COST BENEFIT ANALYSIS OF MEDICAL LABORATORY TESTS

Introduction:Management in clinical diagnostic fields argon frequently involved in cost abridgment of juvenile procedures due(p) to the constantly changing science and technology. Also due to the health care organization especially the diagnostic piece being tightly regulated by accreditation and regulatory bodies transport a new procedure in-house requires in depth analysis prior to an any decision being taken.

Cost heading:In a clinical laboratory in a small community hospital we currently refer specimens for chuck up the sponge PSA (prostatic specific antigen) to a large commercial laboratory. A prominent doctor on staff has requested that us to start doing the ravel in-house to improve turnaround time. To do this, we would get to offer a total PSA and a trim PSA together. We currently perform the total PSA in-house. The physician states that if he can have timely results for the paired test, he estimates that it will eliminate the need to perform approximately 60 prostate biopsies a year.

Free PSA (cost activity / object) is addressable on equipment that we currently use under a reagent letting agreement (we pay only for reagents, as the cost of the equipment is furled into the cost of the reagents). The vendor has quoted a price of $8.00 per test (not $8.00 per billable test) for expel PSA reagents.

Issues to consider in evaluating the profitability of bringing the test ( Free PSA ) in house:1.Effect on grade cost.

2.



Possible increase in indirect costs3.Re-evaluation of equipment costs(capital) may be needed4.Rate of re-imbursement from provincial gov. or Finance Dept.

5.Possible Intangibles to be factored into the decision6.Pricing the test7.Is it worth bringing in?Background:In the laboratory, managerial accounting includes activities such as micro-costing (the process of determining the actual cost of performing a billable procedure), performing analyses of services and equipment in order to evaluate their profitability, and budgeting (the...

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