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Since traditional sources of funds for educational and research programs have declined, many medical schools are seeking new methods and arrangements to supplement or replace former sources of revenue. Some 99 of the 111 established M.D. degree-granting accredited medical schools have or are in the process of implementing medical practice plans. Although individual practice plans vary, all include the fundamental considerations of: corporate format of the plan, requirements and eligibility for membership, organization, operation and administration of the plan, scope of academic and/or medical practice activities of plan members, billing and collection procedure, establishment of a committee to monitor activities and plan policies and procedures, equitable distribution of plan-generated revenues, authority to establish fees for service. The article discusses in detail various existing options used in putting into practice methods dealing with the above mentioned needs and activities. In addition two models of Professional Service Organizations are explained as possible organizations in which the clinical faculty physicians can carry on their clinical practice activities independently or in a group within the overall guidelines of a practice plan, either independently or under the aegis of the medical school. In both cases physicians are assured of an equitable remuneration for services while simultaneously generating support for their department and the medical college. References and suggested readings are included.