Education costs in two public teaching hospitals

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Abstract
The authors examined the impact of costs of education on the overall expenses of two major teaching hospitals during a period of rapid growth and change in the Minneapolis and St . Paul , Minnesota , health care environment . By using a retrospective faculty-time study and the two hospitals ' estimated costs for education , education costs of each hospital were compared – within and across facilities – with annual hospital operating expenses , with inflation , and by educational program . Unit costs were estimated for undergraduate and graduate medical students . Over the study period , allocated education costs averaged 13 – 14 % of the hospitals ' operating budgets . The combined mean allocated cost per medical student and resident was approximately + 73 , 000 in 1983 – 84 . During this period , allocated education costs were in line with medical inflationary trends and did not drive hospital expense increases . These findings suggest that policymakers wishing to restrain the rise in health care costs should look beyond cutting the costs of education programs and find other solutions .

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