The Stanford University Medical Center consists of three main units: a medical school, a set of outpatient clinics, and a hospital. Financing of the center's functions cannot be carried out without federal support, and a network of relationships with government agencies has emerged. The impact of these relationships was discussed with key administrators in a number of areas of the organization: personnel, finance, some aspects of research management, legal services, facilities construction and operations, and student assistance. The impact in personnel is broad, affecting costs in recordkeeping and extra personnel but also effecting social benefits. In finance the effect of regulation is so continuous (as contrasted with seasonal or annual) that computer programs have been developed to take account of almost daily changes in regulations. In facilities the relationship is based less on cost or extent than on the great number of agencies and rules involved. Regulations affecting admissions and student progress have brought changes in admission policies and procedures, the handling of student records, and the control of student loan monies from the government. In addition to funding, the federal-institution relationship in the area of research involves the control of the substance of research, as in research on human subjects, animal care, and genetic research. The relationship in legal services is characterized by the increase in attorneys on staff: in 1973 the medical center used the services of one attorney half-time; in September 1977 the staff consists of four full-time-equivalent attorneys. An estimate is given of the amount of time used by this staff in complying with various federal authorities, totaling 75 percent. (MSE)