Nebraska’s decision to invest tobacco settlement agreement funds into biomedical research in 2001 has resulted in a $5.5 billion expansion of the state’s economy and the creation of more than 14,000 sustainable jobs, with an average pay of $76,000, since 2001.
Chris Kratochvil, M.D., associate vice chancellor for clinical research at UNMC, testified before the Appropriations and Health and Human Services Committees of the Nebraska Legislature on Sept. 20 in Lincoln to urge continued legislative support of biomedical research through the Nebraska Health Care Cash Fund, which was created in part with settlement dollars.
Dr. Kratochvil, also appeared on behalf of Creighton University, Boys Town National Research Hospital and the University of Nebraska-Lincoln.
“These funds are used to save and improve the lives of Nebraska citizens through biomedical research,” Dr. Kratochvil told legislators. “The scientists that we have invested in represent a net ‘brain gain’ for our state, making discoveries that lead to better medical therapies and better health for the people of Nebraska. Additionally, medical research has both immediate and long-term economic impact for our state, through new high quality jobs, new technologies and start-up companies.”
The fund also has fueled additional extramural research funding:
- At UNMC, extramural research funding has grown to $138 million, a 172% increase since 2001, supporting research into strategies to improve rural safety and health and treatments that may soon eradicate viruses such HIV.
- At Creighton, the funds fueled a 30% increase in National Institutes of Health funding since 2005, supporting initiatives like Dr. Henry Lynch’s Hereditary Cancer Program, which identified approximately 900 Nebraska families as carriers of Lynch syndrome genes.
- At UNL, the funds facilitated a 35% growth in research funding over 10 years to $165 million and supported a new Rural Drug Addiction Research Center — the only major research center focused on rural drug use in the Midwest.
- Boys Town National Research Hospital saw a 75% increase in funding over 10 years, with one center alone, focused on improving communication and academic outcomes for children with hearing loss and communication disorders, bringing in more than $12 million.
The nationally recognized firm of Tripp-Umbach provided a study that determined that from FY2001-2019, tobacco settlement fund investments into the Nebraska Health Care Cash Fund have:
- returned $23.28 to the state’s economy for every dollar invested.
- Generated $8.88 from sources outside of Nebraska, principally federal research support, for each invested dollar; and
- Through job creation, provided a cumulative state and local tax revenue of $274 million.
Dr. Kratochvil called the Nebraska Unicameral “visionary” for investing in biomedical research.
“The impact of this strategy has strengthened the state’s ability to respond to the health needs of its citizens; fostering robust job creation and economic growth; and advancing Nebraska’s position in biomedicine,” he said.
Congratulations, Chris!
This funding is critical to UNMC and the other three partners of the funding, and they picked the right person to speak to the two committees of the Legislature. Thank you Chris!!