Seattle-King County revisited

For approximately five years the Seattle-King County Public Health Laboratory has measured its diagnostic laboratory workload quantitatively in terms of relative values. Seattle-King County has used the laboratory average cost-per-relative value concept. However, increasing operational costs, multiple demands for the same tax dollar, and professional desire for more precise costing information led the laboratory staff to refine their method of determining a cost-per-relative value. This article shares their new methodology of determining a cost-per-relative value for each primary cost center. Also shared are a few examples of how costs differ when using the old method in comparison to using the new method.