During the last 15 years, the performance-based allocation of funds (Leistungsorientierte Mittelvergabe, LOM) has become remarkably important at medical schools in Germany. In the meantime, all medical schools have established procedures adopting LOM to research. More recently, several medical schools have also begun to use LOM for teaching. The procedures used for both research and teaching are still very heterogeneous. For research, the DFG and the Wissenschaftsrat made suggestions to the medical schools, which were appreciated in a very normative way. The DFG is currently revising its recommendations in cooperation with the AWMF. In some federal states, LOM is also used to control the allocation of funds between different medical schools. Medical schools very often use the impact factor for the evaluation of individuals (postdoctoral qualification (habilitation), appointments), although the impact factor is not suitable for that purpose. In these cases, citation systems should be preferred.