Basic Concepts for Making Informed Financial Decisions for the Clinical Laboratory - Part 1

Continuing Education Credits

• P.A.C.E.® Contact Hours: 1 hour(s)
• Florida Board of Clinical Laboratory Science CE Credit Hours -
  Supervision/Administration, Quality Control/Quality Assurance, and Safety: 1 hour(s)

Objectives

• Describe several resource utilization and productivity indices and how to apply them in managing the laboratory.
• Define several accounting terms.
• Describe fixed and variable costs and give examples.
• Explain why labor is generally a fixed cost.
• Calculate straight line depreciation.
• Define cost/revenue centers.
• List several cost/revenue centers in the typical clinical laboratory.
• Perform a micro and macro cost analysis.
• Calculate break-even-point and operating leverage and interpret the results.
• Describe several resource utilization and productivity indices and how to apply them in managing the laboratory.

Course Outline

• Introduction to Making Informed Financial Decisions for the Clinical Laboratory
• Introduction
• Managed Care Plans
• Medicare-Medicaid (MC-MC) Health Payment
• Physician Groups
• In-house Laboratory Testing
• Monitoring Cost and Revenues
• Why Monitor Costs and Revenue?
• Cost Determination
• If the laboratory manager does not perform any part of the testing process, this person's salary is considered an indirect cost.
• Calculating Depreciation of Capital Costs
• Example Cost Revenue Centers in the Clinical Laboratory
• A new hematology instrument was purchased for the clinical laboratory. The cost was $72,000, the useful life was considered five years, and the annual...
• Performing a Cost Analysis Study in The Clinical Laboratory
• Describing Cost Analysis in the Clinical Laboratory
• Macro Cost Analysis for the Hematology Section
• Micro Cost Analysis for a New Analytical Instrument
• An annual macro cost analysis of the clinical chemistry laboratory demonstrated that the cost per patient reportable test (PRT) had increased signific...
• Calculating break-even-point and operating leverage and interpretation
• Calculating break-even-point (BEP)
• Break-even-point (BEP) Analysis Example
• Operating Leverage (OL)
• Operating Leverage (OL) Example
• The clinical laboratory reported S1,300,000 in revenue, 650,000 patient reportable tests with fixed cost of $200,000, and variable costs of $250,000. ...
• The clinical laboratory reported S1,300,000 in revenue, 650,000 patient reportable tests (PRT) with fixed cost of $200,000 and variable costs of $250,...
• Measuring Productivity
• Measuring Productivity
• If supply costs in the example in Table 5 go up by $10,000 and the labor costs go down by $15,000, the Profit margin per reportable test will go down....
• Helping Hand Medical Center Laboratory's quarterly report included supply costs of $105,000, technical labor costs of $125,000, and nontechnical labor...
• Summary
• Summary
• References
• References

Additional Information

Level of instruction: Basic