Payment of Time Off in the DFM Physician Compensation

Payment of Time-Off in the DFM Physician Compensation Plan UW Department of Family Medicine Effective November 1, 2005 Draft Approved by DFM Compensation Committee on 9/21/05 Final Version Approved by DFM Compensation Committee on 5/10/06 Revision Approved by DFM Compensation Committee on 10/10/07 Scope: This policy applies to physicians on the Department of Family Medicine Physician Compensation Plan, to the portion of their FTE subject to the Physician Compensation Plan. This policy does not apply to Milwaukee faculty. Purpose: • Outline payment of time off in the DFM Physician Compensation Plan. Background: • • • • The department has a physician compensation plan that applies to CHS and CT track faculty. Faculty on the Physician Compensation Plan are employed by and paid by two entities UW-Madison UW Medical Foundation (UWMF) Compensation through UW-Madison is a fixed annual amount that is typically increased annually as part of the UW-Madison budget process. This compensation is also adjusted for changes in status (i.e. from 100% to 80%). Compensation through UWMF is the total compensation per the Physician Compensation Plan less the compensation paid through UW-Madison. Total compensation is calculated each fiscal year (ending June 30th) according to the provisions of the plan. This calculation includes various incentives that are tied to clinical productivity and other benchmarks. Total compensation estimates are calculated during the fiscal year, and paid monthly, subject to a 5% withhold. Total compensation is recalculated after the fiscal year is over. The Compensation and Finance Committees determine what percentage of the total calculated amounts will be paid out for the fiscal year. This has ranged from 92% to 100% since the inception of the current plan on January 1, 2002. The same percentage is used for everyone on the plan. Physicians receive additional money or pay back money, through their UWMF paycheck, for the difference between the final total compensation amounts and the amounts paid during the fiscal year. Applicable Rules: • Paid Time off: Physicians earn paid time off (PTO), including vacation, sick and floating holiday time, as part of their UW-Madison employment. We are required to pay the UW-Madison salary for time off to the extent that available PTO balances are used to cover the time in accordance with applicable University policies. University policies place limits on the use of this time, such as how much sick time can be used for a maternity leave. If additional time off is taken beyond applicable limits or after PTO balances are exhausted, no UW-Madison salary is paid. There is not a paid time off benefit related to UWMF employment, with one exception. UWMF has a “parental leave” benefit, which provides 2/3 of UWMF compensation for six weeks, up to a maximum of $10,000, for parental leaves such as birth or adoption that are covered by available PTO balances, subject to applicable University policies. Family Medical Leave: There are federal, state, and University policies, which allow employees to take time off under various circumstances. These policies generally do not require paying employees for this time, unless it is covered by available PTO balances. • DFM Physician Compensation Plan Policy: • Unpaid Time Off: For time off not covered by available PTO balances based on applicable University policies, no physician compensation is paid. For the remaining portion of the fiscal year, compensation is calculated using the Physician Compensation Plan, pro-rated for the portion of the fiscal year remaining. Paid Time Off – General Rule: Total compensation under the Physician Compensation Plan is calculated using benchmarks that reflect normal vacation and sick time usage. No special provision is made for routine use of paid time off. Clinical productivity and compensation are generally higher in years in which less vacation and sick time is taken, and lower in years in which more vacation and sick time is taken. The minimum annual compensation under the plan is the UW-Madison salary. Paid Time Off – Parental leaves and approved Family Medical Leaves The following provisions apply only to the extent that available PTO balances are used to cover the time in accordance with applicable University policies. University policies place limits on the use of this time, such as how much sick time can be used for a maternity leave. If additional time off is taken beyond applicable limits or after PTO balances are exhausted, no physician compensation is paid. For up to six weeks in a fiscal year, faculty will receive their normal total compensation. This is generally based on the most recent compensation estimate. The DFM Compensation Committee will determine an alternate basis if an estimate is not available or if circumstances render another basis more appropriate. Faculty members are expected to make up missed call, otherwise the stipends for call will be deducted. For new faculty who are in their two year guarantee period, compensation will not be • • adjusted as described above, and instead will be calculated based on the normal compensation formula for the entire fiscal year, subject to the physician’s guaranteed minimum compensation. For up to six additional weeks in a fiscal year, faculty will receive 2/3 of their normal total compensation. If this is less than the UW-Madison salary, the UW-Madison salary will be used. Faculty members are expected to make up missed call, otherwise the stipends for call will be deducted. For new faculty who are in their two year guarantee period, compensation will not be adjusted as described above, and instead will be calculated based on the normal compensation formula for the entire fiscal year, subject to the physician’s guaranteed minimum compensation. For the thirteenth week in a fiscal year and thereafter, faculty will only receive their UW-Madison salary until PTO balances are exhausted or otherwise unavailable based on University policies. For the remaining portion of the fiscal year, compensation is calculated using the Physician Compensation Plan, pro-rated for the portion of the fiscal year remaining. Notification Requirements: A separate department policy is under development. Until such policy is communicated, you should follow the process for your work unit(s). Disclaimer: If any provision of this policy conflicts with UW-Madison, UWMF, state of Wisconsin, or federal policies or regulations, such policies and regulations will supercede that provision.