Abstract
The term “funds flow” refers to the financial relationships between the schools or
colleges of medicine and its parent university, the hospital/health system, and clinical
departments. Funds flow arrangements vary greatly among organizations based on the
relationships between these entities, their financial status, levels of extramural
research support, and size of endowments and philanthropic activities. We review four
general funds flow models: the “Make Whole” Model, the “Pay for Production” Model,
the “Value-Based” Model, and the “Contribution Margin” Model. We also discuss issues
that can affect how these models operate and the reasons they differ depending on
organizational structures and financial postures.
Keywords
all education - medical care - medical education - medical economics
