The NIHR CRN Industry Costing Template

1
The NIHR CRN Industry Costing Template

• Christopher Burdette
• Industry Costing Contracts Manager
• NHS RD Development Day
• Novotel, Euston Road, London
• 5 May 2009

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The Challenges Of Costing Commercial Studies In
England Illustrates The Need For A Costing Model
The perception from Industry has been
Adopting a costing model can...

• Wide variation of prices and processes across NHS
  
• Widely variable operating overheads
• Prolonged set up times - adds to cost
• England comparatively high cost of living to
  the US and parts of Europe
• UK cost effectiveness lagging other developed
  nations value for money
• Investigator often unmotivated or committed

• increase investment and commitment in clinical
  research by addressing Industrys needs and
  aligning strategies
• enable Industry to quickly cost research for the
  UK and engage investigators at an earlier stage
• greatly increase the UKs profile as innovators
  and help ensure that we get a sit a the table
  with future global clinical programmes
• increase the amount and diversity of research
  and treatments available to patients new
  medicines with new benefits
• ensure that the NHS is fully reimbursed for
  undertaking all commercial research

Standardised Commercial Costing Model
Challenges
Benefits
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In Early 2007, The NIHR Costing Project Set Out
Clear Objectives And Goals In The Development Of
Its Costing Model

• Provide clear methodologies and transparent
  prices for both the NHS and Industry
• Ensures that the NHS is fully reimbursed for
  commercial research activities in accordance with
  operating and financials requirements
• Indentify standard rates for essential research
  activities that are both common and differing
  across the whole of the NHS
• Create a focused negotiating framework to
  facilitate timely and accurate study costing
• Supplement all costing activities with clear
  guidance and support
• Ensure that costing process and negotiations can
  be implemented through the NIHR networks

Transparency, Clarity And Simplicity All Central
Tenets Of The NIHR CRN Costing Project
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The Development Of The Industry Costing Template
Involved Consultation And Collaboration With All
The Key Research Groups
Consulting Agencies Organizations
Fundamental Questions To Address
Development? Collaboration? Agreement?
How to? Operation?
Applicability? Agreeability?
Working Models? Best Cases?
Collaborations are ongoing and continue to
support the development and refinement of the
Industry Costing Template
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The Industry Costing Template Is Developed From
NHS Direct Cost Benchmarking Ensured Its Accuracy
Testing the Industry Costing Template was done in
two parts

• Retrospective benchmarking
• In total 85 iterations were developed
• 5 companies were involved
• 11 studies were provided
• 5 potential rates for overheads and capacity
  building were tested
• Lowest, median highest rates of PbR MFF were
  tested

• Piloting Real-Time Benchmarking
• Six month pilot completed in January 2008
• 12 studies were run through the Template
• 9 companies were involved
• All TCRNs were involved

Benchmarking demonstrated that 70 Overheads and
20 Capacity Building elements added to DIRECT
COSTS, best fit commercial research costs

• Ongoing Work and Benchmarking
• 11 months of running use
• All subsequent issues have been addressed on
  constructive basis
• Feedback -gt Group Input -gt Change

Work in the coming months to objectively review
the costing of Network adopted studies within
England via the Industry Costing Template
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The Industry Costing Template Was Launched In May
2008 To A Positive Reception From The NHS And
Industry Alike
The Industry Costing Template Uptake Since Launch

• Usage
• 4,000 downloads off the website
• 00s reviews and study budgets developed via the
  Industry Costing Template

• Feedback
• 85 of the feedback received was positive
• 70 of the feedback to date have been from NHS
  Trusts working with the Template

• Bio/Pharmaceutical Industry
• Several companies use exclusively the Industry
  Costing Template to cost all their UK studies
• Industry Costing Template has been used to cost
  research in nearly every therapy area

I have used the CRN costing template as a guide
for putting a budget for the study together,
which has been agreed. It has been a very helpful
and useful document to have had access to. -
Affiliate Project Manager, Pharmaceutical Co.
I very much like working with the costing
template. It has made the whole process very
transparent and negotiation on the basis of time
rather than cost is generally easy - RD
Manager, RD Office NHS Trust
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At Present, Effective Communication And Usage Are
Key To The Success Of The Template

• Ensuring the success of the Industry Costing
  Template relies on communication with Industry,
  Investigators, Trusts and Universities
• This requires
• Supporting the understanding, usage and
  negotiations of the Industry Costing Template
  with stakeholders for adopted and non-adopted
  studies
• Clearly outlining the methodologies and providing
  guidance on the use and development of the
  Industry Costing Template
• Promoting the use of the Industry Costing
  Template with all stakeholders to build
  experience and knowledge
• Developing robust feedback communications with
  users to support the future development and
  refinement of the Industry Costing Template
• Clarifying terminology and language Within The
  NHS commercial research costing environment
• Explaining the role of the Payment By Results
  Market Forces Factors and its function within the
  Industry Costing Template

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The Industry Costing Project Long-Term Objectives
Global Gold Standard
Increase promotion and marketing of the Industry
Costing Template
Data and evidence to support the UKs cost
proposition on a global level
Industry Costing Template embedded within the UK
as the default costing framework for ALL key
stakeholders
Continue to review and refine the Industry
Costing Template for key stakeholders
Aim for complete NHS and Industry acceptance
Results
Continue to demonstrate the advantages and
efficiencies of the Industry Costing Template
Monitor and catalogue costing activities via the
Costing Template
Become Default UK Costing Model
Respond and anticipate to the changing needs of
research within the UK
Universal Buy-In Support
Responsive Service