The question for today is whether academic medicine is at risk for extinction. To answer that question, let's take a deeper dive and look at how the average medical school funds itself. The data from the AAMC shows that only about 4% of the medical school budget is covered by tuition -- this may be surprising to many of you who are still paying off your student loans. The majority of the funding for a medical school is from clinical revenue, be it hospital contracts or faculty practice collections. The real take-home message is that it's the clinical practice that cross-subsidizes the research and education mission in academic medicine. So, when the clinical mission catches a cold, the rest of the academic medical center gets pneumonia. The big problem is we're now in perennial flu season. And why is that? Well, let's look at how much we spend as a nation on healthcare. By 2018 or 2019, about 20 cents of every dollar in the U.S. economy is going to be...
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