An analysis of cost studies performed in public health laboratories

From 1973 to 1976, 23 public health laboratories performed cost accounting studies with the assistance of the Laboratory Management Consultation Office, Center for Disease Control. Cose data obtained in 16 of these laboratories were used as the basis of a discussion on the identification of indirect expenses and the method of reapportioning these costs to the diagnostic testing sections of the laboratories. Calculations of cost-per-weighted units and cost-per-test of some laboratory diagnostic sections are presented. A laboratory administrator can gain some insight into the effectiveness of resource utilization within his own laboratory by identifying cost center expenditures and considering differences in cost-per-weighted unit among the various revenue-producing sections. With the currently available data, no significant relationship between indirect costs and overall laboratory cost-per-weighted unit was demonstrated. It is hoped that additional data can be gathered and other indices developed which will help laboratory management to more precisely identify and then control indirect costs.