One of Dr. Usui's pupils was Dr. Chujiro Hayashi. Dr. Hayashi continued in the steps of Dr. Usui by opening a Reiki clinic which remained open until 1940. Dr. Hayashi is responsible for the formal aspects of Reiki which are taught today: namely the hand positions and the science-based practices held within Reiki. The fame and popularity of Dr. Hayashi's clinic spread throughout Japan, and it was quite successful at bringing healing energies to many people.
In 1925, as a former Captain and Doctor in the Imperial Navy, Chujiro Hayashi trained with Usui Sensei. He and the other Naval Officers Ushida and Taketomi were the last people to be taught by Usui. It appears that Hayashi may have trained with Usui for only 9 months. Dr Hayashi cannot have learned the inner teachings of Reiki in such a short space of time, nor reached the higher levels of Mastership. Together with the other naval officers, Dr Hayashi founded his own society in 1931, five years after Usui died. It was called Hayashi Reiki Kenyu-kai, which means Hayashi Reiki Research Centre. Dr Hayashi was a founder member of the Usui Reiki Ryoho Gakkai, a 'memorial society' set up after Usui's death. The 'Gakkai was described by Tatsumi (one of Hayashi's Master students), rather disparagingly, as an 'officer's club'.
Hayashi's clinic had 8 beds and 16 healers. Practitioners worked in pairs, each pair to a bed giving treatments to patients and there were two or more people that treated clients. He kept detailed records of the treatments that were given, and used this information to create 'standard' hand positions for different ailments which ended up being published in the training manual given to the Gakkai's students (the Usui Reiki Hikkei). In fact this work had already been started when Usui was alive, and it seems that Dr Hayashi was carrying out the research with Usui's knowledge and approval (however this cannot be confirmed). This guide to 'hand positions for different ailments' is very much trying to mould Reiki into the 'medical model', which was very different from Usui's simple and intuitive approach.
Dr Hayashi had made some changes to the system he had been taught by Dr Usui and Hayashi's focus was very much on hands-on healing. Dr Hayashi would teach First Degree over a five-day structured course, with each day's training taking 90 minutes, and students would receive his more complicated attunements on four occasions during this training. Dr Hayashi trained 17 Reiki Masters and produced a 40-page manual, which contained the hand positions for different ailments. Since Dr Hayashi would not have been taught Reiju by Usui Sensei, it would seem that he in fact learned the technique when Eguchi joined the Gakkai for a year.
Dr Hayashi has played 2 important parts in Western Reiki.
Number one is that he is probably the originator of the hand position system used here in the West.
Number two is that he initiated Mrs Takata to Reiki Master which brought Reiki to the West.
Hayashi originally had seven to eight hand positions that covered the upper body only. These positions are based on the Eastern traditional healing methods (such as Chinese Medicine) that the "body" is the head and torso, the limbs are considered "external". When treating these positions, which cover major energy centre's (acupuncture points), the energy will flow not only through the body but also to the arms and legs (using meridians). Therefore it is only necessary to treat the head and torso in order to treat the entire body mind.
Usui Sensei used head positions only, and then treated any problem area on the body. He also gave additional positions for treating specific conditions. It seems that Hayashi may have adopted further hand positions and that these may have been the base for the hand positions used in the western world. These hand positions that cover the whole body gives a better overall flow of energy around and through the body. During his work with Reiki Dr Hayashi also did many 'home visits' to do healing work, one of the 17 Reiki Masters that he initiated was Mrs Takata.