Based on data from the Annual Medical School Questionnaire of the Liaison
Committee on Medical Education (LCME), to which 100% of schools responded,
we found that revenue supporting programs and activities of the 125 accredited
medical schools in the United States totaled $36,997 million in 1997-1998.
A large proportion of revenue (79%) was derived from 3 sources: practice plans
($12,559 million; 33.9%), grants and contracts ($10,916 million; 29.5%), and
hospital support ($5741 million; 15.5%). An analysis of revenue trends revealed
that medical schools, in aggregate, have continued to experience growth during
the last 2 years. However, the aggregate numbers mask considerable variation
among schools with regard to changes in financing. Between 1995-1996 and 1996-1997,
46 schools (37%) reported constant-dollar declines in the sum of practice
plan and hospital revenue, and 50 schools (40%) reported a decline from 1996-1997
to 1997-1998. The financial data reviewed in this report demonstrate the continued
dependence of medical schools on faculty-generated sources of revenue and
confirm the perception that a growing number of medical schools are experiencing
reductions in key sources of financial support. Current and projected reductions
in teaching hospital revenue due to the implementation of the Balanced Budget
Amendment are expected to erode further hospital support for medical school
programs and activities.
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