Academic-practice plans have become increasingly important as a source of financial support for the faculty of academic centers. We describe the planning, implementation, and development of one such plan in a municipal hospital, a major affiliate of a medical school. The incorporated practice plan is nonprofit and is owned and governed by physicians. Its success during the eight years of its existence has resulted in growth of the faculty, the development of innovative ambulatory-care programs, and increased financial stability of the hospital. Although such problems as payment for teaching costs and academic advancement for primary-care physicians remain, it is clear that academic-practice plans can support the clinical, teaching, and research goals of academic physicians. (N Engl J Med. 1981; 304:263–9.) ACADEMIC-practice plans have become increasingly important as a means of support for the faculty of academic medical centers and as a mechanism to combine the teaching of medical students and house staff with a private mode of medical care.1 This report is a description of the planning, implementation, and development of one such practice plan at Baltimore City Hospital, a major affiliate of The Johns Hopkins University School of Medicine. The Setting Baltimore City Hospital consists of a 400-bed general acute-care hospital and a 200-bed chronic-care hospital. There were 8218 admissions to the acute-care hospital during the fiscal year 1979–1980.
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