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The materials below consist of regulations of the State University of New York Board of Trustees. However, it is not the Official Compilation of the Codes, Rules, and Regulations of the State of New York. Readers are advised to refer to the Official Compilation ( 8 NYCRR Part et seq )in case of questions.

PART 340

PLAN FOR THE MANAGEMENT OF CLINICAL PRACTICE INCOME

Sec.

340.1

Policy

340.2

Development of plan

340.3

Implementation of plan

340.4

Plan requirements

§ 340.1 Policy.

It is the policy of the university that each school of medicine and dentistry and the College of Optometry shall have a plan for the management of clinical practice income that is consistent with the requirements set forth in this Part.

§ 340.2 Development of plan.

The chancellor shall take all necessary steps to develop and implement plans for the management of clinical practice income consistent with this Part and with the provisions of the applicable collective bargaining agreement. Nothing contained in the plan shall allow actions to be taken by the individual plan members or any governing board which are inconsistent with the educational mission of the college.

§ 340.3 Implementation of plan.

Any plan which is determined pursuant to such a collective bargaining agreement to be consistent with the requirements of section 340.4 of this Part shall be implemented by the chancellor as soon as the governing board of such plan is elected pursuant to section 340.4(c)(2) of this Part or convened by the chancellor should an election not occur, or within 45 days after a determination made pursuant to the applicable collective bargaining agreement, whichever is earlier. The chancellor shall provide written certification to the Director of the State Division of the Budget, the Director of the Governor's Office of Employee Relations, the State Comptroller and the certified representative of employees in the Professional Services Negotiating Unit that any plan consistent with the requirements of section 340.4 of this Part has been implemented.

§ 340.4 Plan requirements.

Any clinical practice management plan shall be consistent with the following requirements:

(a) Definitions.

(b) Participation in a plan for the management of clinical practice.

(c) Governing board.

(d) Accounting. Each plan shall provide for a central billing and accounting system under the control of the governing board. The accounting system shall provide a means to record transactions respecting collection and disbursement of clinical practice income, including but not limited to such transactions involving a plan member, department, school of medicine or dentistry, College of Optometry, health sciences center, or medical center. All accounts shall be available at any reasonable time for inspection by the chancellor, or designee, the chief administrative officer, or designee, and representatives of the State Division of the Budget and Department of Audit and Control. Monthly reports shall be forwarded to the office of the vice chancellor for finance and business as determined by that office. The governing board shall provide copies of the annual audit to plan members at least once each year. The governing board, or in the case of a plan organized along departmental lines, the department, shall provide each plan member an account of the amounts billed and collected as a result of the plan member's clinical practice and a summary of those accounts for which payment has not been received. Any professional or academic employee who is a plan member may authorize, on his or her behalf, the duly certified employee organization representing the Professional Services Negotiating Unit to request such information no more frequently than twice each year. Each plan member shall be required annually to provide such data as may be necessary for the institution to comply with the appropriate sections of the Public Health Law. Where clinical practice at an institution is organized along departmental lines the chancellor shall approve a departmental billing system if the chancellor determines it adequately complies with the above standards. In no event shall individual plan members be permitted to bill directly for fees for professional services.

(e) Auditing. All accounts shall be audited annually by independent auditing firms chosen by the governing boards to determine whether the operations of each plan for the management of clinical practice have been conducted in accordance with generally accepted accounting principles, the provisions of the plan for the management of clinical practice and supplementary guidelines for disbursement of clinical practice income developed by a governing board.

(f) Maximum allowable compensation. At least once annually, the chief administrative officer or designee shall provide to each employee who is required to be a member of a clinical practice plan a statement in writing which sets forth the maximum allowable compensation which such employee may earn from all sources, including State basic annual salary, clinical practice income as previously defined, salary from an affiliated hospital and research grants, but excluding royalties, honoraria and income unrelated to patient care; provided, however, that compensation from a research sponsor shall be subject to the regulations of the sponsor. Such maximum allowable compensation shall be arrived at by the chief administrative officer or designee after consultation with the employee, the employee's department chairperson and the dean, and after considering the employee's present commitments and future goals in teaching, patient care and research, as well as the amount of clinical practice income attributable or likely to be attributable to the employee. With due consideration of the factors stated above, an employee's maximum allowable compensation shall not be unreasonably fixed at less than 250 percent of maximum State basic annual salary for the employee's rank when clinical practice income attributable to the employee, or available to the employee under provisions of a plan for management of clinical practice, permits maximum allowable compensation to be fixed at such percentage. Except as specifically provided hereafter, the maximum allowable compensation may not exceed 250 percent of the maximum State basic annual salary for a member's rank. In special circumstances relating to recruitment of employees, the chief administrative officer or designee may authorize a newly recruited employee who is required to be a member to receive more than 250 percent of the maximum salary for such member's rank, if in the chief administrative officer's judgment the best interest of the institution is served, but in no event shall this authorization extend beyond the first two years of such member's employment. With the approval of the chancellor, or designee, the maximum allowable compensation of individual plan members may be increased to 275 percent of the maximum State basic annual salary. In exceptional cases related to the retention of physicians in difficult to retain specialties, the employee's maximum allowable compensation may exceed 275 percent with the approval of the chancellor or designee. In making such recommendations, the chief administrative officer shall give due consideration to the competition for individuals in the particular specialty as indicated by the Association of the American Medical Colleges' compensation data, and the hospital and other revenue generated by the employee's clinical activities. Such exceptions shall not exceed five percent of the total number of physicians on a system wide basis. The State shall pay fringe benefits only on the State basic annual salary. With the approval of the chief administrative officer or designee, the State and the certified representative of employees in the Professional Services Negotiating Unit, members of a clinical practice management plan at each school may elect by majority vote an alternate compensation method in which case plan members may be permitted to earn and retain amounts generated which exceed 200 percent of the maximum allowable State salary for such member's rank; provided, however, that 50 percent of such amounts authorized to be earned above the 200 percent level shall be paid into the fund in paragraph (g)(1) of this section. With the approval of the chancellor, or designee, individual members of plans which have adopted the alternate compensation method may be permitted to earn and retain amounts which exceed 225 percent of the maximum allowable State salary for such member's rank; provided, however, that 50 percent of such amounts authorized to be earned above the 225 percent level shall be paid into the fund in paragraph (g)(1) of this section. If selected, the alternate method shall be in lieu of the method of compensation first described in this subdivision. After an approved clinical practice plan has been fully operational for a period of 12 months, the members of the plan may, subject to the approval of the chancellor, State and the certified representative of employees in the Professional Services Negotiating Unit, elect by majority vote to change the method of compensation initially selected; provided, however, the methods of compensation are limited to the two methods provided in this subdivision.

(g) Disbursement of clinical practice income. Provisions for disbursement of clinical practice income shall provide for the following in order of priority: