What does it mean for Industry?
The new UKCRN Industry Costing Template will:
- Provide a clear methodology to calculate consistent, predictable and transparent prices associated with industry-sponsored studies, to support both industry and the NIHR Networks
- Identify standard rates for staff time, overheads, capacity building, costs for departments supporting research and investigations, which are acceptable to all parties
- Support rapid identification of anticipated costs for pharmaceutical and biotech studies in secondary care
- Be facilitated by the NIHR Networks to speed up the negotiation process for costing and is one of several tools being introduced to speed up trial initiation and enhance the cost-effectiveness of Network sites
- Focus costing negotiations around specific local site issues
- Provide clear costing guidance for Industry and the public sector.
Over the last eighteen months, the UK Clinical Research Network has been leading on a Costing Project to develop a clear and transparent process which will provide industry and the NHS with a consistent method of costing industry contract research carried out within the NIHR Networks. This version of the UKCRN Industry Costing Template is designed for contract trials of pharmaceutical and biotechnology products conducted in secondary care. Templates suitable for use in primary care and in studies of medical devices are under development and will be released in due course.
Frequently Asked Questions
Do we have to use the UKCRN Industry Costing Template for UKCRN adopted studies? Yes, the UKCRN Industry Costing Template is an integral part of the Industry study adoption process in the NIHR Networks and will form the basis for any discussions around study fees for UKCRN adopted Industry studies.
The UKCRN Industry Costing Template looks complex, is it difficult to use?
No. The UKCRN Industry Costing Template is easy to complete and full instructions are provided within the template. Users will find they are only able to populate certain cells and all prices will be automatically calculated based on the data entered. The company contact will complete the UKCRN Industry Costing Template for any new studies that they wish the NIHR Networks to consider for adoption. This will be submitted with other key documents including the UKCRN Submission Form and study protocol;
further information on study adoption can be found here The UKCRN Coordinating Centre offers a help line facility for any companies who are struggling to use the template. This can be accessed at
costinghelp@ukcrn.org.uk or please call the UKCRN Industry team for further advice on 0113 343 0341.
How do companies calculate the time that each study specific activity takes? It is recognised that companies completing the UKCRN Industry Costing Template may not know how long a specific assessment may take. The Timecard, located within the UKCRN Industry Costing Template, provides information and guidance on timing of study activities, including potential factors which may affect the timing of standard activities in certain patient groups. There is also a drop down box in the procedures column with a list of common study activities.
Can we use the UKCRN Industry Costing Template for studies which are not run via UKCRN? Yes, the UKCRN Industry Costing Template is available to download from the UKCRN website for free. You may even find that NHS Trusts request a completed UKCRN Industry Costing Template for those studies not conducted via the Network, in order to support local costing negotiations.
Is the new UKCRN Industry Costing Template going to make UK studies more expensive than before? No. During the UKCRN Industry Costing Template Pilot, this transparent system of calculating costs was compared with studies costed using traditional methods with the ABPI / BMA rates and clearly demonstrated that the UKCRN Industry Costings Template did not inflate prices and found that local agreements were confirmed more rapidly between Trust and Company.
The overheads within this process appear to be set at a higher rate than we currently pay. Why is that? It is essential to understand that a 70% overhead is only added to the
DIRECT STAFF COST NOT to a commercial price. Previous costing methods have traditionally added 30-40% overheads onto the Trust commercial rate, whereas the UKCRN Industry Costing Template bases its calculations on the direct cost to the Trust. The overhead multiplier is only added to direct staff costs (i.e. salary and employers’ contributions). This rate has been chosen as a result of extensive benchmarking to select an appropriate multiplier which did not inflate prices. In practice this means that one hour of medical time (direct staff costs + overheads + capacity building rate of 20%) will cost between £130.78 and £163.28 depending on which NHS Trust is involved. This compares favourably with the ABPI/BMA medical hourly rate of £216 which is routinely used by industry at present.
What is capacity building for?
A capacity building rate of 20% is automatically added to direct staff costs and investigation prices. The capacity building multiplier takes the cost and creates a transparent commercial price for activities. This funding will be ring fenced by NHS Trusts to support local research activities.
How do I find the prices of investigations? A list of investigations commonly used in Industry sponsored studies has been collated (The Investigation Pricing Index) and prices have been benchmarked. Each price is already INCLUSIVE of overheads and therefore no further overheads are added. The capacity building multiplier will be added onto the price to create a transparent commercial rate for Investigations. The Investigation Pricing Index will be extended as required and ongoing benchmarking of the prices will ensure that they are acceptable to all parties. The Investigation Pricing Index is stored within the template and allows the user to automatically add investigations and prices to the UKCRN Industry Costing Template.
Will each NHS Trust be paid the same amount for a study? It would be unreasonable to expect every NHS Trust to have identical costs. The UKCRN have addressed this variation by adopting the Payment by Results Market Forces Factor (PbR MFF) system of measuring costs for NHS service delivery, developed by the Department of Health. The total per patient budget is multiplied by the PbR MFF for each participating Trust and a local price is calculated. The appropriate PbR MFF multiplier for each Trust can be found on a drop down menu within the UKCRN Industry Costing Template.
Further information about Payment by Results can be found here Will NHS Pharmacy Departments accept the pharmacy prices? It is recognised that understanding and negotiating pharmacy fees has often been difficult for both parties. The new pharmacy prices have been developed in full consultation with the NHS pharmacy sector and are calculated in an explicit time-based way. If any necessary variance occurs then a solution can be reached quickly and easily between both parties.
Once the UKCRN Industry Costing Template has been completed for a study, is that the final price or will there still be some negotiation?
The UKCRN cannot set a fixed price for NHS Trusts. However the UKCRN Industry Costing Template has been developed to support rapid local costing negotiation and agreement with sites. The completed template will be checked by the Network to ensure it has been completed correctly and will be presented to prospective sites by the Local Research Networks, who will support local negotiations with Trusts. There may be specific local issues which could affect the proposed price such as
- Insufficient staff time allocated for a particular activity
- A study specific activity missing from the template
- A local requirement to conduct aspects of the study out of hours (e.g. limited availability of equipment)
The UKCRN Costing Process should speed up any necessary negotiations, as the discussion will be based upon specific time-based issues rather than approximate financial estimates.
What happens if, for example, a protocol amendment requiring additional procedures is introduced and there is a need to amend the costs during the study? The UKCRN Industry Costing Template would be adjusted accordingly and agreement between the Trust sites and the company would be facilitated by the Network.
How will price increases due to inflation or salary increases be dealt with? Studies which will run for two years or less will have fixed agreed prices. Long term studies will have a price review after two years.
Is there any help or advice available to support companies using the UKCRN Costing Process? An email address has been set up to answer any questions or difficulties you may be having
costinghelp@ukcrn.org.uk or please call the UKCRN Industry team for further advice 0113 343 0341.
Is there any way I can feedback on what is or isn’t working within the UKCRN Industry Costing Template? All elements of the UKCRN Industry Costing Template will be closely monitored over the first 12 months and amendments will be made when required. If you have any concerns, suggestions or points you would like us to investigate then please email us at
costingfeedback@ukcrn.org.uk 
Home
About us
Contact us
Library
Login
Print friendly page