The Industry Costing Template

The Industry Costing Template has been developed on behalf of the National Institute for Health Research (NIHR) and addresses a specific recommendation made in the Cooksey Report, which highlighted the need for a transparent and consistent national costing system for commercial research.

The costing templates under the NIHR CRN Costing Programme have been implemented to speed up the initiation of industry contract trials by reducing the time required for site-by-site negotiations. It is based on the principles articulated in the NHS Finance Manual and is intended to provide transparency, greater consistency and predictability on costing for companies.

NIHR CRN Industry costing templates will be used for all relevant studies intended for adoption by the NIHR Clinical Research Networks (England). Although developed primarily to support these studies, the methodology is freely available to companies interested in running trials outside the Networks. NIHR CRN is working with the devolved nations to facilitate development of comparable systems for implementation across the UK.

**NEW TEMPLATES** were launched on 22 April 2010 – for more information please read the details on this page.

** Please note: The Industry Costing Template may not function correctly on computers using MicroSoft Excel 2000 or earlier versions. Please use a later version of MS Excel to enable the correct functionality and calculations within the Template. **

Costing Programme update:

In April 2010, two new templates were launched alongside the Industry Costing Template. The Medical Technology Costing Template and the Primary Care Costing Template were launched on 22 April 2010, following a year of successful consultation and collaboration between Industry, the NHS and the NIHR Clinical Research Networks to deliver a costing framework for these important sectors of the health research system.

As of April 2010, the NIHR CRN Costing Programme has an updated suite of costing templates reflecting changes to NHS staff pay, Payment by Results Market Forces Factors and important study budget considerations. Changes aim to ensure the NHS is fully reimbursed for commercial research and that the Life Science Industry receives a consistent and reliable method for budgeting and negotiating UK clinical research. Details of each template, updates included in the new versions and information relating to training and commercial income funding flow from NIHR CRN Industry Portfolio studies is all captured on this webpage below.

Costing Programme general information for 2010/11:

• Each template now includes a uniform layout and structure. Each document features a cover and study information tab to make identify and tracking individual study templates much easier.
• Each template now has greatly expanded functionality, including the ability to delete rows, columns, add text and format cells as needed by sponsors and Trusts.
• The Industry Costing Template is largely cost neutral from 2009/10 version – a modest increase of 2.25 per cent to NHS Agenda for Change paid staff is offset by an overall decrease in PbR MFFs for most Trusts.

What’s changed with version 1.4?

Industry Costing Template (version 1.4):
a) All staff rates updated for 2010-11
     i. A 2.25% uplift for all Agenda for Change paid staff
     ii. Medical staff remains unchanged
b) Bands and salary scales remain the same
     i. Medical Staff, top of Consultant Band
     ii. Nurse Staff, top of band 7 Agenda for Change
     iii. Pharmacy Staff, top of band 7 Agenda for Change
     iv. Study/Data administration, top of band 3 Agenda for Change
c) New Pharmacy Section developed with a NIHR CRN Pharmacy Advisory Group
     i. Simpler, easier to use layout and clear decision making for pharmacy activities
d) New 2010-11, Dept. of Health Payment by Results Market Forces Factors included
     i. The vast majority of PbR MFFs have decreased this year relative to 2009/10
     ii. Inclusion of a multiplier factor for each of the devolved nations so the template can be used UK wide to negotiate the costs of NIHR CRN studies
e) New format – cleaner layout and easier to organise study information
     i. Expanded procedure list
1. recommended times now used in lieu of ranges from the timecard
     ii. Expanded investigation pricing index (more investigations, but no recommended costs)
1. the number of investigations featured in the template has expanded, however as these costs were not part of the original standardisation exercise by the NIHR CRN, costs for these investigations have not been proposed
f) This current tool in its new format and structure will form the basis of online developments with NIHR IS which will be ongoing through 2010

What’s new in the Medical Technology and Primary Care Costing Templates?

Medical Technology Costing Template (version 1.0):
a) Agreed and finalised with the Medical Technology Process Testing Working Group on 9 December 2009
b) Will be piloted within the Networks for a twelve month period starting 1 April 2010
c) Will be mandatory for all NIHR CRN adopted medical technology studies
d) Methodology used is the same as for the Industry Costing Template
     i. Staff rates and bands the same 
     ii. Contains the same level of Overheads (70%) and Capacity Building elements (20%)
     iii. £700 recommended set-up fee proposed in this template as well
e) Includes a medical device/supply management section and a worksheet to help companies and R&D offices understand which sections need to be completed/reviewed
f) Evaluating the proposed costs in light of each Trusts’ standard-of-care will be essential to the success of the tool
    iv. Local Research Networks will be essential communicating this information to Trusts and companies

Primary Care Costing Template (version 1.0)
a) Near final version currently being piloted with five companies
     v. Initial feedback positive
b) Will be piloted within the Networks for a twelve month period starting 1 April 2010
c) Will be mandatory for all NIHR CRN adopted primary care based studies
d) GP Staff rates derived from the Primary Care Non-Commercial Template
e) All non-medical staff set to Agenda for Change pay scheme
f) Overheads set at 25% and Capacity Building Element at 20%
    vi. Benchmarking earlier this year illustrated that these rates fit current primary care costing environment
g) Recommended set-up fee of £350.00 for primary care governance, costing and contracts negotiations will be proposed with the launch of this template
     vii. Average based on the set-up fees currently being applied to primary care
     h. Referral mechanism included, but requires wide degree of freedom to be truly effective

What to about Costing Templates you’re currently using or negotiations you have already started?
Industry Costing Template Version 1.4 replaces all older versions of the Industry Costing Template and a pop up in the file clearly highlights the version in use. Subsequent to the launch of Version 1.4, the acceptance of any costs calculated using older versions of the Industry Costing Template will be at the discretion of the Trust. Older versions of the Industry Costing Template will not be valid for use in new studies used for NIHR CRN study adoption or negotiations of adopted studies.

Following the release of Version 1.4, the NIHR CRN Coordinating Centre Industry Team recommends that all ongoing cost negotiations using older versions (i.e., initiated prior to the release of 1.4) should continue without updating to Version 1.4. All new studies put forward for adoption by NIHR CRN should use Version 1.4 of the Industry Costing Template. If you’ve already developed a budget in version 1.3, the NIHR CRN Industry Team can help transfer this information into the latest version.

Online Costing Template Training Resource
a) In final stage of development
     viii. current training programme will be for the Industry Costing Template, however follow-up work will look to include the considerations for Medical Technology and Primary Care templates shortly after launch
b) Will provide an overview of all the costing template elements and highlight how these elements are used to make up the NIHR CRN Costing Framework
c) Will illustrate through a worked example how to cost and how to review a study
d) Will be freely available on the NIHR CRN Workforce Development Learning Management System towards the end of April

Income Distribution from NIHR CRN Commercial Portfolio Studies
a) This document highlights the importance of recognising each departments and organisations contribution to NIHR CRN commercial research,
b) It puts forward an income distribution model and uses case studies to illustrate how funding flows to key research stakeholders and
c) This document explains the appropriate uses for Overheads and Capacity Building elements within the Industry Costing Template, aiming to clarify several misconceptions.
d) Importantly, this document shares best practices gleaned from model NHS and Network collaborations

Last updated: 22 July 2010