Financial Implications of Increasing Class Size Marc J Kahn, MD, MBA Tulane.
-
Upload
leslie-paul -
Category
Documents
-
view
217 -
download
0
Transcript of Financial Implications of Increasing Class Size Marc J Kahn, MD, MBA Tulane.
![Page 1: Financial Implications of Increasing Class Size Marc J Kahn, MD, MBA Tulane.](https://reader036.fdocuments.in/reader036/viewer/2022062322/5697bf8e1a28abf838c8cac2/html5/thumbnails/1.jpg)
Financial Implications of Increasing Class Size
Marc J Kahn, MD, MBATulane
![Page 2: Financial Implications of Increasing Class Size Marc J Kahn, MD, MBA Tulane.](https://reader036.fdocuments.in/reader036/viewer/2022062322/5697bf8e1a28abf838c8cac2/html5/thumbnails/2.jpg)
How much does it cost to educate a medical student?
![Page 3: Financial Implications of Increasing Class Size Marc J Kahn, MD, MBA Tulane.](https://reader036.fdocuments.in/reader036/viewer/2022062322/5697bf8e1a28abf838c8cac2/html5/thumbnails/3.jpg)
Henry’s Hotdogs
![Page 4: Financial Implications of Increasing Class Size Marc J Kahn, MD, MBA Tulane.](https://reader036.fdocuments.in/reader036/viewer/2022062322/5697bf8e1a28abf838c8cac2/html5/thumbnails/4.jpg)
Parable
Henry’s Hotdogs is a small business that sells hotdogs by the road. Henry borrowed money from the local bank to fund this business venture. During the first week, Henry spent $50 to sell 25 hotdogs. Over the next several weeks, Henry had the following expenses:
Week Cost Hotdogs sold
2 $57 32
3 $42 17
4 $64 39
5 $86 61
![Page 5: Financial Implications of Increasing Class Size Marc J Kahn, MD, MBA Tulane.](https://reader036.fdocuments.in/reader036/viewer/2022062322/5697bf8e1a28abf838c8cac2/html5/thumbnails/5.jpg)
How to figure out costs:
10 20 30 40 50 60 700
10
20
30
40
50
60
70
80
90
100
Number sold
Cost
Y-intercept = fixed costs
Slope= variable costs
![Page 6: Financial Implications of Increasing Class Size Marc J Kahn, MD, MBA Tulane.](https://reader036.fdocuments.in/reader036/viewer/2022062322/5697bf8e1a28abf838c8cac2/html5/thumbnails/6.jpg)
Lets do the same for medical schools
MSPS Database from the AAMC gives 7 sources of revenue for each medical school
Assume only three streams part of medical education:
Total Tuition and Fees
Total Government and Parent Support
Total Revenue from Gifts and Endowment
![Page 7: Financial Implications of Increasing Class Size Marc J Kahn, MD, MBA Tulane.](https://reader036.fdocuments.in/reader036/viewer/2022062322/5697bf8e1a28abf838c8cac2/html5/thumbnails/7.jpg)
Methods (cont.) Categories of revenue not used:
Total Federal Research and Grants
Other Grants and Contracts
Hospital Transfers
Other Revenues
![Page 8: Financial Implications of Increasing Class Size Marc J Kahn, MD, MBA Tulane.](https://reader036.fdocuments.in/reader036/viewer/2022062322/5697bf8e1a28abf838c8cac2/html5/thumbnails/8.jpg)
RevenueCosts Allocate 60% of revenue to cost (Ridley et
al, Academic Med 2002)
Sensitivity analysis using 50% and 40%
![Page 9: Financial Implications of Increasing Class Size Marc J Kahn, MD, MBA Tulane.](https://reader036.fdocuments.in/reader036/viewer/2022062322/5697bf8e1a28abf838c8cac2/html5/thumbnails/9.jpg)
Results
![Page 10: Financial Implications of Increasing Class Size Marc J Kahn, MD, MBA Tulane.](https://reader036.fdocuments.in/reader036/viewer/2022062322/5697bf8e1a28abf838c8cac2/html5/thumbnails/10.jpg)
Sensitivity Analysis
a As published in Ridley GT, Skockelak SE, Farrell PM. Mission aligned management and allocation: successfully implemented model of mission-based budgeting. Acad Med. 2002;77(2):124-9.b All 28 are Private Schools
![Page 11: Financial Implications of Increasing Class Size Marc J Kahn, MD, MBA Tulane.](https://reader036.fdocuments.in/reader036/viewer/2022062322/5697bf8e1a28abf838c8cac2/html5/thumbnails/11.jpg)
Results
Covering Costs*33%
Not Covering Costs*
67%Private
9%
Public91%
Private,
100%
0
2
4
6
8
10
12
14
16
18
$10 $12.5 $15 $17.5 $20 $22.5 $25 $27.5 $30 $32.5 $35 $37.5 $40 $42.5 $45 $47.5 $50 $52.5 $55 $57.5 $60 $62.5
Nu
mb
er
of
US
Sch
oo
ls
How much schools charge each student, in thousands
Averagecost of
educating one medical student for
one year($62,877)
Low end of 95% CI for avg. cost to educate one
med student($38,226)
* “Schools covering costs” charge their students more than $38,226—the low end of the 95% confidence interval for cost-per-student (no schools charged as much as the mean cost-per-student of $62,877). Calculations for public schools and private schools are based on in-state and out -of-state tuition and fees, respectively, reported in the AAMC Tuition and Student Fees Survey.
Figure 2: What percentage of US schools are covering the costs of medical education at $38,226 (lower 95%CI)?
![Page 12: Financial Implications of Increasing Class Size Marc J Kahn, MD, MBA Tulane.](https://reader036.fdocuments.in/reader036/viewer/2022062322/5697bf8e1a28abf838c8cac2/html5/thumbnails/12.jpg)
Conclusions Based on our cost analysis, medical schools
are not covering costs with tuition revenue
Our best point estimate of the cost required to educate a medical student in the US is $62,877
Increasing class sizes by 30% will cost an average of at least $5 million per school
![Page 13: Financial Implications of Increasing Class Size Marc J Kahn, MD, MBA Tulane.](https://reader036.fdocuments.in/reader036/viewer/2022062322/5697bf8e1a28abf838c8cac2/html5/thumbnails/13.jpg)
Investigators Danny A. Schieffler, PhD
Benjamin Azevedo, BA
Richard A. Culbertson, PhD
Marc J. Kahn, MD, MBA
Tulane University School of Medicine and School of Public Health and Tropical Medicine