Abstract
Prospective reimbursement places hospitals at increased financial risk. Relatively fixed payment rates provide a strong incentive for hospitals to reduce the cost of each inpatient stay. Cost control strategies of hospitals are numerous and varied. Cost of clinical research not paid by project sponsors is currently undergoing scrutiny. Preliminary data suggests that hospitals and third party payers have subsidized clinical research in the past by supporting research related patient case costs including extended patient stays, payment of ancillary diagnostic and therapeutic services and supporting acquisition and operation of expensive technical equipment. Hospitals cannot thrive if they lose money in the name of research. New patterns of fair and equitable cost-sharing between hospitals and clinical research sponsors must occur if hospital-based clinical research and medical progress is to be maximized.