Laboratory costs and utilization: a framework for analysis and policy design

Area of Science:

• Healthcare Management
• Clinical Laboratory Science
• Health Economics

Background:

• Laboratory test ordering is a complex system with significant financial implications.
• Escalating costs of laboratory testing represent a substantial portion of overall hospital expenditures.
• Effective management of laboratory resources is crucial for healthcare cost containment.

Purpose of the Study:

• To introduce a conceptual framework for analyzing laboratory test-ordering patterns.
• To evaluate the input, process, and output phases of the laboratory inquiry system.
• To provide a basis for developing cost-reduction strategies in laboratory services.

Main Methods:

• Development of a conceptual framework categorizing laboratory inquiry systems into input, process, and output phases.
• Analysis of contemporary Canadian data on laboratory test-ordering patterns and associated costs.
• Evaluation of the escalating costs within the context of hospital financial structures.

Main Results:

• Data indicate a significant escalation in the cost of laboratory testing.
• Laboratory testing costs constitute a sizable proportion of total hospital costs.
• The complexity of the laboratory inquiry system contributes to cost challenges.

Conclusions:

• A structured conceptual framework is essential for understanding and managing laboratory test-ordering patterns.
• Policy interventions aimed at cost reduction require thorough analysis within this framework.
• Sophisticated control programs at multiple levels of the laboratory system are necessary for effective cost management.