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Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object],“ Laboratory Outreach Financial Boot Camp”  Developing the financial plan and metrics for your outreach program ,[object Object],Las Vegas, Nevada June 18, 2008 Management Decision Systems, Inc. ,[object Object],[object Object]
The Laboratory – A Diagnostic Service Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object],The Laboratory Did you know… Few members of your medical staff understand what is involved with providing a test
Overview ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object]
Re-Thinking The Laboratory ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object]
[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object],is a detail-oriented    business.
[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object],If you can’t monitor it, ,[object Object],you can’t monitor it.
Background and Overview ,[object Object],[object Object],[object Object],[object Object],[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object],For the purpose of this talk, there is little difference between the major LIS vendors
Laboratory Breakeven Analysis Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object],$ Tests Labor – Salary Wages & Fringe (25%) Pathologists Generally Not Included Other – Accreditation, Books, Couriers etc. Total Fixed Zero tests Supply – Variable Cost Other - Fixed Cost Labor  - Fixed Cost Revenue Breakeven Profit Profit Total Cost Total Tests Sold Total Cost Line Total Cost Total Cost Total Cost Gross Net Revenue
Laboratory Breakeven Analysis Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object],$ Tests Revenue Laboratory Breakeven Analysis Test Counts & Projecting Revenue
Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object],A successful outreach program requires a close & ongoing working relationship between the laboratory and hospital finance. The Laboratory & Hospital Finance  A Marriage of Necessity! The  Laboratory Hospital Finance
STANFORD’S  LAB OUTREACH  UP FOR SALE; WHAT WENT WRONG? Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object],Laboratory Economics  April 2008
STANFORD’S LAB OUTREACH UP FOR SALE; WHAT WENT WRONG? ,[object Object],[object Object],[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object],Laboratory Economics  April 2008
Test Counts ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object]
[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object],than precisely wrong P Thomas Hirsch Path Lab 1986
Estimating Net Revenue ,[object Object],[object Object],[object Object],[object Object],[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object]
Estimating Net Revenue ,[object Object],[object Object],[object Object],[object Object],[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object]
Estimating Net Revenue ,[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object]
Revenue & Direct Operating Cost Rule of Thumb ,[object Object],[object Object],[object Object],[object Object],[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object]
Laboratory Breakeven Analysis Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object],$ Tests Laboratory Breakeven Analysis Supply – Variable Cost Supply – Variable Cost
Supply Costs ,[object Object],[object Object],[object Object],[object Object],[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object]
Laboratory Breakeven Analysis Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object],$ Tests Laboratory Breakeven Analysis Labor – 50% of Fixed cost Labor  - Fixed Cost
The Laboratory Staff ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object]
[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc.
Laboratory Opportunity Cost ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © 1999-2008 Management Decision Systems,  Inc .  MAST®
Laboratory Breakeven Analysis Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object],$ Tests Laboratory Breakeven Analysis Data, Data Collect & Information
Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object],A successful outreach program requires a close & ongoing working relationship between the laboratory, hospital finance & the IT department. The Laboratory The Laboratory, Hospital Finance The Laboratory, Hospital Finance & IT The Laboratory Hospital Finance IT
Enterprise Interface Flow Diagram Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object]
Data Collection ,[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object],•  Granularity – Drill Down •  Refresh Rate – Daily, Hourly ,[object Object],•  Management data often difficult to extract
Data Collection ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object]
On Line Analytical Processing (OLAP) Excel 2000 – 2007  Copyright© 1999-2008 Management Decision Systems,  Inc.  MAST®  OLAP aka Pivot Table
On Line Analytical Processing (OLAP)  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc.  MAST®
Laboratory Breakeven Analysis Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object],$ Tests Laboratory Breakeven Analysis Metric Performance Standards
Performance Metrics ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object]
Metric Process Exploration ,[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc.
What did we do right? Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What did we do Wrong? Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Objective – Eliminate waste & rework Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object],Present Performance Future Performance
Performance Metrics ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object]
[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object],Feed the chickens ,[object Object],Reward the eagles
Dashboard & Detail Reporting Improving Laboratory Operations Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object],Sales Operations
Reporting and Trigger Alert Systems  ,[object Object],[object Object],[object Object],[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc.  MAST®  January 2006 Trigger Reporting starts *  Washington, DC 9/27/06 G2 Lab Institute “Case Study Maryland General Hospital”, R. Ouellette, N. Hess
Do-Be-Do Rule ,[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object],People will do what you ask,
Marketing Your Outreach Plan ,[object Object],[object Object],[object Object],[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object]
Keep it simple…  play to your audience ,[object Object],[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],Keep it simple…  play to your audience Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object]
[object Object],[object Object],[object Object],[object Object],Bring your Berlitz book Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object]
[object Object],[object Object],[object Object],[object Object],Sponsors & Succession Planning Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object]
Summary Remarks ,[object Object],[object Object],[object Object],[object Object],[object Object],Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object]
Thank you! Copyright© 1999-2008 Management Decision Systems,  Inc. ,[object Object]

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G2 Financial Boot Camp - Laboratory Outreach

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Editor's Notes

  1. Underlying the power of all quality management tools is the need to collect accurate data in real time. Increasingly, laboratories are turning to middleware solutions to extract data about specific work processes and present it in easy-to-read dashboard formats. This session teaches techniques to collect data from existing information systems and use this data to support process improvement activities. It will provide insights about how to use informatics to sup-port process measurement, including initial assessment ,feedback ,and control loops.