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From page 2... ...
Sebp Cc) NOTICE This is the report of a project undertaken with the approval of the Councils of the Institute of Medicine and of the National Academy of Sciences.
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INSTITUTE OF MEDICINE COSTS OF EDUCATION IN THE HEALTH PROFESSIONS Report of a Study Parts I and II January 1974 Supported by U.S. Department of Health, Education, and Welfare Contract No.
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INSTITUTE OF MEDICINE Study of the Costs of Education in the Health Professions STEERING COMMITTEE Chatrman Julius RICHMOND, M.D., Director, Judge Baker Guidance Center, Boston Members Martin CHERKASKY, M.D. Director, Montefiore Hospital and Medical Center Eli GINZBERG, Ph.D., Litt.D., Professor of Economics, Graduate School of Business, Columbia University James F
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INSTITUTE OF MEDICINE John R Hogness, M.D., President Study Staff Ruth S
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FOREWORD The rapid growth of health professional education in the United States since World War II has been accompanied by an increasing complexity of the educational institutions and of the financing of their programs. In the mid-1950s, some pioneering efforts to deter- mine the costs of education, research, and health services were un- dertaken by Augustus J
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kKkkkk The individuals who aided in this study are too numerous for adequate acknowledgment. The Institute of Medicine's study staff wishes first to thank the Steering Committee, whose members were always available to us for policy guidance, assistance, and advice, and devoted many long hours to the study.
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From page 11... ...
Preface Costs of health professional education have long been topics of discussion among educators, members of professional associations, and Federal and state officials. The complexity of many health profes- sional schools and the interrelationships between teaching, research, and patient care in the educational process make cost determination both difficult and controversial.
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student in these fields for a sample of schools during the 1972-73 academic year. Physicians' assistants and dental therapists were not studied for this report because educational programs in those categories are Still in a developmental stage.
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conducting the study. It is the judgment of the study group that ap- plying the faculty time data for one year to actual expenditures in- curred in another year and then using the resulting cost estimate for both years would not accurately reflect resource costs for a given year.
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(5) The report shall also inelude recommendattonse coneerning how the Federal Government can uttlize educattonal cost per student data to determine the amount of capitation grants under the Public Health Service Act to each health professional school.
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SUMMARY Estimates of the costs of education in the health professions cannot be derived by routine methods of cost accounting. The activities that constitute education must be defined before costs can be assigned.
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FIGURE S-2 Distribution of Reported Income and Expenditures of Eight Types of Health Professional Schools, by Category, 1971-72 Total Income = $3.1 billion® Source of income Tuition and fees 9.9% Unrestricted state support 18.0 Unrestricted Federal support 6.7 Endowments and gifts 2.7 Research 19.9 Teaching and training 19.3 Diagnostic patient care and other sources 15.3 Other 8.2 "Shaded srees indicate unrestricted income Total Expenditures = $3.1 billion Distribution by profession Medicine 63.2 % Osteopathy 1.7 Dentistry 6.4 Optometry 6 Medicine Pharmacy 3.6 Podiatry 2 Veterinary medicine 2.4 Nursing 21.9 1x
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FIGURE S-3 First Degree Graduates from Seven Types of Health Professional Schools, 1973 Podiatry 259 Veterinary Medicine 1,267 Medicine 10,578 Optometry Dentistry 688 4,185 Osteopathy 649 Total: 22,900 Graduates
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Education Costs The process of education in the health professions includes not only instruction, but also those amounts of research and pa- tient care considered essential to education. This definition takes into account that the process depends on an educational envi- ronment that supports the development of faculty as well as student skills.
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From page 21... ...
FIGURE S-4 Average Annual Education Costs per Student by Profession, 1972-73 $13,000 - -- $12,650 Instructional Acti vities so i Patient Care and Research Activitie s Essential to E ducation 11,000 } -- 8.000 $39 60 = ol vol 3,000 1,000 : De nt is tr y Op to me tr y P h a r m a c y Po di at ry Ve te ri na ry S Me di ci ne Nu rs in g As so ci at e De gr ee Nu rs in g Di pl om a Nu rs in g
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