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Scott Harris
sharris@aamc.org

AAMC Reporter: January 2007

AAMC President, Darrell G. Kirch, M.D.

A Word from the President:
"What Comes After a Hard Landing?"

When it comes to federal funding for the National Institutes of Health (NIH), it no longer is a world of predictable "boom-bust-boom" cycles. Today, the funding picture is much more complicated, particularly given the political and fiscal realities we face.

When the completion of the NIH budget doubling coincided several years ago with the financial challenges of post 9/11 America, we knew it could lead to what many in our community called "a hard landing." It is proving to be even more than that. In recent years, the NIH budget has been declining in real dollars when inflation is factored in, while medical schools have greatly expanded their research capacity. As NIH Director Elias Zerhouni observed in the November 17, 2006, issue of Science, this has led to the tragic confluence of a surge in grant applications with no immediate hope of funding most of them.

In recent weeks, two signs for optimism have emerged: voters clearly voicing desire for a change in our country's direction, and last-minute passage of the NIH reauthorization bill before the 109th Congress adjourned in December.

What do these events mean for our community? Should we take them as signs that the nation now is ready to increase its commitment to the NIH and reaffirm research as a public good? Or, should we be deeply worried about future NIH funding given the nation's massive structural deficit ($248 billion in fiscal 2006 alone), and the difficult challenge lawmakers face in setting national priorities?

The answer, I believe, is "both." While the public—and many in Congress—share our community's commitment to research and have deep faith in the power of science, our nation's unsustainable fiscal course presents a massive challenge. Here are five steps I believe we must take to help us navigate through this period of uncertainty:

First, we must communicate our progress and tell our success stories.With 55 percent of the NIH extramural budget awarded to scientists at our medical schools and teaching hospitals, we have a unique opportunity—and responsibility—to convey the benefits resulting from that research partnership. A major success story came last month as the news was announced that breast cancer diagnoses dropped 15 percent in 2002-03 because of NIH-funded research that led to fewer women using hormone replacement therapy.

At the national level, we are continuing to help policymakers and the public better understand our NIH partnership through the AAMC Fulfilling the Promise campaign. At the local level, we are showcasing the work of medical school and teaching hospital investigators through research festivals and appreciation days. We must be careful, however, not to over-promise or raise expectations unrealistically. In providing information on new advances and research now underway, we must explain that research advances require sustained investment over time. It is a marathon—not a sprint!

A second step is to broaden our research portfolios by drawing on alternative sources of federal funding, such as the Agency for Healthcare Research and Quality, the Centers for Disease Control and Prevention, the Department of Defense, the Department of Energy, the National Science Foundation, and others, as so many of our institutions already do. However, we all must face the fact that these agencies and departments are in the same situation as the NIH in competing for scarce federal research appropriations.

Third, we must pursue relationships with "non-traditional" partners, including state houses and local chambers of commerce, and enlist their support in advocating for NIH funding. In addition to helping these new partners better understand the critical role medical schools and teaching hospitals play in conducting life-saving research, we must demonstrate how the work of our institutions is an economic engine driving the national as well as local economies. According to an updated analysis by the firm of Tripp Umbach, the combined economic impact of AAMC-member institutions in 2005 equaled more than $451 billion and accounted for more than three million full-time jobs (directly or indirectly) nationwide. This new analysis, which provides similar data on a state-by-state basis where AAMC members are located, also shows how our institutions—through medical education, business development, patient services, and research—generated more than $20 billion in total state tax revenue that same year.

Fourth, to the extent we rely upon complex research partnerships with the private sector, we must demonstrate accountability by rigorously managing potential financial conflicts of interest (COI). Preserving public trust in what we do is essential. As a community, we have made tremendous progress on this issue and, through the work of the AAMC Task Force on Financial Conflicts in Clinical Research, have articulated principles and developed clear guidelines for managing individual and institutional COI. Nevertheless, we still have ground to gain in terms of public trust, and the AAMC will team this year with the Association of American Universities in a new joint advisory committee to explore this issue further.

Fifth, we must demonstrate that we are good stewards of the diverse resources we already receive from tuition and appropriations, grants and contracts, and physician and hospital revenues. The public, unfortunately, is largely unaware of the degree to which our institutions must subsidize the research they undertake. We need to point out that our institutions are using their own limited resources to fully share the burden of building our nation's scientific infrastructure.

As the 110th Congress convenes this month, it is impossible to predict what will happen with regard to future policy or NIH funding. What comes next after this hard landing will depend in no small part on the actions we take. Above all, we must remember that we live in an age of unparalleled promise for medical research, and must continue communicating the critical role our medical schools and teaching hospitals play in conducting that research and improving the nation's health.

Darrell G. Kirch, M.D.
AAMC President


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