University of Virginia Library

MEDICAL COMPENSATION PLAN

The President presented, and with the assistance of the Comptroller, explained in detail a new
medical compensation plan which had been developed by the Clinical Staff Standing Committee for Remuneration
and Contracts and approved by the Dean of the School of Medicine. A number of questions
were raised concerning the plan and a general discussion followed.

At the conclusion of this discussion, the following resolution was adopted

RESOLVED by the Board of Visitors of The Rector and Visitors of the University of Virginia that,
effective 1 July 1961, the following compensation plan, as proposed by the Clinical Staff Standing
Committee for Remuneration and Contracts and as approved by the Dean of the School of Medicine, shall
govern the financial arrangements for the geographical full-time members of the Clinical Departments
of the School of Medicine

(1) The proposed plan entails

(a) The establishment of a "Pool Fund" derived from a contribution from each Clinical Department
of ten per cent (10%) of its gross earnings

(b) A percentage increase in total income of clinicians over the 1959-1960 or 1960-1961 income,
whichever is the higher. (Physicians whose salaries are derived from grants and similar fixed income
sources are not included.) The Bursar will determine the highest per cent financially feasible. The
Bursar's calculations will provide the maximum raise possible for individuals and this raise will be in
lieu of the Merit Raise for 1961-1962 (for 1961-1962 the Bursar's recommendation is 12%). A Departmental
Chairman may, within the limits of his own departmental income, recommend to the Dean reasonable adjustments
for income inequities in his Department. No individual shall be raised over a $27,500 ceiling.

(c) Provided experience in 1961-1962 indicates the plan to be a financially sound one, there will
be a further increase in the income limits to the maximum permitted by the State of Virginia (the limits
each year to be calculated by the Bursar).

(2) Believing that the "Pool Fund" should be very clearly defined, the Committee (Clinical Staff Standing
Committee for Remuneration and Contracts) offers the following specifications

(a) The Pool Fund is to be derived solely from the contributions from each Clincial Department of
only ten per cent (10%) of its gross earnings exclusively from private practice and laboratory services.

(b) Contributions are to be made each month to the Pool Fund which will be held by the Bursar of
the University of Virginia for appropriate distribution at or near the end of each fiscal year.

(c) The sole control of the Pool Fund shall rest in the hands of the Clinical Staff and the Dean
of the School of Medicine. The Clinical Staff shall be represented by a committee of the Chairman of
all Clinical Departments. The Bursar, as custodian of the Pool Fund, shall recommend disbursements
from the Fund which must be first approved by the Dean and the Committee of the Chairmen of all Clinical
Departments

(d) Disbursements from the Pool Fund are to be made by the Bursar to the proper Clinical Departments
and, in turn, the Clinical Departments will through the Bursar, distribute the money to the
accounts of individuals.

(e) The Pool Fund cannot be used for Hospital, Medical School, or University purposes. It is to
be used only for redistribution to Clinical Departments and as further specified in paragraph (3).

(f) The Clinical Departments are to use the Pool Fund first for assuring TIAA contributions of
its practicing clinicians and the Dean of the School of Medicine and, second, for assuring, as far as
possible, the attainment of their allowed income ceilings by practicing clinicians.

(g) If the Pool Fund should exceed its needs, it shall be returned to the Clinical Departments
that contributed it on a prorata basis. Once returned to Clinical Departments it will be used as
specified in paragraph (3).

(3) Any money remaining in a Clinical Department account after its contribution to the Pool Fund, paying
its general expenses, paying TIAA contributions for its members, and paying its members their
collections up to allowed income ceiling shall be distributed as follows. One-third to its Reserve
Fund, one-third to the Research and Development Fund, and one-third to the Pool Fund. Provided the
Pool Fund does not need it, the money will be divided equally between the Departmental Reserve Fund
and the Research and Development Fund, up to its proportionate share in a Research and Development
Fund which may accumulate annually a sum of $25,000. If the Research and Development Fund does not
realize $10,000 the first year, the deficit shall be made up by assessment of the Pool Fund. In subsequent
years, if deficits occur, it is understood that the Pool Fund Committee must provide for them.

(4) A Departmental Chairman wishing to fill a temporarily vacated position, or to establish a new
position shall, as in the past, get the approval of the Dean and necessary money will automatically
become a general departmental expense as specified in paragraph (3), exclusive of anticipated income
from the Pool Fund.

(5) The so-called $750 "Merit Raise" shall be, as in the past, a matter for the decision of the Departmental
Chairman and the Dean and will automatically become a general departmental expense as
specified in paragraph (3).

(6) Prolonged illness of a clinician with consequent cessation of his earnings may be, at the discretion
of the Departmental Chairman and the Dean, compensated for as a general departmental expense
up to 100% of the clinician's ceiling for the first six months and thereafter the Departmental Chairman
and the Dean are to make some suitable arrangement.

(7) Clinicians who have retired from Departmental Chairmanships because of age (65) or other
reasons, but remain as members of Clinical Departments until age 70 shall receive their earnings
up to their allowed ceilings, less the usual deductions (Pool Fund, 10%, Departmental Expenses,
20%, Withholding Tax). Retired Chairmen who do not reach their allowed earned income ceiling
must have the Dean's permission to have their income supplemented by their Department.

(8) The estate of a clinician who dies while still a member of a Department shall retain indefinitely
his rights to his earnings up to the time of his death. As a courtesy, however, money
collected on his accounts shall be paid monthly to his heir without deductions for either the
Pool Fund or Departmental expenses. Resigned or retired clinicians likewise shall retain indefinitely
their rights in their earnings up to the time of separation from the Department. Money
collected on their accounts shall be paid to them monthly after deducting ten per cent (10%) for
the Pool Fund and twenty per cent (20%) for Departmental expenses.

(9) Any question as to the interpretation of the provisions of this plan which shall arise during
the time it is in force shall be adjudicated by the Clinical Staff Standing Committee for Remuneration
and Contracts and the Dean of the School of Medicine, subject to the final approval of
the President.