Authority and responsibility for carrying out management decisions approved by the PSMC board rest with the professional management firm. It includes all expenses other than physician salaries. Zero-based budgeting is employed to avoid either entity owing the other. PSMC negotiates capitated risk-sharing managed care contracts. PSMC develops PPO contracts with insurers and third-party payers.
Physician compensation is dictated by site-specific revenue generation.
Thus one practice's revenue stream can't affect another's income. To date, no one has left, but if they do, departing physicians are required to leave as a group and go back to their original structure. The group simply sells its stock back for the value at the time the departing physicians joined. PSMC releases the group's equipment to them. If one physician from a PCA member group wants to depart, a noncompete clause does pertain.