The Indiana University School of Medicine (IUSM) utilizes a continuous improvement allocation model that incentivizes outcomes linked to the IU 2030 strategic plan to distribute the tuition, indirect cost recovery funds, and state appropriations amongst the school’s departments, centers and institutes, and other operating units.
The IU School of Medicine began implementing a “redesign” of the model and associated budget in early 2021. Through the Space and Long-Term Financial Planning Task Force, which included broad representation from executive leadership, faculty, Chairs and Center/Institute Directors, and key administrative personnel from multiple units, a detailed review of the operational costs, space, campus assessments, long-term capital investments, growth needs and the cash position of the school was completed. Key findings were evaluated and phased recommendations were adopted that addressed funding limitations, space needs and longer-term actions needed to meet operational and strategic needs of the school. Currently, any changes to the budget methodology or assessment redesign are reviewed by the School Executive Committee (SEC), a cross-campus group comprised of departmental and campus leadership.
The dynamic and incentive-based approach to the allocation model at the IU School of Medicine ensures that resources are being allocated in a fiscally responsible manner to create the best possible outcomes linked to the strategic plan.
The allocation incentives include:
- Additional revenue allocations based upon instruction type and delivery
- Added funding to departments who fulfill educational and service to school roles
- Increased Indirect Cost Recovery (ICR) allocations for additional research grants
- Reduction of space specific costs for maximizing space utilization
- Institute and center support for high impact research
- Departmental operations support for administrative activities
The model incorporates ongoing performance monitoring and expectations including:
- External Reviews
- Department Annual Reviews (DARs)
- Monthly Financial Analysis