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Enclosed is a copy of the proposal of the Committee on Private
Practice of the Clinical Staff of the Medical School. This proposal has
been reviewed by the Dean and approved by him, and I went over it
yesterday with Dr. Vest.

The basic change in the proposal is a lift of the maximum
compensation by 12 1/2%. Hence, a doctor receiving $20,000 would go
to $22,500 and one receiving $15,000 would go to $16,875.

There is one further change in the distribution of surplus. At
the present time, this is divided 40% to the doctors, 40% to the
Research and Development Fund and 20% to departmental reserve. They
are proposing that this split be 50 - 30 - 20, subject to the
reservation that under no circumstances will the Research and
Development Fund be less than $40,000 per year.

With the increase in limits of 12 1/2%, I do not believe the
change from 40 to 50 in the distribution will result in any increase
above the amount these men are now receiving from the distribution
of surplus.

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If you approve of this plan, and it seems quite reasonable to me,
it will require the approval of the Board before it can be put into
effect.