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An analysis of the finances of all 125 accredited US medical schools is presented. Total revenues exceeded $31 billion in the 1995-96 school year, up about 5% from the previous year after adjusting for inflation. Revenue from tuition and fees increased 4.4% after inflation and funding from state and local governments increased by 1.6% after inflation. Much of the growth comes from clinical revenues, since the number of full-time clinical faculty increased 6% that year. Federal research grant payments rose 6.2% after inflation. About one-fourth of clinical revenues comes from Medicare/Medicaid., For the 1995-1996 fiscal year, all 125accredited US medical schools responded to the annual medical school questionnaire of the Liaison Committee on Medical Education, part I-A. Using data from the financial portion of the questionnaire, we identify patterns of financing medical education during the past 3 years and the practice plan arrangements adopted by medical schools, including their organizational and legal structures. This financial review details differences in how public and private medical schools are being funded and funding changes during the past 3 years. The reported data show that revenues supporting medical school programs and activities totaled more than $31 billion in 1995-1996, an increase of 5.4% in inflation-adjusted dollars during the previous year. Compared with the previous year, revenues, in current and constant dollars, increased in almost every category in 1995-1996.

Medical school revenues increased in 1994-1995, but at a slower rate than previous years. Revenues totaled $29,367 million, an increase of 4.1% adjusted for inflation. This is the second-smallest gain since 1960. Revenue from practice plans totaled $9,776 million and represented 33% of all revenues. Revenues increased in every category except for federal appropriations, which do not keep pace with inflation. Grants and contracts totaled $8,966 million, a 3.7% increase over the previous year.

Total revenues for U.S. medical schools continue to climb. A financial review of the 126 medical schools shows that total revenues have increased 19% in three years, from $23,169 million in 1991-1992 to $27,509 million in 1993-1994. Revenues from grants and contracts from 1993-1994 increased 7% over the previous year, topping $8,411 million, or 30% of total revenues. Likewise, revenue from tuition increased almost 8% in 1993-1994 over the previous year. Private medical school funding is 35% more than the public school average, with private schools getting funds from sources such as endowments and gifts, grants and contracts, and tuition and fees. Public medical schools get 19% of their funding from state and local governments, while private schools gets only 1% from these sources. Medical students are borrowing more money for their education: in 1993-1994, the amount increased by $115 million, or close to 15%, over the previous year. The mean debt for medical school graduates increased to $63,434.

Funding for all medical schools increased an average of 5.9% from academic year 1991-92 to 1992-93 after adjusting for inflation. Hospitals and related health care services brought in an average of 11.7% of the financing for medical colleges in 1992-93. Grants and contracts accounted for 31% of revenues. Federal grants increased 4.6% after inflation, and state grants increased 12.7%. Federal grants for research accounted for 61% of all grants and 19.1% of medical school financing. Funding from tuition increased 6.5% after inflation. State and local funding accounted for 20% of public school financing but only 1% of private school financing. Private schools derive more of their income from hospitals and related medical practices.