The cost of research: an analysis of Auckland Healthcare's research activity.

AIM: Research informs clinical practice. It may also increase the cost of health service delivery, especially in an academic medical centre, where there is a greater concentration of research activity. Data on the cost of research in New Zealand Hospital and Health Services, particularly those providing teaching and other academic opportunities, are scarce. This article describes a method for collecting and analysing data related to research activities at Auckland Healthcare, New Zealand's largest Hospital and Health Service and, in association with the Auckland School of Medicine, the largest clinical research facility. METHOD: During the 1996/1997 financial year, 190 research projects received Auckland Healthcare management approval. The nature, purposes, and budget for each project were recorded on a dedicated database. The financial data excluded the University-funded components of research. RESULTS: Data presented for the 1996/1997 financial year reveal the volume, nature and cost of research for Auckland Healthcare. The budgeted external revenue was $1.6M, with 52% coming from commercial sponsors. Interestingly, 8% of the research projects during this period were budgeted to generate savings to the cost of standard clinical care. This was achieved primarily through the sponsorship of pharmaceuticals in commercial clinical trials. When these revenues and savings are deducted, the net budgeted cost of research at Auckland Healthcare in the 1996/1997 financial year was $86 572, or only 0.02% of total cost. CONCLUSION: The Ministry of Health and the Health Funding Authority are voicing concern over the diversion of clinical care funding for research in Hospital and Health Services. While these concerns might be philosophically challenged on the grounds that sound research informs best clinical practice, it is also clear from these results that the net cost of research at Auckland Healthcare is indeed very small.