Re: IDC RATES David L. Entin 24 Feb 1994 11:27 EST

A favorite topic of mine... what to charge the pharmaceutical companies for
clinical trials.

At the UMASS Medical Center, we charge 25% of total cost.  Our federally
negotiated IDC rate is 57%MTDC.  We charge 25% because that seems to be the
going rate in the Northeast and indeed around the country.  This issue is
really a moot point.  The more involved I become with this activity, the more
I realize that drug companies are not interested at all in what the indirect
(overhead) rate will be.  As long as the per patient reimbursement does not
exceed the budget cap established by the company, they could care less what
you as an institution charge the clinician for conducting this study.  More
and more, I find myself arguing with the physician over the rate and not the
representative from the drug company.  Remember, this is not sponsored
research in the strictest sense; it is work for hire.

On another note, I am curious to hear from individuals about their experience
with drug companies when no patients are enrolled and the company requests that
you refund them the entire advance payment.  Do you return it or do you argure
that significant costs (e.g. preparing paperwork for the IRB; study coord.
time screening pts.) have been incurred and return none of it or just a
fraction of the amount.  I have had some success in this endeavor.