This case study, published on the ADVANCE for Administrators of the Laboratory website, is a collaboration of efforts by Paul Monge, ExactCost's VP Clinical Specialists, and Alberto Rey, Director of Laboratory Services, Mercy Hospital.

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ADVANCE for Administrators of the Laboratory is a cutting-edge monthly magazine with reports on the latest technological advancements, new products, regulatory trends, and informative articles to help lab managers solve and strategize for the future.

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CASE STUDY:  EVALUATING LABORATORY BUSINESS OPPORTUNITIES

Activity-based methods serve as a dynamic process that allows cost reduction and increased productivity.

The Challenge:
"Our organization was recently presented with an opportunity to in-source a variety of laboratory tests from another local area hospital that was experiencing financial hardships. Due to the situation, we needed a decision in a very short amount of time."

The Solution:
The ExactCost solution was used to (a) determine current utilization and equipment capacity (b) assess if capacity exists to accept an increase in volume (c) analyze the labor, materials, supplies, administrative and overhead costs by test and by analyzer and (d) analyze the affect on labor and non-labor cost and on profitability, when utilization increases above current levels in increments of 10, 20, 30, 40 and 50 percent.

The Results:
"With our analysis completed, we recommended that all of the new business be accepted because the impact on our operation would be very positive. Now we have the tools that give us the most realistic and accurate view of our operation, and allow us to make informed decisions and continuously find ways to improve quality and reduce cost."


Click here to view the complete Case Study as published on the ADVANCE News Magazines website.