A faculty practice plan is the organisation through which medical school faculty deliver and bill for patient care. It sits between the university, the hospital and the physicians, and every academic medical centre has one.
The three missions
Academic physicians teach students and residents, conduct research and see patients. Clinical revenue from the practice plan is the largest source of support for the other two missions. Tension between missions is constant.
Organisational forms
Plans can be a school department-based system, a single unified group practice, a separate non-profit corporation, or a group integrated into the hospital. The trend is toward unified, professionally managed plans.
Who the stakeholders are
The dean, department chairs, the hospital CEO, the university, faculty, residents and patients all hold a stake. Decisions that would take one signature in a community group can require four in an academic plan.
Worked Example
A dean asks why the plan’s surplus is shrinking. The consultant finds the plan is a loose confederation of 20 department practices with separate billing offices and no shared standards. The recommendation to unify billing alone saves $8 million a year and becomes the first step toward a single group practice.
Action Step
Identify an academic medical centre and determine, from public sources, how its practice plan is organised: department-based, unified group, separate corporation or hospital-integrated.
This lesson is educational only. It is not legal, regulatory, financial or clinical advice, it does not create a consultant-client relationship, and completing this course does not confer any credential, licence or certification. Always confirm current federal, state and payer rules with qualified counsel before acting.