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Basic Concepts for Making Informed Financial Decisions for the Clinical Laboratory - Part 1 (Online CE Course)

(based on 21 customer ratings)

Author: A. Wayne Bruce, Ph.D. MT ASCP
Reviewer: Larry Brace, Ph.D., MT(ASCP)SH

The course introduces the participant to financial analysis processes for the clinical laboratory. Participants will become familiar with several accounting terms, learn how to calculate depreciation, and understand how to perform micro and macro cost analysis studies. They will learn how to calculate the break-even point and operating leverage for laboratory cost and revenue centers. They will be able to calculate several resource utilization and productivity indices and apply them in managing the clinical laboratory.

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Continuing Education Credits

P.A.C.E.® Contact Hours (acceptable for AMT, ASCP, and state recertification): 1 hour(s)
Course number 578-027-19, approved through 6/21/2021
Florida Board of Clinical Laboratory Personnel Credit Hours - Supervision/Administration, Quality Control/Quality Assurance, and Safety: 1 hour(s)
Course number 20-726300, approved through 9/1/2020

Objectives

  • Describe several resource utilization and productivity indices and how to apply them in managing the laboratory.
  • Define several accounting terms.
  • Describe fixed and variable costs and give examples.
  • Explain why labor is generally a fixed cost.
  • Calculate straight line depreciation.
  • Define cost/revenue centers.
  • List several cost/revenue centers in the typical clinical laboratory.
  • Perform a micro and macro cost analysis.
  • Calculate break-even-point and operating leverage and interpret the results.
  • Describe several resource utilization and productivity indices and how to apply them in managing the laboratory.

Customer Ratings

(based on 21 customer ratings)

Course Outline

Click on the links below to preview selected pages from this course.
  • Introduction to Making Informed Financial Decisions for the Clinical Laboratory
  • Monitoring Cost and Revenues
      • Why Monitor Costs and Revenue?
      • Cost Determination
      • If the laboratory manager does not perform any part of testing process this person's salary is considered an indirect cost.
      • Calculating Depreciation of Capital Costs
      • Example Cost Revenue Centers in the Clinical Laboratory
      • A new hematology instrument was purchased for the clinical laboratory. The cost was $72,000, the useful life was considered to be 5 years and the annu...
  • Performing a Cost Analysis Study in The Clinical Laboratory
  • Calculating break-even-point and operating leverage and interpretation
      • Calculating break-even-point (BEP)
      • Break-even-point (BEP) Analysis Example
      • Operating Leverage (OL)
      • Operating Leverage (OL) Example
      • The clinical laboratory reported S1,300,000 in revenue, 650,000 patient reportable tests with fixed cost of $200,000, and variable costs of $250,000. ...
      • The clinical laboratory reported S1,300,000 in revenue, 650,000 patient reportable tests (PRT) with fixed cost of $200,000 and variable costs of $250,...
  • Measuring Productivity
      • Measuring Productivity
      • If supply costs in the example in Table 5 go up by $10,000 and the labor costs go down by $15,000 the Profit margin per reportable indice will go down...
      • Helping Hand Medical Center Laboratory quarterly report included supply costs of $105,000, technical labor costs of $125,000, and Non technical labor ...
  • Summary
  • References
      • References

Additional Information

Level of instruction: Basic

Intended Audience: Medical laboratory scientists, medical technologists, and technicians. This course is also appropriate for medical laboratory science students and pathology residents.
 
Course Description: The course introduces the participant to financial analysis processes for the clinical laboratory. Participants will become familiar with several accounting terms, learn how to calculate depreciation, and understand how to perform micro and macro cost analysis studies. They will learn how to calculate the break-even point and operating leverage for laboratory cost and revenue centers. They will be able to calculate several resource utilization and productivity indices and apply them in managing the clinical laboratory.
Author Information: Dr. A. Wayne Bruce has B.S. and M.S. degrees in Medical Technology and a Doctorate degree in Higher Education Administration and Statistics from the University of Minnesota. He has served as Director of a CLS Program for 25 years and as laboratory Director and Technical Consultant for over 35 years. He most recently was Associate Dean at the Northern Ontario School of Medicine. Dr. Bruce is President of Bruce North Country Consulting Services LLC and consults to clinical laboratories on laboratory finance, start-up, management, and accreditation. He currently directs a clinical laboratory. He has numerous publications including a book on quality assurance for the clinical Laboratory and a financial management manual for the Thompson Publishing Group.
 
Reviewer Information: Larry Brace, Ph.D., MT(ASCP)SH has over 40 years of experience as a medical laboratory scientist. He holds a B.S. degree in Medical Laboratory Sciences and an M.S. degree in Clinical Pathology from Michigan State University and a Ph.D. degree in Pharmacology from the University of Illinois at Chicago. He has been an Associate Director of the Medical Technology Program at Michigan State University, Professor of Medical Laboratory Sciences and Professor of Pathology at the University of Illinois at Chicago (UIC). He was also the Director of Core Laboratories at UIC until his retirement from UIC. Dr. Brace has published more than 40 articles in major refereed scientific journals and has nearly 100 presentations (abstracts and podium presentations) at major national and international scientific meetings.

ADC example
Annual depreciation cost
BEP example
break-even equations
DCPT
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ADC example


Annual depreciation cost


BEP example


break-even equations


DCPT