Operating Expenditures and Sponsored Research at U.S. Medical Schools: An Empirical Study of Cost Patterns

Program costs for four-year U.S. medical schools for 1964-65 have been estimated using multiple regression analysis. Expenditures were the dependent variables, and program workloads (for example, students enrolled) were the independent variables. The influence of state ownership and research emphasis on expenditures were also tested. Separate analyses were done for (1) sponsored research expenditures, and (2) all expenditures less sponsored research. The estimates of expenditures (less sponsored research) per student are comparable to the few available published figures for medical school program costs (based on faculty time studies). The results also indicate that sponsored research induces additional nonsponsored expenditures and that state schools are more expensive than nonstate schools. The results of our investigation of scale economies are inconsistent, but the best model shows a U-shaped average cost curve for the medical undergraduate program. Sponsored research expenditures show little relation to the size of medical undergraduate programs and are less at state schools.