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

• Define fixed and variable costs and provide examples.
• Explain why labor is generally a fixed cost.
• Calculate straight line depreciation.
• List cost and revenue centers in the typical clinical laboratory.
• Perform a micro and macro cost analysis.
• Interpret the results of the break-even point and operating leverage calculations.

Course Outline

• Introduction to Making Informed Financial Decisions for the Clinical Laboratory
• Introduction
• Managed Care Plans
• Medicare-Medicaid Health Payment
• Physician Groups
• In-House Laboratory Testing
• Monitoring Cost and Revenues
• Why Monitor Costs and Revenue?
• Cost Determination
• True or False: 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
• Cost and 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
• Describing Cost Analysis in the Clinical Laboratory
• Example of Macro Cost Analysis
• Example of Micro Cost Analysis
• An annual macro cost analysis of the clinical chemistry laboratory demonstrated that the cost per patient reportable test (PRT) had increased signific...
• Break-Even Point Analysis and Operating Leverage
• Calculating Break-Even Point
• Example of Break-Even Point Analysis
• Operating Leverage
• Example of Operating Leverage
• The clinical laboratory reported $1,300,000 in revenue, 650,000 patient reportable tests, fixed costs of $200,000, and variable costs of $250,000. Wha...
• The clinical laboratory reported $1,300,000 in revenue, 650,000 patient reportable tests (PRT), fixed costs of $200,000, and variable costs of $250,00...
• Measuring Productivity
• Measuring Productivity
• True or False: If supply costs in the example go up by $10,000 and the labor costs go down by $15,000, the profit margin per reportable test will go d...
• 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