HomePoliticsThe Unseen Expenses: Breaking Down Indirect Costs in NIH Research

The Unseen Expenses: Breaking Down Indirect Costs in NIH Research

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Behind-the-scenes workers at research institutions are facing uncertain futures as the National Institutes of Health proposes a 15% cut to indirect costs. These hidden heroes play a crucial role in supporting essential services and advancing medical research.

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Pamela Canaday loves her job as a flow cytometry specialist at Oregon Health & Science University. For the last 20 years, she has been running tests that help researchers identify the types of cells in a sample. A self-proclaimed ‘machine junkie,’ Canaday says she was born for this work and wouldn’t trade it for anything.

However, when Canaday heard about the National Institutes of Health’s (NIH) plan to slash indirect research costs by 15 percent, she became worried, concerned, and terrified. The NIH’s proposal would cut funding for grantees starting February 10, putting many jobs – including hers – in jeopardy.

DATACARD
Understanding the National Institutes of Health (NIH)

The National Institutes of Health (NIH) is a part of the United States Department of Health and Human Services.

Established in 1887, NIH is the nation's medical research agency.

Its main campus is located in Bethesda, Maryland.

The NIH conducts medical research to improve health and save lives.

It supports clinical trials, conducts research on various diseases, and provides funding for researchers.

With over 27 institutes and centers, NIH is a leading global authority on medical research.

The Importance of Indirect Costs

Indirect costs, also known as facilities and administrative costs, cover operating expenses that can’t be tied to specific projects. These funds support essential services like Wi-Fi networks, waste disposal, access to scientific journals, and administrative labor. In fiscal year 2023, the NIH allocated around $9 billion to indirect costs.

DATACARD
Understanding Indirect Costs

Indirect costs, also known as overhead costs, are expenses that cannot be directly attributed to a specific project or product.

These costs include rent, utilities, insurance, and salaries of non-production employees.

According to a study by the Project Management Institute, indirect costs account for approximately 50% of total project costs.

Effective cost management requires accurate identification and allocation of indirect costs to ensure transparency and informed decision-making.

A federal judge has paused the NIH’s payment-cutting policy after several lawsuits were filed by states, universities, and organizations that serve research institutions. However, the real impact of these proposed cuts is still uncertain.

The Hidden Heroes of NIH Research: Behind-the-Scenes Workers

To understand the potential consequences of the NIH’s plan, Science News spoke with three individuals who do critical work behind the scenes: Pamela Canaday, senior systems engineer Nate Klingenstein of Johns Hopkins University, and pre-award administrator Blake Cowing of Emory University.

DATACARD
Unlocking Medical Breakthroughs: NIH Research

The National Institutes of Health (NIH) is a leading medical research agency in the United States.
With an annual budget of over $41 billion, the NIH funds approximately 50% of all biomedical research conducted in the US.
The organization's mission is to seek fundamental knowledge about the nature and behavior of living systems and apply that knowledge to improve health and reduce illness.
The NIH supports a wide range of research, from basic scientific inquiry to clinical trials, with a focus on diseases such as cancer, HIV/AIDS, and Alzheimer's disease.

The Importance of Behind-the-Scenes Workers

research_funding,funding_cuts,indirect_costs,behind_the_scenes_workers,scientific_support,nih_research

Blake Cowing has been helping scientists compile research proposals for almost 15 years. He supports researchers at Emory by allowing them to focus on their projects rather than getting bogged down in paperwork. ‘Any number of mistakes can jeopardize that research project,’ he says.

Cowing emphasizes that indirect costs are real and necessary expenses that support research. These funds cover not only building space and utilities but also the people who work in regulations, compliance, administration, legal, and IT. He worries about potential budget cuts leading to layoffs in cities where many residents rely on local universities for employment.

Lives Depend on Crucial Services

Nate Klingenstein, a senior systems engineer at Johns Hopkins University, is part of a small team that manages login services for computer applications, including the system doctors use to prescribe medications. He and his colleagues maintain around 2,000 applications and ensure they’re compliant with privacy protection laws like HIPAA.

Klingenstein says cutting his job would not only hinder essential healthcare services but also slow medical advances. For instance, Johns Hopkins is participating in the Undiagnosed Diseases Network, a collaboration among several research institutions to treat patients with mysterious diseases. Klingenstein will soon integrate a secure connection to the network, allowing Johns Hopkins doctors to access and share data.

The Flow Cytometry Nerd

Pamela Canaday’s core lab provides institution-wide access to expensive equipment that smaller labs on campus may not be able to afford. The basic research using flow cytometry has led to treatments for cancer and other diseases.

Canaday emphasizes that she, along with many others, is essential to the research process. ‘If we can’t have a good support team… then research isn’t going to be able to happen,’ she says. Canaday stresses that indirect costs support core labs at Oregon Health & Science University and other academic institutions around the country.

The Consequences of Proposed Cuts

Cowing, Klingenstein, and Canaday all agree that cutting indirect costs would have a significant impact on research institutions and the people who work behind the scenes to make science possible. They worry about potential layoffs, reduced collaboration between universities, and slowed medical advances.

As the NIH’s plan unfolds, it’s essential to consider the real-life consequences of these proposed cuts. The individuals working behind the scenes are not just administrative staff; they’re critical components of the research process.

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