Basic Concepts for Making Informed Financial Decisions for the Clinical Laboratory Part 3: Development and Utilization of the Laboratory Budget and Inventory Management (Online CE Course)

(based on 42 customer ratings)

Author: A. Wayne Bruce, Ph.D., MT (ASCP)
Reviewer: Larry Brace, Ph.D., MT(ASCP)SH
Reviewer: Julie Ann West, PhD, MLS(ASCP)CM, SM(ASCP)CM

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Basic concepts for the development and utilization of the laboratory budget and Inventory management are presented. The budget steps required to create a budget, monitor, and when to adjust are described. An example of an inventory management process is described including the ordering process, supply management when to order, and how to maximize pricing from suppliers is presented.

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Continuing Education Credits

P.A.C.E.® Contact Hours (acceptable for AMT, ASCP, and state recertification): 1 hour(s)
Approved through 1/31/2026
Florida Board of Clinical Laboratory Personnel Credit Hours - Supervision/Administration, Quality Control/Quality Assurance, and Safety: 1 hour(s)
Approved through 1/31/2026

Objectives

  • Define what a budget is and describe the phases of the budget process.
  • Develop goals for a laboratory budget and list the major categories of the laboratory budget.
  • Describe several budget assumptions and discuss cost and revenue projections.
  • Monitor the budget, explain variances, and make adjustments.
  • Describe an inventory management process as it applies to the clinical laboratory.
  • List the steps required to implement an inventory control program.
  • Discuss the proper location and storage of incoming supplies as applicable to the inventory management plan.
  • Discuss a monitoring system to assure adequate inventory without surplus.
  • Describe the importance of tracking supply usage and setting PAR level points.
  • Name factors to consider in the procurement of supplies.

Customer Ratings

(based on 42 customer ratings)

Course Outline

Click on the links below to preview selected pages from this course.
  • Introduction: Budget and Inventory Management
      • Introduction
      • Introduction to the Laboratory Budget
      • Before managed-care hospitals, the laboratory was evaluated on the cost per test versus revenue per test.
      • Introduction to Inventory Management
  • The Budget Process: Definition and Phases
      • Budget Defined
      • An important function of the budget process is to inform the institution's financial decision-makers of the laboratory's predicted expenses to allow f...
      • Phases of the Budget Process
    • Phase I: Development of Budget Goals
      • Phase I: Budget Goals
      • A major consideration in developing the laboratory budget is to provide justification for all expenses when the laboratory budget is not fully in sync...
    • Phase II: Budget Assumptions
      • Phase II: Budget Assumptions
      • Phase II: Budget Assumptions, continued
      • One possible assumption in budget preparation is that the previous year's expenses will remain similar in the next fiscal year.
    • Phase III: Forecast
      • Phase III: Forecast - Budget Categories
      • Phase III: Forecast - Cost and Revenue Projections
      • Phase III: Forecast - Cost and Revenue Projections, continued
      • Phase III: Forecast - Opportunities for Cost Containment
      • Phase III: Forecast - Preparing the Final Budget
      • Forecasting includes all of the following, except:
    • Charting the Budget
      • Charting the Laboratory Budget: The Big Picture
      • Charting Expenses by Departments in the Laboratory: Monitor, Explain Variances, and Make Adjustments
      • When charting the laboratory budget, it is important to:
    • Budget Summary
  • Inventory Management
    • Introduction to Inventory Management
      • What is Inventory Management? What Steps are Required?
      • One of the most effective ways to reduce costs and improve productivity is to:
    • The Process for Creating an Inventory Management Plan
  • 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: Basic concepts for development and utilization of the laboratory budget and inventory management are presented. The budget steps required to create a budget, monitor, and when to adjust are described. An example of an inventory management process is described including the ordering process, supply management, when to order, and how to maximize pricing from suppliers is presented.
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 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. 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.
Reviewer Information:  Dr. Julie Ann West is certified by the American Society for Clinical Pathology (ASCP) as a Medical Laboratory Scientist (MLS) and as a Specialist in Microbiology (SM). In addition, Dr. West has earned a PhD in Public Health - Epidemiology Specialization (emphasis: infectious disease) - and is Certified in Public Health (CPH) by the National Board of Public Health Examiners. Dr. West is experienced as a Technical Specialist, Safety Officer, Educator, and Lead in the Veterans Administration Healthcare System, and has prior experience as an Administrative Laboratory Director. Dr. West also has extensive experience as a certified Contracting Officer Representative (COR) Level II for the Veterans Administration.

How to Subscribe
MLS & MLT Comprehensive CE Package
Includes 178 CE courses, most popular
$109Add to cart
Pick Your Courses
Up to 8 CE hours
$55Add to cart
Individual course$25Add to cart
Need multiple seats for your university or lab? Get a quote
chartinglabbudget


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