Baylor, MD Anderson among research institutions that could lose millions under NIH grant policy

HOUSTON – The Houston Chronicle reports that Houston’s largest health care institutions stand to lose tens of millions of dollars under a new National Institutes of Health policy that slashes grant funding for medical research, triggering widespread concern among researchers and university administrators. The funding in question, also called “indirect costs,” reimburses grant recipients for overhead costs associated with research, such as the cost of support staff and maintaining lab space. The policy change would not affect direct costs, which go directly toward specific research projects. The NIH on Friday announced plans to dramatically lower the rate at which it reimburses indirect costs, drawing a lawsuit from 22 states (not including Texas). A federal judge blocked the policy in those 22 states Monday afternoon. On Monday night, the judge expanded the order to apply nationwide. In Texas, many university leaders and researchers remained anxious about what the future holds. Research institutions in the Houston area collected a combined $263 million in indirect costs last year from the NIH, according to an agency database.

“Within a short order, there would probably have to be personnel decisions,” said Darren Woodside, vice president of research at the Texas Heart Institute. “The long term consequences are dire. You’re really talking about the U.S.’s leadership role in medical research being affected.” The new NIH policy caps reimbursements for indirect costs at 15%. Until now, large research institutions have been paid considerably higher reimbursement rates – some greater than 50% – to account for their high overhead expenses. In announcing the decision, the agency said it is “obligated to carefully steward grant awards to ensure taxpayer dollars are used in ways that benefit the American people and improve their quality of life,” adding that indirect costs are “difficult for NIH to oversee.” The policy change could have devastating impacts in and around the Texas Medical Center, officials said. Rice University – which received $24.6 million in NIH grant funding last year – would lose $9.1 million this fiscal year and at least $11 to $12 million in every future fiscal year, according to a university spokesperson. The University of Houston estimated that it could lose about $10 million annually and braced for the possibility of further cuts from other federal agencies. “We must consider the possibility that other federal agencies may adopt similar policies, further compounding the challenges faced by research institutions nationwide,” the university said.