Development of a mission-based funding model for undergraduate medical education: Incorporation of quality

Background: Increasing financial pressures, along with a desire to realign resources with institutional priorities, has resulted in the adoption of mission-based funding (MBF) at many medical schools. The lack of inclusion of quality and the time and expense in developing and implementing mission based funding are major deficiencies in the models reported to date. Description: In academic year 2002-2003 New Jersey Medical School developed a model that included both quantity and quality in the education metric and that was departmentally based. Eighty percent of the undergraduate medical education allocation was based on the quantity of undergraduate medical education taught by the department ($7.35 million), and 20% ($1.89 million) was allocated based on the quality of the education delivered. Quality determinations were made by the educational leadership based on student evaluations and departmental compliance with educational administrative requirements. Evaluation: Evolution of the model has included the development of a faculty oversight committee and the integration of peer evaluation in the determination of educational quality. Six departments had a documented increase in quality over time, and one department had a transient decrease in quality. Conclusions: The MBF model has been well accepted by chairs, educational leaders, and faculty and has been instrumental in enhancing the stature of education at our institution.