KU News Release

Pharmacy schools net 20-fold return on state investment, study says

LAWRENCE — Every dollar invested in a school of pharmacy can generate a return of more than $20, according to a recent study. University of Kansas officials say that means the corner pharmacies located in communities throughout Kansas not only provide life-saving medications, they represent sound state investment. These resources also lead to increased tax collections by government.

The study, conducted by Dick Gourley and Shelley White-Means of the University of Tennessee and Jeff Wallace of the University of Memphis, was published in the February issue of the American Journal of Pharmaceutical Education.

The researchers found that every dollar the state of Tennessee invested in the University of Tennessee’s College of Pharmacy yielded a net return of $27.90. They used the United States Bureau of Economic Analyses RIMS II input/output analysis to measure the College of Pharmacy’s economic contribution to the state in the 2004-05 fiscal year.

Like KU, the University of Tennessee hopes to expand its pharmacy school and add a satellite campus. KU is requesting funding from the state to increase enrollment at the School of Pharmacy on the Lawrence campus from 105 students (its current limit) to as many as 150 students. The university also has proposed a satellite campus at the School of Medicine-Wichita that could enroll as many as 40 students. KU, which has the only pharmacy school in Kansas, is asking the state to issue about $50 million in bonds per year to fund the expansion. All operating expenses for the proposal would be paid by the university.

Ken Audus, dean of the School of Pharmacy, said the need for expansion is urgent. Seven counties in Kansas lack pharmacies, and another 29 counties each have only one. The lion’s share of KU’s pharmacy graduates remain in Kansas to work, many opening their own practices.

“The study by Gourley and colleagues documents the economic contributions provided by a school of pharmacy that has a comprehensive mission of biomedical research, teaching, service and providing pharmacists for the state. KU alone has that mission in Kansas,” Audus said.

The study shows that the majority of the University of Tennessee’s pharmacy-school funding comes from sources other than tuition, fees and state appropriations. Audus said the same is true at KU, pointing out that KU ranks fourth nationally in pharmacy research funded by the National Institutes of Health, with just over $11 million. The American Association of Colleges of Pharmacy reported in February that KU is No. 1 in the nation in percentage of faculty with doctorates who receive such research funding. By comparison, the University of Tennessee ranks No. 35 in NIH funding, with $1.65 million.

The results of pharmaceutical research cannot be measured in dollars exclusively. KU School of Pharmacy faculty are performing state-of-the-art research to develop new medications and make existing medications more effective.

Blake Peterson, who joined KU’s medicinal chemistry faculty this semester, was named one of two Eminent Scholars by the Kansas Bioscience Authority in January. The designation comes with a $5 million grant, which will be matched by KU. Peterson’s research has led to groundbreaking discoveries in drug delivery, particularly across membrane barriers. His work will be key in helping KU to achieve National Cancer Institute designation as a Comprehensive Cancer Center. A 2004 state statute created the Kansas Bioscience Authority and stipulated that Eminent Scholars demonstrate professional distinction, a high level of research activity and the potential for commercialization of that research.

The state’s investment goes well beyond the campus, the Tennessee study shows. Increased funding allows for more faculty and students, who in turn bolster the local and state economies. Audus said if KU were to expand its School of Pharmacy it would have a ripple effect, as more students would initially be on both campuses and eventually work in communities across Kansas.

In addition, increased state investment in KU’s School of Pharmacy would positively boost the economy by producing more pharmacists for Kansas. The National Association of Chain Drug Stores Association reported that in 2006 there were 594 pharmacies in Kansas that employed nearly 32,000 people and paid an estimated $258,825,000 in state taxes. By helping KU increase its number of pharmacy graduates, approval of the proposed pharmacy school expansion would help push those numbers forward.

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The University of Kansas is a major comprehensive research and teaching university. University Relations is the central public relations office for KU's Lawrence campus.