Budget 2003

Canada’s research hospitals are holding off celebrations until they hear the details surrounding the $500-million investment targeting their institutions through the Canada Foundation for Innovation (CFI). But they can already lay claim to a major victory in convincing Ottawa that a severe shortage of medical research space needs to be addressed. The breakthrough is being attributed to a low-key but effective lobbying campaign by several organizations including the Association of Canadian Academic Health Care Organizations (ACAHO) representing research hospital CEOs.

The Budget did little to clarify the original announcement of CFI funding dedicated to research hospitals (R$, February 18/03). CFI officials are now engaged in negotiations with the federal government to finalize a contribution agreement that will likely determine how and when the money will be opened to competition. Top CFI executives also met recently with ACAHO president Dr Glenn Brimacombe to outline the process and possible options for disbursing the new funds.

“We’ve been waiting to try and understand the process and we still don’t know. But we do have some facts,” says Dr Bernie Bressler, VP research for Vancouver Coastal Health, the provincial body responsible for the Vancouver General Hospital (VGH). “The CFI has received $500 million and it won’t be used for the current CFI competition. There’s no indication yet as to how it will be spent.”

VGH has used every available square metre of wet and dry lab space over the past three and half years and is desperate for more to accommodate the rapid growth of its research operations. A public-private collaboration is currently being pursued with Discovery Parks Inc (DPI) but a business model remains elusive due to constraints placed upon the use of public research funds.

The space shortage hitting research hospitals across Canada isn’t just due to increased health research. DPI executive director and president Mark Betteridge says governments at all levels have cut back on new building construction since the last boom in the 1960s, and while a similar predicament can be found in the US, private foundations and many state governments are taking action.

“The real crunch hit about 24 months ago,” says Betteridge. “I’d love to see how far CFI will go with this new funding. It pays for 40% but where does the other 60% and the operating costs come from. The system doesn’t provide money to pay the rent, only part of the capital costs.”

It’s too early to determine how the new funding will be awarded, but CFI president Dr David Strangway says he is optimistic that the pressing needs of research hospitals will be addressed.

“The new funds open up opportunities for larger projects. We will be looking at changes that need to be made in what is allowable for building structures, such as office space,” says Strangway. “I don’t think there will be a lot of pressure to subvert the way we do things.”

FUNDING CAP IMPOSED

Until a new competition is announced, research hospitals will have to cope with a new quota system imposed on the current competition. Due to overwhelming demand (902 letters of intent worth $2.6 billion), the number of awards institutions can receive has been capped. The funding envelope each institution is eligible for is based on their tri-council funding record.

“UBC has 35 projects valued at $190 million in CFI dollars but the envelope is only $80 million,” says Bressler. “We’ve got to make some tough choices.”

R$