Becker's Hospital Review

25 CFO / FINANCE RWJBarnabas Signs Letter of Intent With Rutgers to Form Academic Healthcare System By Alyssa Rege O fficials at West Orange, N.J.-based RWJBarnabas Health and New Brunswick, N.J.-based Rutgers Uni- versity signed a letter of intent to create one of the state's largest academic healthcare systems. e venture will reportedly enhance the deliv- ery and accessibility of healthcare for patients throughout the state, boost recruitment and ad- vance innovation in healthcare and education. Rutgers faculty will provide clinical services at the health system through the Rutgers Health Group, the university's 1,000-mem- ber physician practice. e collaboration will result in a multispecialty group com- prised of more than 2,500 practitioners. However, the two organizations will remain independent entities. Officials stated the organizations will also create a joint committee for strategic plan- ning and oversight and begin jointly recruit- ing academic and clinical practitioners as part of the partnership. "e clinical delivery of services will be man- aged and led by RWJBarnabas Health in co- ordination with Rutgers, and the academic and research functions will be managed and led by Rutgers in coordination with RW- JBarnabas Health," said Barry H. Ostrowsky, president and CEO of RWJBarnabas Health. "Together, we are solidifying our commit- ment to drive advanced research and invest in the health and wellness of the people in our communities throughout the region for many years to come." n Some MUSC Physicians Refuse to Sign Employment Contracts Over Change to RVU-Based Compensation By Alia Paavola A s an August deadline looms, 165 physicians have yet to sign employment contracts at Charleston-based Medical University of South Carolina due to confusion over a new relative value unit-based compensation plan. The new RVU compensation plan ties a portion of physician's pay to the number of patients they treat. Physicians who fail to meet these volume-based standards will lose a portion of their pay. It was established to reward high achievers and track productivity. MUSC spokesperson Heather Woolwine told Becker's Hospital Re- view there are various reasons why physicians haven't signed the new contracts. "Some have been traveling, some have asked for more clarification, and some may not sign due to natural attrition," she said. More than 40 clinical faculty members have signed con- tracts in the past four days, according to Ms. Woolwine. Revealed in a faculty survey published on MUSC's website, the new compensation plan has yielded confusion and criticism from a majority of clinical faculty members, according to the Post and Courier. Leadership at MUSC pushed the July 31 deadline to Au- gust 15 to provide time for more discussion and clarification on the compensation plan. "There has been a lot of talking and discussing, meeting, and meet- ing again with various groups of faculty throughout the implemen- tation to address concerns, answer questions, and perhaps most im- portantly, dispel myths about this structure" Ms. Woolwine added. Many hospitals in the Charleston area and other MUSC depart- ments already use RVUs to determine physician pay, according to the report. n Financial Concerns Prompt Johns Hopkins-Owned Hospital to Eliminate Staff Through Buyouts By Ayla Ellison S ibley Memorial Hospital in Washington, D.C., which is owned by Baltimore-based Johns Hopkins Medicine, is seeking to close a pro- jected budget gap through voluntary employ- ee buyouts, according to documents obtained by The Washington Post. According to a letter to staff members from Sib- ley Memorial Hospital President Richard "Chip" Davis, the hospital is projecting a "significant budget gap" in the upcoming fiscal year. Mr. Da- vis said several factors led to the financial issues, including dwindling inpatient volume, rising ex- penses and the shift to value-based care, accord- ing to The Washington Post. Under the buyout program, employees would re- ceive one week of pay for every year they were employed by the hospital for up to 12 years. Em- ployees would also get a $15,000 cash bonus. Employees who want to participate in the buyout program must turn in their applications by Aug. 11, and managers will decide which employees receive the buyouts by Aug. 28. For those who take part in the buyout program, the last day of employment will be Nov. 10, according to the re- port. n

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