NPC Fact Sheet

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VA-Affiliated Nonprofit Research and Education Corporations

In 1988, Congress passed 38 USC 7361, legislation that allowed VA medical centers to establish state chartered nonprofit research corporations (NPCs), forming a unique partnership that dramatically broadened VA's ability to accept private and non-VA public funds to support VA's research program and work-related training for VA staff.

Facts (based on annual reports submitted in June 2001)

94 operational NPCs; 2 established to administer only education

Annual Revenues: $180 million

Annual Expenditures: $148 million

Administered 4,690 research projects last year

Average administrative overhead cost to manage an NPC: 14%

Expenditures must document relatedness to VA research or approved education activities

Oversight for the NPCs is provided by:

Congress

Internal Revenue Service

Department of Labor

State and local government agencies

VA Inspector General

VA Comptroller General

VA Office of General Counsel

Federal agencies and regulations governing research and education

VA handbooks specific to the nonprofits as well as research and education, human resource management, safety, conduct and ethics, etc.

Board of directors including the medical center director, chief of staff and associate chiefs of staff for research and education.

Certified public accountant (CPA) and guidance promulgated by the American Institute of Certified Public Accountants

CPA Auditor and regulations of the Federal Accounting Standards Board

Office of Management and Budget (OMB) and regulations contained in various OMB Circulars

Support for VA Research and Training

Generally, NPC expenditures are for research equipment and supplies; space renovations; travel to scientific conferences; and salaries for research personnel including technicians, nurses, research coordinators, animal care takers, data clerks and investigators. Intangible benefits:

Assist VA in recruiting clinician investigators who in turn provide high quality care for veterans. NPCs support recruitment travel costs and often pay to upgrade a laboratory to suit a new investigator’s particular needs.
Efficient services provided by the corporations increase principal investigator satisfaction and productivity and help VA retention rates. Prompt personnel hiring, quick turnaround on travel reimbursements, and efficient procurement are just a few of the benefits.
Veterans have access to the latest drugs and the extra care that goes along with participation in clinical research, saving VA millions of dollars in pharmaceutical costs and improving patient outcomes.
Help make up for inadequate VA travel funding by supporting the costs of attending scientific meetings so investigators can stay current or to disseminate the results of VA research.

In addition to the general benefits NPCs cited above, the following are examples of the specific ways three medium-sized corporations support VA research:

Salt Lake City - Western Institute for Biomedical Research (WIBR):

Since 1994, WIBR has awarded young VA investigators $300,000 in seed grants. So far, half of these awardees have gone on to obtain VA, NIH and other peer reviewed funding in excess of $1.8 million.

Private sector contributions of $325,000 have allowed WIBR to purchase a scanning electron microscope and donate it for VA investigators’ use.

For two years, WIBR has hired and donated to VA a full-time Research Compliance Officer and a part-time support clerk to run a Risk Management Office dedicated to protection of human and animal subjects, safety/biosafety and ensuring scientific integrity.

Long Beach - Southern California Institute for Research and Education (SCIRE)

Each year, SCIRE provides three $5,000 bridge funding grants that allow established VA investigators with lapsed funding to maintain their laboratories and/or develop data and proposals for submission for VA merit review awards as well as NIH and other grants.

Student stipends enable local undergraduate university students to work in the VA laboratories to assist researchers, but also to develop an interest in research under the direct supervision of a funded VA principal investigator.

SCIRE donates to VA the services of an Information Technology Support computer specialist to assist in the selection and installation of hardware and software for research personnel, repair computers and provide a variety of research technology support services.

SCIRE publishes a monthly clinical coordinator newsletter to disseminate information to SCIRE, VA and university funded clinical coordinators based at the VA. In addition, it holds a monthly training session for all the coordinators to introduce new regulations, practice guidelines, etc.

Atlanta - Atlanta Research and Education Foundation (AREF)

AREF has funded numerous small, but essential renovation projects that include design and remodeling of laboratories, and patching and painting. Over the last three years, the costs have totaled over $70,000.

At a cost of $355,000, AREF covered the expense of converting and expanding unused medical center space in order to provide the research program with much needed new laboratory space.

AREF partnered with the VA to purchase a $120,000 high tech microscope by allocating $9,000 to renovate a room to house it.

AREF has a young investigator award program that funds up to three $25,000 grants per year so that young investigators who hold VA clinical appointments may collect preliminary data and compete for grants at the national level.

AREF has partnered with the medical center to develop a clinical studies center. While VA pays a clinician director, AREF annually invests over $200,000 to staff the center and pay for training in human studies compliance.

The corporations cannot replace a robust federal appropriation for the VA research program and medical center support. However, they are very successful in leveraging VA-appropriated dollars in ways that benefit the research program, VA facilities, VA staff and VA patients.

For additional information, please contact NAVREF. 301-229-1048 Email: navref@navref.org

Selected Additional Examples of Research and Education Corporation
Contributions to VA Facilities

Palo Alto Institute for Research and Education (PAIRE):

Provides seed grants ranging from $15,000 to $100,000 to new VA appointees, junior faculty and persons appointed to significant VA research positions such as the GRECC director. Grants enable investigators to start new research programs, hire laboratory technicians to work on projects that result in grant submissions or to acquire supplies and equipment.

Donated over $100,000 for the development of a web site that permits electronic processing of research projects.

Cost shares with VA the salary and fringe benefits for a Research Compliance Officer, IRB Coordinator, Database Manager and R&D Project Coordinator.

Middle Tennessee Research Institute:

Donated software that enhances the VA research office’s ability to comply with new and existing human subject oversight requirements.

Donates to VA the services of a Research Pharmacist.

Supported travel and training costs for a new Research Compliance Officer.

Missouri Foundation for Medical Research:

Contributed $45,000 to partner with the university to purchase a $192,000 MicroCat scanner and a $229,000 Gammacell Irradiator and to install them in the VA animal facility.

Durham Research Institute:

Spent $24,000 on research laboratory improvements during the last two years.

Since 1999, has provided $232,000 in seed grant funding.

Indiana Institute for Medical Research:

Provided $52,000 to purchase a confocal microscope and set aside $87,000 to purchase equipment for a newly renovated wet laboratory which will include a new biosafety level 3 lab.

Collaborative Medical Research Corporation (White River Junction):

Committed $34,000 to partner with the VA research program to acquire three state-of-the-art pieces of laboratory equipment.

Sponsors bi-weekly research seminars, bringing nationally prominent speakers to the VA facility to share results and build collaborations in order to help grow the White River Junction research program.

Will soon begin funding a nurse research coordinator to facilitate studies in cardiology, gastroenterology and pulmonary disease as well as a Research Compliance Officer.

New England Medical Research Institute:

Assisted in the recruitment of a highly sought after research scientist by donating $5,000 to pack and move over $100,000 worth of research equipment that is now available to the new researcher as well as others in the facility.

Biomedical Research Foundation (Little Rock):

To date, provided VA investigators with nearly $1 million in funding for pilot studies, equipment purchases and bridge grants.

During the last two years, purchased three sets of animal cages at a cost of $75,000 and donated them to VA.

Pays the salary for a full-time Research Compliance Officer and a half-time Safety Officer for a total cost of $81,000.

Veterans Education and Research Association of Michigan (VERAM):

So far during 2002, VERAM has provided three research grants of $25,000 each and contributed .25 FTEE for a human studies coordinator.

Cleveland VA Medical Research and Education Foundation:

Awarded $46,000 worth of bridge funding to VA investigators and provided salary support for IRB clerical staff.

Buffalo Institute for Medical Research (BIMR):

Recently collaborated with the medical center to open a clinical research center (CRC) in a former in-patient ward. The CRC is used by investigators conducting both in-patient and out-patient studies. BIMR provided $7,000 to convert the ward and provides on-going salary support for staff.
Supports two part-time animal care workers at a cost of $3,000 per year.
Annually, spends about $17,000 to cover the cost of service contracts on VA research equipment.

Research Corporation of Long Island:

Donated $40,000 to the medical center for a Research Pharmacy Technician.

Salem Research Institute:

Donates a .5 FTEE secretary to the research office.
Supports the cost of training for personnel responsible for human subject oversight.
Coordinates meetings between Salem investigators and their collaborators from around the country.
Subscribes to a variety of professional journals and purchases reference materials on research issues.

Midwest Biomedical Research Foundation:

Provided five seed grants of $10,000 each to young investigators that has allowed them to go on to achieve NIH, VA merit and other funding.
Supported 40% of the salaries for a physician and a scientist for the facility’s Neurobiology Laboratory.
Hires clerical workers to help principal investigators complete all the paperwork required for research study approvals.

Minneapolis Veterans Research Institute (MVRI):

Regularly purchases core equipment and donates it to VA. So far, this has included a cell sorter, freezer and industrial copier. MVRI also provides $10,000 a year to cover equipment repairs and miscellaneous emergency expenses.

Bronx Veterans’ Medical Research Foundation (BVMRF):

Donates the cost of salaries for the IRB chairman and the Research Compliance Officer. BVMRF also makes up the chronic deficit in the cost of running the animal facility.

Training and Education Examples

Pursuant to a $30,000 grant, the Biomedical Research Institute of New Mexico sponsored a conference on infectious diseases that was attended by 78 VA, university and community physicians.
The East Bay Institute for Research and Education administered a state-of-the-art training session in endoscopic retrograde cholangiography and papillotomy. Procedures were performed live at the VA and transmitted to large screens at a nearby hotel conference room where 215 registrants watched and listened. Many VA nurses, physicians and trainees attended free while a small registration fee was charged to community and university attendees.
The Boston VA Research Institute (BVARI) assisted VA in managing the 2001 Information Technology Conference that over 3,000 VA employees attended. BVARI also supports research fellowship training grants for VA physicians.

last updated: 01/04/10