Executive Summary of January 2019 Board of Directors Meeting
Partnership at Starling is a privilege that comes with the responsibility of citizenship. It is important for partners to be aware of some board discussion topics. For the January 2019 meeting, these topics included a review of the finance department plans and a discussion of allowances for part-time practicing partners.
When Grove Hill and CMG merged 3 years ago the two groups used different methods for allocating overhead. Initially the two methods were left in place, however, the intention was always to have one uniform system. Over the course of the past year, the compensation committee, with broad involvement of the partnership, developed a unified model which will be implemented January 2019. The model is based on utilization and involves a fixed and a variable component. A modification to this arrangement is necessary for part-time or retiring partners, who would otherwise be allocated an unintentionally excessive share of overhead, precluding sustainable practice. The finance committee deliberated such a model. Instead of a fixed/variable model this proposal would take the average shareholder overhead (as a percentage of revenue) and use that as a basis to calculate the overhead for a part-time partner.
Additionally, Starling faces some challenges recruiting primary care doctors, and we are competing with hospital systems that have resources to overpay. As such, the separate primary care doctor track was created: the model is a guaranteed per session salary in exchange for an rvu quota and adherence to quality metrics, with bonus potential.
The finance department is working through year end financials. They will be reaching out to individual clinical departments to review preliminary data and to help ensure its accuracy. Partner involvement in the process will be important moving forward. The management team is actively interviewing CFO candidates as well, and we hope to have the process complete in the near future.