmental guidelines.
9. Adheres to the following policies:
   1. UNC Health Disruptive and Inappropriate Health Care Team Member Behavior Policy
   2. UNC - Chapel Hill Policy on Prohibited Discrimination, Harassment and Related Misconduct including Sexual and Gender Based Harassment, Sexual Violence, Interpersonal Violence and Stalking
   3. UNC - Chapel Hill Violence in the Workplace Policy
   4. UNC Health Code of Conduct
   5. UNCFP Health Affairs Code (UNC - Chapel Hill Faculty Affairs Code, Appendix A)
   6. UNC - Chapel Hill Policy on Individual Conflicts of Interest and Commitment
   7. UNC - Chapel Hill Policy on External Professional Activities of Faculty and Other Professional Staff
   8. Trustee Policies and Regulations Governing Academic Tenure in the University of North Carolina at Chapel Hill; and Guidelines for Appointment, Reappointment and Promotion of Faculty of the School of Medicine at the University of North Carolina at Chapel Hill
   9. UNC Health Policy on Vendor Relations
   10. UNC - Chapel Hill Policy SOM Policy on Medical-Legal Activities
10. Follows UNC Health and UNC - Chapel Hill policies and institutional requirements that relate to:
    1. Documentation guidelines for timely documentation of clinical services (e.g., timely closing of encounters, dictation of operative reports, dictation of discharge summaries, etc.), including, and without limitation, UNC Health Care System Policy, "Inclusion of Documentation Completion Criteria within Provider Compensation Plans" and any conforming, supplemental UNCFP policy regarding, "UNCFP Standards for Timely Documentation of Open Charts" (collectively, "Documentation Policies") that may be adopted or amended from time to time.
    2. HIPAA Compliance
    3. Time Trex and Effort Reporting
    4. Employee Health Requirements
    5. Compliance Office Training
    6. Finance (e.g., travel policies)
    7. Institutional Quality and Performance Improvement Programs

If it is reasonably determined by the Chair, Division Chief or other applicable administrative unit (e.g., the University Compliance Office; Professional Compliance) that a faculty member has committed a material violation of one or more of these or any other applicable policies or requirements, the Y: Variable Compensation, Z: Incentive Compensation – Clinical Production, and Z: Incentive Compensation – Mission Compensation that the faculty might have otherwise earned under the relevant Departmental methodology will be reduced or withheld. For purposes of timing, Y: Variable Compensation, Z: Incentive Compensation – Clinical Production, and Z: Incentive Compensation – Mission Compensation shall be suspended during the pendency of an investigation into a policy violation, with the payment or final withholding/reduction of any Y: Variable Compensation: Incentive Compensation – Clinical Production, and Z: Incentive Compensation – Mission Compensation to be made following (and consistent with) the final determination resulting from such investigation. A faculty member found to be in violation of the listed policies must receive a reduction or withhold of some amount of Y: Variable Compensation, Z: Incentive Compensation – Clinical Production, and Z: Incentive Compensation – Mission Compensation. When Y: Variable Compensation, Z: Incentive Compensation – Clinical Production, and Z: Incentive Compensation – Mission Compensation is reduced or withheld, such amounts are determined by the Department Chair and the UNCFP President after consultation with the Professionalism Executive Committee.

Appendix D: Faculty Examples

To demonstrate the dynamics of the Clinical Department plan, please see the scenarios below (figures are for illustrative purposes only).

Footnotes

1. Appointment letters for SOM clinical faculty shall include a statement that their compensation shall be set as provided by this Plan and the relevant Department plan adopted thereunder, unless otherwise specified. ↩
2. The UNC Board of Governors annually approves salary caps for School of Medicine clinical faculty, by Department. Faculty salaries (inclusive of all components of salary compensation: annual base salary, supplemental pay, one-time payments and incentive) cannot exceed the stated caps without permission of UNC General Administration. ↩
3. The SOM Basic Science Faculty Compensation Plan is available at: http://academicpersonnel.unc.edu/files/2013/02/ccm3_032042.pdf ↩
4. For Departments where night and weekend call coverage has historically been excluded from BWEs, EDPs may be utilized regularly for call coverage needs. ↩

Contact Information

Primary Contact

Office: UNC SOM Office of Faculty Affairs and Leadership Development

Telephone: 919-966-8622

Email: facultyaffairs@med.unc.edu