Most healthcare institutions support in-house laboratory testing if the cost, revenue, and volume justify the testing. In the case of managed care and capitation agreements, patient stays and costs can be reduced. Monitoring testing costs, revenues, and profitability are essential institutional management tools to justify in-house testing.
At the laboratory management level, determining costs and revenues provides important productivity indices that can be monitored monthly and annually to assist the laboratory manager in making adjustments when productivity decreases and cost increases occur.
