Dr. Hayashi had been a naval doctor and learned Reiki from Usui Sensei in 1925. Following his training with Usui, he started a clinic in Tokyo and expanded on Usui's healing methods. It is believed that he created the hand position system, which concentrated on the head and torso, covering the body's major energy centres.

Dr. Hayashi compiled a manual on how to use the hand positions for certain ailments, which he may have given to his students. He also initiated around 15 Reiki Masters, including Mrs Takata.