Cancer Prevention & Research Institute of Texas Cancer Prevention & Research Institute of Texas

2023
Annual Report

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Cost of Cancer

Cancer takes a toll on all Texans, physically, emotionally, and economically. While the established purpose of CPRIT is to attack the physical and emotional toll of this disease by supporting expanded research, improved treatments and cures, our programs also reduce the economic impact. This section looks at the economic cost of cancer to all Texans and how CPRIT’s work provides a return on investment.

Costs to Texas Economy

Texas pays for cancer through reduced annual spending, output losses, and lost jobs attributable to cancer treatment, morbidity and mortality, and the associated spillover effects. The Perryman Group updated its economic assessment of the annual cost of cancer in Texas and the benefits of CPRIT and its program for fiscal year 2023.

Read the Perryman Group Report

$56.3 billion

Direct medical costs and morbidity/mortality losses

$147.9 billion

Total economic losses, including multiplier effects

1.25 million

Lost jobs, including multiplier effects

FY 2022* Cancer-Related Expenditures in Texas

State Funds Expended by Initiative/Organization

Children’s Health Insurance Program
$4.1 million
Texas Medicaid
$488.7 million
Teacher Retirement System of Texas
$791.9 million
Employees Retirement System of Texas
$438 million
Total
$1.72 billion

Non-State Funds Expended by Initiative/Organization

Private Insurance Companies
$8.6 billion
Other Third-Party Payers
$4 billion
Medicare
$5.9 billion
Patient Out-of-Pocket Costs
$2.9 billion
Total
$21.4 billion
Total Cancer-Related Expenditures
Paid by State and Non-State Entities:
$23.12 billion

* Most recent information available

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CPRIT's Economic Impact

Basic medical research is part of society’s essential infrastructure and is valuable to society in large part due to what it facilitates downstream. By enhancing Texas’ cancer research prowess, expanding the life science infrastructure and prevention ecosystem throughout the state, and accelerating innovative cancer discoveries and prevention strategies, CPRIT enhances the health of Texans and the economy at a pace that far exceeds the state’s direct investment.

EVERY DOLLAR INVESTED THROUGH CPRIT RETURNS:*

$27.82

Cost Savings in Treatment and Early Detection
$204.64

Economic Activity (Total Expenditures)
$99.56

Output (Real Gross Product)
$59.94

Personal Income
$28.08

Retail Sales
$4.89

State Tax Receipts
$2.08

Local Government Tax Receipts
*Including initial outlays and downstream effects
Source: The Perryman Group - An Economic Assessment of the Cost of Cancer in Texas and the Benefits of the Cancer Prevention and Research Institute of Texas (CPRIT) and its Programs: 2023 Update
In FY 2023 CPRIT’s operations and grants resulted in:
  • $630.8 million in annual gross product, including initial outlays and multiplier effects
  • 7,377 jobs created or maintained
CPRIT-funded prevention activities in FY 2023 benefited Texans:
  • $381.7 million in direct and secondary output
  • 3,442 jobs
  • $1 spent on screening and prevention saves $2.05 in direct health spending
The overall total gross annual impact of CPRIT’s work includes:
  • $48.90 billion in spending
  • $23.78 billion in output
  • $1.3 billion in state tax receipts
  • $560.1 million in local government tax receipts
  • 201,911 jobs

Leveraging Other Sources of Cancer Research and Product Development Funding

In addition to serving as a stable source of cancer research and product development funding, the money CPRIT invests in cancer research and development positions its grantees to be more competitive for external funding. Sources of external funding include grants from the National Institutes of Health, Department of Defense, National Science Foundation, the American Cancer Society, and other cancer granting organizations that support scientists at universities and non-profit research organizations. Other sources of financial support for early-stage biotech companies include angel investors, family foundations, venture capital, and federal grants (e.g., the NCI Small Business Innovative Research and Small Business Technology Transfer program).

$2.91 billion

Non-CPRIT grants received by grantee institutions to continue CPRIT projects

$6.57 billion

Follow-on capital raised by CPRIT-funded companies

10 to 1

Ratio of follow-on capital raised compared to CPRIT’s company investments