## The CRO Bureaucracy Tax
When a biotech startup raises $20M to cure a disease, they assume the money will be spent on science and patients. Instead, they must hire a Contract Research Organization (CRO) to manage the hospital sites. The CRO will charge a massive 35% overhead markup on every blood draw, x-ray, and patient visit.
### FAQ
**Q: Why do clinical trials constantly go bankrupt?**
A: Patient Enrollment Delays. If a CRO promises to enroll 250 patients in 12 months, but it actually takes 20 months, that is an 8-month delay. During those 8 "dead" months, the biotech startup still has to pay its executive salaries, lab leases, and patents. The cost of "waiting for patients" often bankrupts the company before the drug is ever tested.