It is my understanding that the salary cap only applies to federal funding
sources. Most of the investigators in my Department (I am the exception)
are staff physicians and receive a salary from the hospital. The hospital
accepts the NIH support for the PI's budgeted % effort with the $125K cap.
The remaining salary is covered by the hospital. Payroll takes care of
the nuts & bolts to make it happen.

Hope that helps.
Bruce

Bruce W. Steinert, Ph.D.
Department of Urology
William Beaumont Hospital
3601 West Thirteen Mile Road        (810) 551-2572 (Voice)
Royal Oak, MI  48073-6769           (810) 551-8107 (FAX)