Sidebar: "The Financing of Medical Schools" - For Further Information

A DEMOTION? The plaintiffs’ attorney, Jeffrey Kramer, notes that the reduction in their contract term was not accompanied by a reduction in their duties.
Twenty-three tenured members of the basic science faculty at the University of Southern California (USC) School of Medicine have sued the Los Angeles-based university for $54 million, alleging that USC has breached their contracts and is violating established principles of academic tenure and academic freedom. Although the case is symptomatic of fiscal problems facing medical schools nationwide, it's unclear whether other schools will follow USC's lead. According to a November 1996 report from the Association of American Medical Colleges (AAMC) entitled "The Financing of Medical Schools," increased competition from managed care is rendering the funding for medical education uncertain, and will "undoubtedly require changes in institutional culture and organization."

In June 1995, the USC administration, citing...

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