The impact of alternative institutional policies on faculty mix, salary expense, and turnover is assessed. Guidelines are offered to aid health science school administrators to maintain faculty vitality through a period of retrenchment and new federal retirement law. A "typical" hypothetical school of medicine is simulated using a computerized model, and alternative policy provisions are assessed through a series of simulation runs. The Tenure and Promotion Policy Simulator model is a Monte Carlo simulation that can incorporate a variety of faculty appointment arrangements that exist in medical schools and can include different hiring, promotion, tenure granting, and resignation probabilities characteristic of the clinical (physician) faculty versus the basic science faculty. The ability of individual faculty policies to achieve an annual expense rate reduction of one percent per year over a ten-year period is assessed. The following areas are analyzed: retirement, promotion and tenure, contract systems, hiring distribution (age, rank, appointment type), and faculty replacement. (SW)