1. Clinical Research Center Cost Analysis Steven Anderson Jessica Lapsia Phil Torrisi Roderick McQuirter

2. Agenda Problem Statement Project Overview Questions

3. Problem Statement Center’s funding cut, putting pressure on daily operations Requires new focus on cost accounting analysis and processes – Other CTSI’s facing similar pressures Indiana CTSI to undertake a thorough activity based costing analysis to determine appropriate rates for investigator and sponsored research

4. Project Objective Determine appropriate CTSI management cost structure – Identify service centers and cost centers Provide allocation worksheet to distribute costs to appropriate cost centers – Identify cost drivers – Allocate costs from service centers to cost centers Determine activity based costing rates – Determine activity rate that reflects costs incurred Provide rate worksheet to determine appropriate rates for CTSI based studies

5. In Patient Out Patient SERVICE CENTERS Rent Admin ClarianNursingLab SERVICE CENTERS Rent Admin ClarianNursingLab EXPENSE FROM GENERAL LEDGER Costs are collected in service and cost centers. Each service center’s costs are allocated out to cost centers where activity rates are determined. Proposed Cost Structure

6. Cost Center Allocation Costs are allocated using the direct allocation method. Costs are allocated 100% out of service centers and into direct cost centers. Illustrative

7. Activity Rate Determination Illustrative Time analysis and labor rate analysis provide activity rates Activity Rate Activity Time Labor Rate per Hour

8. Questions ?