Chapter 460: UMKC Dental Faculty Practice Plan

460.010 Definitions

kuscheld — Wed, 26 May 2010 22:27:00 +0000

460.010 Definitions kuscheld Wed, 05/26/2010 - 22:27

Bd. Min. 2-11-83; Revised Bd. Min 4-9-15.

Administrator - The word “administrator” shall refer to the administrative manager (or the then current title that individual has been assigned) of the overall DFP clinic who performs administrative, financial, customer service, and management duties in the DFP. He reports to the Director.
Chancellor - The word “Chancellor” shall refer to the Chancellor of the University of ��ֱ��-Kansas City.
Curators - The word “Curators” shall refer to the Board of Curators of the University of ��ֱ��.
Dean - The word “Dean” shall refer to the Dean of the School of Dentistry, University of ��ֱ��-Kansas City.
Dean’s Administration Allocation - The words “Dean’s Administration Allocation” shall refer to a percentage of gross collections to cover certain overhead costs incurred by the UMKC SOD in the operation of the Dental Faculty Practice. The overhead costs include, but are not limited to, administrative support, facilities maintenance, facility usage charge, general liability insurance and other necessary indirect costs. The allocation percentage shall be determined by the Dean.
Dental Clinic -The words “dental clinic” as used herein shall refer to the Dental Faculty Practice Clinic at the School of Dentistry, University of ��ֱ��-Kansas City.
Dental Faculty Practice (DFP) - The words “dental faculty practice or DFP” shall refer to the actual dental clinic within the SOD in which the Participants practice and participate in the Plan.
Dental Faculty Practice Plan (or “Plan”) - The words “dental faculty practice plan,” or simply the “plan” shall refer to the rules and regulations approved by the Board of Curators which will govern and regulate the DFP and its practices. This Plan will operate in accordance with all governing rules, regulations and policies of the University of ��ֱ��, including Equal Opportunity.
Dental Hygienists (RDH) - The words “dental hygienists” shall refer to registered dental hygienists working in the DFP and seeing patients of the Participants. They report administratively to the Administrator and clinically to the Participant doctors with whom they work.
Director - The word “director” refers to the Director of the Dental Faculty Practice as defined in section 460.080. He reports to the Dean.
Director of Business Affairs - The words “Director of Business Affairs” shall refer to the SOD’s Business Officer who monitors and advises the DFP.
Gender - Where the masculine pronoun is used it shall be interpreted as feminine when applicable.
Income Sharing - The words “income sharing” shall be that amount distributed monthly to each doctor Participant in accordance with the formula for determining each doctor’s proportional share of the net profit.
Miscellaneous Expense Account - The words “miscellaneous expense account” shall refer to the account maintained by the administrator for managing expenses that are generally considered overhead in the operation of a dental practice or for necessary teaching expenses incurred by an individual participant and approved by the director. All expenditures will be administered in accordance with University and SOD policies. These expenses would include but are not limited to items such as: personal continuing education costs, association dues, dental licenses, loupes, and similar items.
Operations and Procedures Manual - The words “operations and procedures manual” shall refer to the collection of guidelines, systems, and policies that are contained in the manual outlining the day-to-day workings of the DFP. These various protocols are created with collaboration of faculty, staff, and administrators to maximize the effective and efficient running of the dental clinic and to fulfill its mission and vision.
Participant - The word “participant” as used in these regulations shall refer to a member of the faculty of the School of Dentistry who is a member of the plan.
Participation Agreement - The words “participation agreement” shall refer to the document that is signed annually by all doctor participants outlining their understanding and agreement to abide by the rules and regulations of the DFP and the Plan, and assigning all income from services rendered under the DFP to the University.
Participant Body - The words “participant body” shall refer to the total collective participants in the plan.
Plan Income - The words “plan income” shall be construed to mean all fees for services received by the University by assignment which are derived from patient care directly delivered by faculty within facilities operated by the Dental Faculty Practice.
Plan Overhead - The words “plan overhead” shall refer to all the costs of operating the plan which may include laboratory fees, billing and collection costs, support personnel compensation & benefits, supplies, marketing, administrative services, reserve fund contributions, debt/deficit reduction, UMKC full costing charges, the Dean’s Administrative Allocation, and other expenses.
School of Dentistry (SOD) - The words “School of Dentistry” shall refer to the School of Dentistry, University of ��ֱ��-Kansas City.
Staff - The word “Staff” refers to the non-faculty personnel who carry out the administrative, clerical and clinical duties for the clinic. They report to the supervisors.
Supervisors - The word “Supervisor” shall refer to individuals who manage either the administrative or clinical staff of the DFP. They report to the Administrator.
UMKC Full Costing - The words “UMKC full costing” shall refer to the charge levied by the University that is allocated proportionally among non-educational entities on campus for central administrative service costs provided by the university. These would include, but are not limited to, the following: campus accounting services, banking functions, credit card services, central payroll office and HR, financial systems, and administrative software.
University - The word “University” shall refer to The Curators of the University of ��ֱ��.

460.020 Purposes of the Plan

kuscheld — Wed, 26 May 2010 22:28:00 +0000

460.020 Purposes of the Plan kuscheld Wed, 05/26/2010 - 22:28

Bd. Min. 2-11-83; Revised Bd. Min 4-9-15; Revised 6-25-15.

Faculty members of the UMKC School of Dentistry may be engaged in one or more of the following employment duties: teaching, research and patient care. Patient care is an integral part of the educational mission of the school for it provides to the instructor and the dental student the clinical laboratory experience essential to dental education.

This plan has been created to provide a means for additional compensation beyond their base salary. All payments to plan participants made pursuant to the provisions of this plan constitute supplemental compensation paid by the employer to the plan participants and is subject to all of the rules and regulations of the University of ��ֱ��. This supplemental compensation shall not be used to calculate University retirement benefits or any other University benefit.

All plan income referred to in this section shall be irrevocably assigned to the University by the plan participants. No plan participants shall have any right, title or interest in any such plan income; and the University shall have the unrestricted right to such income and complete control over its disposition. Provisions in this plan for accounting for plan income and expenses and for recommendations from plan participants are not intended to and shall not be construed to confer on plan participants any right, title or interest in plan income, any right to control the disposition of plan income and expenses, or any right to determine salaries.

In addition to a Participation Agreement, each participant will sign a Non-Solicitation Agreement as a requirement of their participation in the Plan. These documents are a part of the Operations & Procedures Manual.

The Plan is created to achieve the following purposes:

To provide a system by which eligible faculty are provided an opportunity to achieve fulfillment of their commitment to high quality patient care;
To recognize that high quality patient care is not only related to faculty participation in teaching and research, but also that high quality clinical teaching is dependent upon the faculty being engaged in active dental practice, as well;
To establish a financial incentive mechanism for faculty compensation which enhances the attainment of the School of Dentistry goals of patient care, teaching and research;
To inhibit the loss of highly qualified faculty to other academic health institutions and private practice because of differences in compensation and to attract qualified faculty for the same reason;
To establish a venue for professional fee generation, compensation, and utilization to accomplish the above purposes.

460.030 Participants

kuscheld — Wed, 26 May 2010 22:30:00 +0000

460.030 Participants kuscheld Wed, 05/26/2010 - 22:30

Bd. Min. 2-11-83; Revised Bd. Min 4-9-15.

Eligibility
Faculty members are eligible to become participants in the DFP in accordance with the policy set forth in Section VII of the SOD Faculty Handbook. This policy states the following:

Intramural or extramural faculty practice options may be available for practitioners holding a current license (��ֱ�� license required to practice intramurally). These options are available to non-tenure track as well as tenure track and tenured faculty. The opportunity to work in the SOD Faculty Practice is dependent upon a number of factors and requires the approval of Dean. Faculty or faculty applicants who are interested in faculty practice should work with their department chair, the Dean of the school as well as the Faculty Practice Director. For each faculty participant in the Faculty Practice, a written participation agreement will be executed annually and filed in the Office of the Dean.

Plan participants will abide by all provisions of the Plan, the DFP Operations & Procedures Manual, the UMKC policies and the University of ��ֱ�� Collected Rules and Regulations. In addition, each Participant will also practice in accordance and must comply with the following:
1. The Code of Ethics of the American Dental Association;
2. The laws governing the practice of dentistry in the State of ��ֱ�� as defined by the ��ֱ�� Dental Board; and
3. The general rules, by-laws and policies of the SOD.
The Dean of the School of Dentistry is not eligible to be a participant in the Plan.
Membership
All Members of the DFP must be members of the faculty of the UMKC School of Dentistry. To become a Participant in the DFP, an application provided by the DFP must be submitted to the Director. The Director will make an initial determination of the available resources and review the faculty member’s credentials. A recommendation will then be made and forwarded to the Dean for final approval.
Subject to University regulations, retired faculty participants who are eligible to work for the University and have practiced for at least three years in the DFP may be allowed to continue to practice following their retirement from the SOD with the approval of the Dean. Such approval will be reviewed and approved by the Dean annually.
Termination from the DFP
Participants may be terminated from the DFP for violating any of the above-mentioned governing rules and regulations. Maintaining the privilege to practice as a participant in the DFP is dependent upon fulfilling the obligations of eligibility as outlined in section 460.030(A) and in the DFP Operations and Procedures Manual.

460.040 Income

kuscheld — Wed, 26 May 2010 22:31:00 +0000

460.040 Income kuscheld Wed, 05/26/2010 - 22:31

Bd. Min. 2-11-83; Revised Bd. Min 4-9-15.

Within the framework of the plan, plan income shall be derived from the following sources:
1. All professional fees for service income derived from faculty patient care in the Dental Faculty Practice shall be plan income.
2. All other income derived from faculty patient care related services in the Dental Faculty Practice shall be plan income.
3. Income of participants not related to patient care shall not be plan income.
4. Fees for services rendered to patients by Dental Hygienists shall not be plan income, but can be used to pay general overhead or other general expenses of the Plan.
Governmental payers will not be billed for services under the Plan, with the exception of services provided by oral pathologists participating in the Plan.

460.050 Costs of Operation of the Plan (Plan Overhead)

kuscheld — Wed, 26 May 2010 22:33:00 +0000

460.050 Costs of Operation of the Plan (Plan Overhead) kuscheld Wed, 05/26/2010 - 22:33

Bd. Min. 2-11-83; Revised Bd. Min 4-9-15.

The DFP is expected to operate, to the extent possible, as a self-sufficient operation within the physical confines of the SOD. Plan overhead shall be paid from Plan Income and shall be paid first before any participant compensation is allocated. The rate of Plan overhead charged will be at the discretion of the Dean of the SOD with the approval of the Chancellor. Plan overhead expenses include, but are not limited to:
1. Billing and collections
2. Administrative costs, supplies and operating expenses
3. Support personnel compensation and benefits
4. Marketing and promotional expenses
5. UMKC full costing
6. Dean’s Administrative Allocation
7. Facility charges
8. Dental supplies
9. Reserve /capital improvements fund
Other individual overhead expenses such as laboratory costs and the Miscellaneous Expense Fund shall be deducted from the individual Participant’s net collections.
The Director of Business Affairs shall review and audit periodic reports provided by the Administrator of the DFP concerning accounting and financial practices of the DFP.
The Director of the DFP shall periodically communicate with the Participants regarding the business affairs of the practice at least monthly. The Director shall solicit input from the plan Participants in an effort to minimize practice overhead and maximize profits.
The Director and the Administrator of the DFP are responsible for reviewing the DFP financials with the Dean on an ongoing basis at least quarterly.
The Dean shall report to the Chancellor as needed, but no less than annually, regarding all aspects of Plan operations, including fiscal and quality concerns.
From time to time, good accounting practice and effective fiscal management may well indicate a need to revise, expand, contract or otherwise modify the accounting system relative to the plan. Nothing in this plan shall be interpreted as preventing such accounting revision, expansion, modification or contraction so long as they adhere to commonly accepted accounting practices and University policy.

460.070 Allocation of Plan Income

kuscheld — Wed, 26 May 2010 22:37:00 +0000

460.070 Allocation of Plan Income kuscheld Wed, 05/26/2010 - 22:37

Bd. Min. 2-11-83; Revised Bd. Min 4-9-15.

Plan Income
Plan income shall be all monies collected for services rendered or products sold (collections) by the participants in the DFP during a given period of time. This would be the total production for that same period less any deductions, discounts, write-offs and/or accounts receivable.
Deductions from Plan Income
From the total plan income, all plan overhead attributed to the DFP shall be paid first from the revenues (collections) of the practice leaving a difference called net plan income.
Net Plan Income
The balance remaining after deducting all Plan Overhead from the DFP Plan Income is the amount available for Participant compensation or net plan income. All or part of this amount may be distributed to the participants as supplemental compensation for participating in the DFP. The Administrator and the Director will review and make a recommendation to the Dean on the amount of net plan income that is available for distribution.
Minimum monthly collection amounts
It is understood that all Participants should be responsible for covering the direct overhead costs incurred on their behalf while participating in the DFP.
To ensure that each Participant in the Plan is covering a reasonable share of the general ongoing overhead of the DFP, the plan may institute a minimum monthly collection, which would be decided by a simple majority of the Participant members. Specifics regarding covering direct overhead costs and minimum monthly collection shall be addressed in the Operations & Procedures Manual.
Miscellaneous expense account (8% account)
A separate account is available to each participant on a voluntary basis that would be managed by the DFP administrator. Known as the miscellaneous expense account, this account is specifically for managing expenses that are generally considered to be overhead in the operation of a dental practice or, as approved by the Director of the DFP. Guidelines for the expense account are outlined in the DFP Operations & Procedures Manual.
All expenditures from the miscellaneous expense account will be administered in accordance with University, SOD, and DFP Plan policies. In general, a portion of a participant’s monthly income sharing (subject to a percentage limit of 8% up to a maximum of $5000.00) can be voluntarily transferred to this account which will be held separately on behalf of the individual participating doctor. The participant can then direct the administrator of the DFP to pay for certain qualifying expenses out of this account.

The monies transferred into the miscellaneous expense account are before tax dollars. Similar to a flexible spending account, monies transferred into this account can only be used to pay for qualifying expense items as outlined in the DFP Operations Manual.
Separation from the Practice Plan
When a participant is no longer a member of the Plan, the following will occur:
1. A Plan participant (or his/her estate if the participant dies) shall be entitled to receive his or her net collections (as determined by the standard income sharing formula) from accounts receivable for six (6) months after the effective date of the separation. After six (6) months, any additional accounts receivable that are collected on behalf of the separated participant will not be distributed to the participant but shall remain with the DFP and be placed in the general operating fund of the DFP.
2. If any monies remain in the participant’s miscellaneous expense account at the time of the separation from the DFP Plan, that remaining balance is forfeited to the University and will no longer be available to the participant.

460.080 Administration of the Plan

kuscheld — Wed, 26 May 2010 22:40:00 +0000

460.080 Administration of the Plan kuscheld Wed, 05/26/2010 - 22:40

Bd. Min. 2-11-83; Revised Bd. Min 4-9-15.

The DFP Plan
The DFP Plan is the document approved by the Board of Curators that outlines the broad operational goals and structure of the DFP. The specific, day-to-day tactical procedures and policy guidelines are set forth in the DFP Operations & Procedures Manual. This manual shall include all aspects of the DFP and defines the individual desired outcomes; provides measurements to assure the effectiveness of each outcome; and outlines specific steps to accomplish every outcome; this manual also contains relevant policies and procedures of the DFP.
Director of the Dental Faculty Practice
The Director shall be a full time faculty member, and will report directly to the Dean of the SOD.This position is appointed by and serves at the discretion of the Dean.Selection of a Director shall involve consultation with the DFP participants but the final decision shall be determined by the Dean.The responsibilities of the director shall include:
1. Assuring that the overall operation of the DFP is compliant with the UM Collected Rules and Regulations and the DFP Plan; and all applicable laws, rules and regulations.
2. Overseeing the management of the DFP, delegating responsibilities to the appropriate staff & practitioners;
3. The fiscal management of the DFP, bringing best practice efficiencies into place such that the practice maintains an appropriate mix of practitioners, volume of patients (marketing) and fiscal feasibility and responsibility;
4. Reviewing the general operating budget on a quarterly basis with the chief fiscal officer of the Plan;
5. To the extent possible, assuring that the DFP is self-sufficient as a business entity and operates fiscally independent of the SOD operations;
6. Developing relevant benchmarking tools to track progress (trending) of the practice in: a) patient growth, b) expenditures, c) revenues and productivity, and/or d) other appropriate indices;
7. Developing and maintaining a current long-term strategic plan for the DFP;
8. Assuring that appropriately trained staff is available for quality, efficient operation of the DFP;
9. The development and periodic upgrading of the DFP Plan that is approved by the University of ��ֱ�� Board of Curators;
10. The development and periodic upgrading of the DFP Operations & Procedures Manual with consensus of the DFP staff and participants, where appropriate;
11. Implementing and having Participants sign annual Participation Agreement to practice in the DFP; and
12. Assuring that appropriate quality improvement measures are in place, and that quality reviews are undertaken as necessary.
Additional Monitoring of the Plan
1. Chancellor--The Dean shall meet at least annually with the Chancellor to report on all Plan operations.
2. Dean--All modifications to the Plan shall be at the discretion of the Dean, who will forward those recommendations to the Chancellor and Board of Curators for final approval.
3. Director of Business Affairs--On a periodic basis, but no less than monthly, he will meet with the Director and Administrator to review the business and financial health of the DFP.
4. Director--On a monthly basis, the Director will meet with or inform the Dean of the most recent operating and financial information from the DFP.
5. Administrator--The chief responsibility of the Administrator is to collect and analyze monthly indicators, manage data that describe the operational health of the DFP, oversee and manage clinic supervisors, and to make recommendations on changes or additions to the Director.
6. Supervisors--The administrative and clinical supervisors monitor and manage the staff personnel that operate within the DFP and report to the Administrator on an ongoing basis.
DFP Participant Meetings
On a periodic basis but no less than annually, a meeting will be held to discuss the operations and finances of the DFP. Appropriate financial and operational information will be shared with the parties present. All DFP Plan participants, the administrator, the director, the Director of Business Affairs, and the Dean, SOD will be invited to attend. The purpose of such meetings is to improve communications between faculty and administration, improve the overall work environment, and to update all parties with the then current status of the DFP.