Indirect Expenses Research Articles

Research Grants: Who Pays the Overhead?

Overhead (indirect cost) rates reimburse universities for the indirect expenses of faculty research, but raise the cost to agencies supporting that research. This study examines a sample of US universities between 1984 and finds that a 1% increase in the indirect cost rate led to a decrease in the number and amount of awards to faculty amounting to about 0.5% (for National Science Foundation (NSF) awards) and 0.2% (for Public Health Service (PHS) awards). Indirect cost revenue rose by appoximately 0.28% on NSF awards and 0.75% on PHS awards. Increases in the rate hurt awards to faculty at high-quality schools more than at low-quality schools.

An overview of housing provision in Papua New Guinea: The role of the private sector

Indirect expenses for accessing health care may place significant fiscal strain on Canadian families. Telemedicine alternatives, using email, telephone, and video conferencing, can mitigate such financial burdens by reducing travel and related costs. Our objectives were to assess costs that families incur visiting an outpatient pediatric surgical clinic, and family attitudes toward telemedicine alternatives.A survey was offered pre-consult to all families who attended pediatric urology and general surgery outpatient clinics over a three-month period.A total of 1032 of 1574 families screened participated (66.0%). Less than half (18.5%) of participants traveled over 200 km, and 32.9% spent over 4 hours in transit, round-trip. The proportion of participants who spent over $50 on travel and ancillary expenses was 33.0%. In 74.0% of families, 1 or more adults missed work. The proportion of families who perceived costs as somewhat high or high was 29.1%. Perceived cost was positively correlated to distance traveled, money spent, and missed work (p < 0.01). Most were comfortable with medical communication using technology; and 34.3%–42.7% would avoid an in-person clinic visit utilizing email, telephone, and video conferencing. Higher perceived cost (p < 0.001) and distance traveled (p < 0.01) were only weakly associated with greater willingness to substitute a clinic visit with video conferencing.Many families face high costs related to routine outpatient clinical visits, and there is a substantial willingness by them to access telemedicine alternatives, rather than the traditional face-to-face clinical visit.

Academia Careful On Direct R&amp;D Costs

Unlike many indirect expenses charged to federal funding agencies and garnering sensational headlines during the past year or so, universities seem to proceed very carefully, with a few exceptions, about how they spend their direct research dollars. The General Accounting Office delivered that assessment late last month during hearings of the Senate Committee on Governmental Affairs, chaired by Sen. John Glenn (D.Ohio). Because 70% of the $9 billion the government budgets annually for support of R&D at academic institutions goes to fund direct research costs, Glenn had asked GAO to ascertain whether adequate procedures, internal controls, and resources are in place and working effectively to protect the government's interests. On hearing GAO's conclusion, Glenn noted: Thankfully their findings did not show outrageous charges for most direct costs, unlike some of the recent indirect costs that have been noted in the press. Glenn had asked GAO to limit its investigation to recipients of National Science F...

Changes in Eastern Europe and the Soviet Union: The effects on China

The rapidly changing political, economic, and security policies in the Soviet Union and Eastern Europe in late 1989 and 1990 have added to the complications faced by Chinese leaders since they decided to suppress the unprecedented large-scale pro-democracy demonstrations in Chinese cities in spring 1989. These changes had an obvious “ripple effect” in China, encouraging prodemocracy forces and alarming Chinese leaders. They attracted strong positive attention from the developed countries of the West and Japan, and international financial institutions and businesses. This came at the indirect expense of China. And they accelerated changes in world politics (especially in U.S.-Soviet relations) and in the politics of government decision making in the West that promised to reduce China’s relative influence in world affairs in the 1990s.

The pros and cons of fecal occult blood testing for colorectal neoplasms.

Testing feces for occult blood is widely recommended as a means of detecting subclinical colorectal tumors. Guaiac tests such as Hemoccult are the most widely used, but chemical sensitivity is relatively low and the tests are affected by dietary peroxidases, the state of fecal hydration, and certain drugs. The newly devised HemoQuant and immunologic techniques appear more sensitive and specific, but they require further evaluation before widespread clinical usage can be recommended. Occult blood screening has both merits and weaknesses. Testing does uncover subclinical colorectal cancer, often at a relatively early stage, but whether this actually improves the prognosis remains to be proven. Benign neoplastic polyps are also detected, although it is debatable whether this is a valid rationale for screening. Test sensitivity for malignancy varies from good to moderate, but is poor for benign polyps. Specificity is usually around 97%-98%, yet the predictive value of a positive test for cancer is only about 10%; hence most test-positive individuals are needlessly subjected to invasive colonic investigations. Reported figures on public compliance with occult blood testing vary widely from excellent to poor. Published costs of screening are usually quite low, but these overlook important indirect and hidden expenses and are therefore misleading. On balance, the problems of occult blood testing currently appear to outweight the merits. This could change, however, with the newer testing techniques and with awaited mortality data from controlled clinical trials now underway.

Savings From Outpatient Antibiotic Therapy for Osteomyelitis

Clinical, economic, and epidemiologic data were used to compare the costs of conventional inpatient care of osteomyelitis with the costs of early-discharge treatment using a once-daily parenteral antibiotic at home. Estimated expenses included inpatient medical care, outpatient visits, supplies, child care, home care, transportation, and lost productivity. Early-discharge treatment was associated with lower medical direct, non-medical direct, and indirect expenses than conventional inpatient treatment. Estimated savings per patient ranged from $510 to $22,232 (demonstrating the wide differences in estimated savings when different sources of data on hospital costs are used). These savings are due to large decreases in inpatient costs, which are partially offset by increased outpatient costs. However, because outpatient costs are more often borne by patients than are inpatient costs, early-discharge treatment could be more expensive from the patient's perspective, despite its savings for the hospital and for society as a whole.

Less utilization of the clinical laboratory produces disproportionately small true cost reductions

Decreases in true expenses in the hospital clinical laboratory consequent to reduced utilization were estimated from four models. Each category of direct expense was adjusted according to projections and confirmed to the extent possible by actual experience. No projections of reductions in indirect expenses were made. Savings with reductions in utilization of 10 and 50 per cent of a single high-volume automated test amounted to 1.32 and 18.11 per cent of total expenses, respectively. Savings with reductions of 10 and 50 per cent in utilization of all tests amounted to 3.88 and 21.55 per cent, respectively. These modest savings should be important to the financial planning efforts of laboratory managers and institutional administrators confronted with cost-reduction mandates.

Cost of Coronary Angiography

<h3>To the Editor.—</h3> In his articles of cost and risk of coronary arteriography, Charles E. Hansing, MD (242:731; 242:735, 1979), demonstrated in a study of cardiac catheterization laboratories in the state of Washington that no correlation existed between the total number of cardiac catheterization procedures performed in a laboratory and the cost per procedure. Furthermore, no relationship existed between the risk per procedure and the number performed. Risk was more related to the type of patient undergoing angiography, with higher risk occurring in those with main left coronary stenosis, triple-vessel coronary disease, severe aortic stenosis, and congestive heart failure. These cost data corroborate findings of an impartial study of three hospitals in the San Francisco Bay area by the subcommittee on Cardiac Catheterization and Surgical Services of the Regional Medical Planning Committee (1976). Depreciation, wages and benefits, materials, services, and indirect expenses were taken into account. The three hospitals all

Treatment Costs for Patients With Head and Neck Cancer

A national health program is inevitable if medical care costs continue to soar as they have in recent years. Those of us treating patients with cancer of the head and neck are aware that the costs are high, but many are not aware of the actual figures involved. In this study, five typical head and neck cancer patients were selected, and the costs incurred by these patients were calcualted. Both direct and indirect medical expenses were considered and are presented. In addition, we report the representative costs of various treatment modalities. An awareness of medical care costs plus appropriate consideration of them in the planning and administration of treatment may help to reduce health care expenses. If we do not control these costs, the government undoubtedly will.

Zero-Base Budgeting of Hotel Indirect Expenses

A relatively new method for planning expenses has much to offer the lodging operator

Public policy considerations in the pricing of prescription drugs in the United States.

The economic value of prescribed drugs consumed in the United States probably reached $10 billion in 1973. Public interest in pricing practices is traced to the involuntary nature of patient illness in general and prescribing in particular, the intrinsic attributes of drug therapy, and the growing role of third-party programs in determining reimbursement for prescription items. Drug product pricing is criticized because of the large proportion of sales revenue consumed by indirect expenses. Nine branded products are cited where the median value of revenue consumed by indirect expenses is 91 per cent. Pricing problems related to increases in active ingredients, quantities sold, and package size are also examined. Pricing at the dispensing level is assessed in terms of its relationship to the true economic cost of this function. Significant imperfections are noted and a uniform cost-accounting system for pharmacies is recommended. The issue of prescription price posting is reviewed in some detail, and it is suggested that the posting of a unique dispensing fee in each pharmacy would optimize consumer sovereignty.

Field Estimating and Cost Control

The preparation of a preliminary outline, listing all data apt to be required, is a basic requirement for field estimating and cost control programs. Preparation of a formal classification of items of work should follow, considering adequate description division and proper indexing. Method of tabulation of indirect and overhead expense should be coordinated between various departments and projects. Periodic recapitulation of quantity and cost data can be keyed for efficient reference. Formal reports indicate independent courses of activity and are prepared at intervals to indicate trend. A labor productivity analysis will indicate variances between different projects and areas, based on a common standard. Recommended data for field estimates includes project records and reports, field manpower and equipment estimates, information from vendors and subcontractors, initial project estimate, data from previous projects, and handbook information. Application of field estimates includes construction alternates, analysis of extra work and revisions, and project cost estimates. A coordinated cost control program will assure adequate permanent property records and adequate information for productivity analysis, field estimating, and future estimating requirements.

Economical consideration on the electrolytic process of aluminium

On my fresh impression obtained during the foreign travel (Europe and U. S. A. 1960-1961), the new trend of the electrolytic process of Aluminium production is shortly described.The condition for minimum production costThe total production cost of aluminium will be able to be analysed into several terms, that is to say electric power cost, raw material cost, labor cost, indirect expense and tax. However these terms are also respective functions of current density, using a definite plant. [Refer to equ. 5 (electric power for electrolysis) 7 (electric power for mechanical power and lightning) 9 (material cost) 10 (labor cost) 11 (indirect expense) 12 (amortization) 13 (tax)] Thus, the total production cost (W) will be shown by equ. 14 and 15 (approximate equ.) in which current density is the most important variable. If we assume that all variable except current density are constant, and partialy differentiate the formula 16 (simplified form of 15) with variable Id to get the condition making W take the minimum value, the equ. 20 will be obtained. Letting ∂W/∂Id=O, and solve this formula regarding to Id. Thus the ID=2C11/PC10√(PC10)2+4C11(PC9+C8) satisfies the required condition that the production cost of aluminium is minimum. In this formula P is electric power price/kWh, C10 is shown by equ. 18 in which C3 is the slope of equation representing overvaltage (=C2+C3 logId), and C11, C9 and C8 are given by the equations 19, 17and 13 respectively. In this equation (22) we can see that P and C11 have remarkable influence for the value of the most preferable current density because of C10 can not so greatly change whatever a kind of anode carbon is.Operation with the most preferable current densityIt is very sorry that I can't calculate the actual value of the most preferable current density because of I have no detail datas for industrial production of aluminium. Then, let us consider how do we can realize the best condition, if Id given by equ. 22 is larger than the current density now usefully used in plants. (1) Froced cooling of bed carbon will be required, otherwise bath temperature will rise and accordingly the current efficiency will be remarkably enlowered. (11) Keeping the Al2O3 conc. in bath as low value as possible to make specific resistance of bath low. And devising automatic controll of the Al2O3 conc.. (111) To apply rather large prebaked block carbon as anode and further, to design cell construction with slope or vertical surface as cathode, using new material.

A Cost Study in the Preparations Department of a Small College Library

-r'_HE layman library user usually has no conception of the costs involved a in placing a book in a library, beyond the obvious one of the book's purchase price. There are countless examples of the well-meaning patron who donates a collection of out-of-date volumes to a library, expecting gratitude, and who is puzzled, hurt, and often insulted when confronted with the explanation that the cost of cataloging and preparing the books for the shelves would outweigh their practical value and use. The librarian, on the other hand, has tacitly accepted the high cost of book preparation through years of familiarity, without investigating the factors involved. Such unquestioning acceptance is basically dishonest; costs can be justified only in terms of the service they make possible. Careful studies of cataloging costs will have, therefore, a primary value to the library in suggesting methods for increasing economy and efficiency, as well as a secondary value in furnishing to the uncomprehending layman evidence of the need for larger library appropriations. The study described below is the record of a cataloger's personal approach to this problem. Since equipment, supplies, and overhead are beyond the control of the cataloger, his chief concern must be with labor costs. In the preparations department, books are prepared physically for use, arranged for convenience, and indexed according to their contents by means of a card catalog. The production of the preparations department may therefore be measured in units either of books (titles or volumes) or of cards. In an attempt to discover the relation between this production and its labor cost in the preparations department of a small college library, records were kept of work produced and of the number and cost of the hours of labor which produced it during the school year 1941-42. The data obtained are tabulated in Table i. These figures may be useful for budgeting and for comparison with other libraries or with other periods of time, but they offer no lever for economizing. They must be accepted as they stand because the labor involved is not analyzed in terms of the cost of individual processes. Reports of recent investigations of library costs were studied in an endeavor to determine their applicability to the problem at hand. Perhaps the most thorough investigation of library costs which has so far appeared is that conducted by Fremont Rider at Wesleyan University, Middletown, Connecticut.' His analysis covered all activities of the library, grouped in eleven major classifications. The costs of nonproductive or indirect labor, building rental, equipment, over,head, raw materials, and miscellaneous expenses were carefully allocated among these major classifications. From this analysis Mr. Rider emerged with a determination of the labor and the total