As a health system, having 2 physicians making 350 rather than 1 making 700 gives you redundancy, protection, and stifles negotiating power. Let's say you have a satellite run by 1 doc making 700k. If that person needs to take vacation, maternity/paternity leave, sick leave, etc, the health system need to find coverage. If that doc has any employment demands, the hospital has more pressure to accommodate.Doesn't make a ton of sense to me from the perspective of a chair/admin. Benefits are an extra 50k per person which cuts into margins of employing more. Sure you may be better off with 2 at 350 then one at 900, but that's not savings maximizing.
If the labor market supports it, hire one person full time at 500k who works hard instead of two at 350 who are working at half capacity. One person at 500 with maybe an extra 50k in per diem payments for coverage as needed. Academic departments that i know aren't in the business of handouts to support jobs for underutilized faculty.
Now let's say you have 2 physicians covering that satellite. These coverage problems disappear. If one of them threatens to walk unless they get a raise, the health system has built-in coverage while they find a replacement. If the health system needs coverage at a separate satellite, they have an extra body to float.
The problem with the model is that it becomes a revolving door. When the new grad making 350k hits year 3 and doesn't get the raise they'd like, they leave. However, you have the other doc to pick up the slack while they're gone, maybe even to their benefit ala RVU bonus, and if the clinic is in a desirable location there are a lot of new grads willing to step in and fill the void. Rinse and repeat.