Although the profit margin of hospital laboratories is usually slim to nonexistent, they could provide positive earnings if the right strategic decisions are made, according to research from business growth firm Frost & Sullivan.
In a recent Frost & Sullivan survey of hospital laboratory directors, 67 percent recognized hospital labs in general as cost centers, but 55 percent viewed the hospital as a whole entity as a profit center.
"Laboratory directors are being challenged to contribute to, and not drain, their hospital's bottom line," according to the news release. "While hospital census for elective procedures has decreased, demand for laboratory screening, diagnostic and esoteric testing has actually increased."
Frost & Sullivan analysts said hospital executives can move their organization's labs toward profitability by first recognizing the nature of test orders (i.e., which tests are profitable and which ones lead to losses). In addition, hospitals must be able to distinguish the break-even point for screening, diagnostic, esoteric and physiologic tests. Finally, strategic partnerships and joint ventures with reference labs could also lead to operational efficiencies and cost savings, according to the release.
In a recent Frost & Sullivan survey of hospital laboratory directors, 67 percent recognized hospital labs in general as cost centers, but 55 percent viewed the hospital as a whole entity as a profit center.
"Laboratory directors are being challenged to contribute to, and not drain, their hospital's bottom line," according to the news release. "While hospital census for elective procedures has decreased, demand for laboratory screening, diagnostic and esoteric testing has actually increased."
Frost & Sullivan analysts said hospital executives can move their organization's labs toward profitability by first recognizing the nature of test orders (i.e., which tests are profitable and which ones lead to losses). In addition, hospitals must be able to distinguish the break-even point for screening, diagnostic, esoteric and physiologic tests. Finally, strategic partnerships and joint ventures with reference labs could also lead to operational efficiencies and cost savings, according to the release.
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