New Indirect Cost Guidelines Put Quality Care at Risk

WASHINGTON, D.C. – In response to the Administration's new indirect cost guidelines, Children's Hospital Association President and CEO Matthew Cook released the following statement:

“The Administration’s new indirect cost guidelines will limit access to effective health care treatments and diagnostics for patients, and if implemented as currently drafted, will undermine our medical research capacity and put the nation’s health and global competitiveness at risk.

Children’s hospitals and pediatric research institutions drive innovation in pediatric care, by developing life-saving cures for childhood diseases and exploring a wide range of issues in child development. Pediatric researchers prioritize the safety and well-being of children and adolescents in their care, giving unique consideration to their recruitment processes and patient accommodations that often necessitate additional investment. Reducing the indirect cost rate will threaten the ability of children’s hospitals to provide future groundbreaking cures for children.

Facilities and administration costs are carefully tailored to each institution and reflect the essential expenses associated with conducting ethical, effective and safe research. These costs cover a wide array of expenses from equipment and supplies to facilities, and the core staffing needs critical to maintaining an advanced research infrastructure.

We urge the Administration to rescind this guidance. Further, we ask Congress to prevent unilateral changes in the established processes for determining indirect cost rates, in accordance with the prohibition in current law and longstanding Congressional intent. We are committed to working with lawmakers and the Administration to strengthen the United States’ position as a leader in biomedical research and health care innovation.”