The major purpose of the report is to reveal through case-study examination how seven carefully selected medical faculty practice plans evolved and how they work. The satisfactions and dissatisfactions of faculty and administrators were determined in on-site interviews. Among the findings and conclusions: (1) medical practice plans have become an essential element in the structure of medical schools; (2) although the primary use for income from these plans is the support of clinical faculty salaries, the income increasingly supports school-wide programs; (3) the importance of an organized and written plan is evident for harmony within the institution; (4) good management is as important as good initial planning; (5) preoccupation with fiscal matters is troublesome to faculty members; (6) in a number of instances faculty practitioners are provided malpractice insurance, space, and staff without paying full cost; (7) inadequate or widely dispersed physical facilities for ambulatory care are felt to be major problems at some schools; (8) greater flexibility in the use of practice funds has become essential in meeting the program commitments of all schools; and (9) although relationships between full-time clinical faculty and non-faculty community physicians can become strained, the practice plan can become a useful mechanism for achieving a favorable referral policy. (MSE)