The cost of laboratory technology: a framework for cost management

Laboratory costs at Vancouver General Hospital have been increasing over the past decade. Of the numerous explanations that have been offered for these increases, one contributing factor is the impact of automation and technology. An aggregate measure of laboratory technology was constructed and the net contribution to cost per acute care admission was estimated. Technology has two counteracting effects: It stimulates demand for tests, thus increasing cost per acute care admission, and it increases productivity, thus reducing costs. Effective management may be able to achieve the cost reductions without incurring an increased demand.