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Health Care Development Services, Inc.
Laboratory Strategic Planning Since 1981

 

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LabTrends SM

Hospital Laboratory Comparative Program

Benchmarking hospital laboratory performance is essential to the operational and organizational decision-making process. The right data, correctly analyzed, will lead the way to greater productivity, cost-effectiveness, and outcomes measurements.

LabTrendsSM  provides you with the information you can count on...

More effective benchmarking

The LabTrendsSM program is unique in determining groups of hospitals for comparison purposes.  While test volume, teaching vs. non-teaching status, and the operational characteristics of the laboratory are always used as tabulation criteria, LabTrendsSM goes further to provide more user specific comparisons.

After initial LabTrendsSM reports are produced, we review the unique aspects of performance indicators with each subscriber.  User-defined unique aspects of laboratory performance are then incorporated as additional tabulation criteria into a subsequent LabTrendsSM report.

In the example below, the first LabTrendsSM report was based on on-site test volume, teaching vs. non-teaching status, and the operational characteristics of the laboratory.   Once it was determined that inpatient utilization and test result turn-around times were unique for this hospital, the tabulation criteria for the subsequent LabTrendsSM Side-By-Side report included those performance indicators.

LabTrendsSM reports provide subscribers with greater specificity and more precise measures for benchmarking comparative laboratory performance.

LabTrendsSM
Hospital Laboratory Comparative Report

SIDE-BY-SIDE COMPARISON REPORT

Tabulation Criteria

1. Non-Teaching Hospital Laboratories                                                                           

2. On-Site Performed Test Volume Between 350,000 and 750,000                                

3. Inpatient Test Utilization Greater Than 21 Inpatient Tests/Discharge (Case Mix Adjusted)

4. Service Level Demands (Testing Performed < 2 hours) Greater Than 45% For All Testing

©1986, 1987 Health Care Development Services, Inc.
Northbrook, Illinois

Equivalency in Test Counts

Hospital-specific differences in billing systems can account for +15-34% variation in the number of tests performed.

In order to establish parity in comparisons, LabTrendsSM copy-righted and decade-proven six-step test counting methodology analyzes the way your lab performs tests in order to recast your "raw billed test count" into a standard unit of measure, based on the way the test is performed. LabTrendsSM subscribers use detailed work sheets to specify the "explosion" and "implosion" of billed tests to performed tests.

The LabTrendsSM Six-Step
Test Volume Adjustment Process

BILLED TESTS
- STAT/Administrative Units
- Referred Tests
+ Transferred Tests
+ Test Volume Adjustment
                                                    
= PERFORMED TESTS

Benchmarking labs in healthcare networks

Hospital systems and affiliated healthcare organizations can evaluate the performance of one lab versus another lab in the same network.  Database means and quartile values can be calculated based on "group specific" values.

For our purposes, "networks" can include:

Proprietary hospital systems (All or regional)
Hospitals in the same city
Consolidated/shared laboratories

Include all labs

Not all hospital laboratory testing is performed in the Main Lab. Some is performed in critical care areas, emergency rooms, operating rooms and on nursing floors.  Tests performed in these decentralized areas should be included in the overall picture.

Assess individual sections of your lab

Section level comparisons provide detailed information to assess individual areas of the main laboratory. 

As an optional feature, subscribers may provide data for section level LabTrendsSM comparative reports.

Comprehensive information is critical

LabTrendsSM reports include the most comprehensive information available to help hospital administrators and laboratory directors better understand their laboratory operations relative to the other hospitals with similar operating characteristics.

Indicator categories are organized into the following groups:

Financial Performance
Productivity
Span of Control
Staffing Mix
Utilization
Test Result Turn-Around-Time

Test result turn-around time affects productivity and the testing personnel expense.  LabTrendsSM is the only hospital laboratory benchmarking program that provides TAT data—

by test name
by section
by shift
descending volume

In addition to information presented in tabular format, LabTrendsSM reports also provide graphic displays for faster/easier visual review.

Includes all direct operating expenses

LabTrendsSM captures all direct operating expenses hospital administrators want to evaluate.  LabTrendsSM incorporates the same expenses that appear on most hospitals' Revenue and Expense reports.

Because we have standardized the same expenses that appear on your Revenue and Expense report, you are assured of consistent definitions of direct operating expenses.

For example, test supply expense includes reagent rental costs as well as typical supply expenses.  Since more and more hospitals are acquiring technology via reagent rental, it's important to include those costs.

Many hospitals' biomedical engineering departments or outside insurance companies provide repair/preventive maintenance services.  LabTrendsSM includes those costs in addition to standard R/PM expenses.

For hospitals in multi-hospital/regional laboratory systems, LabTrendsSM also accounts for transferred expense/reimbursement where testing is ordered in one location, but performed in another.

Compensation paid to pathologists is an integral part of laboratory expense, so we have included it in LabTrendsSM.  Furthermore, LabTrendsSM distinguishes between compensation for pathologist administrative activities versus compensation paid to salaried pathologists.

LabTrends

SM

HOSPITAL LABORATORY COMPARATIVE PROGRAM

Performance Indicators



EXECUTIVE SUMMARY
  1. Lab expense as percent of hospital operating expense
  2. Laboratory cost per discharge
  3. Laboratory cost per on-site performed test
  4. Compensation & benefit expense per paid hour
  5. Supply expense per on-site performed test
  6. Admin. fees - Path. comp. per on-site performed test
  7. Tests per testing personnel
  8. Tests per total personnel
  9. Number of on-site performed tests per worked hour
  10. Number of supervisors/manager
  11. Number of FTE's/supervisor
  12. Number of testing personnel/technical supervisor
  13. Percent inpatient tests of total laboratory tests
  14. Percent outpatient and other tests of total laboratory tests
  15. Inpatient tests per discharge
  16. Number of outpatient tests per outpatient visit
  17. Percent total tests performed < 2 hours

FINANCIAL PERFORMANCE / Lab Expenses By Category

  1. Gross employee compensation expense
  2. Benefits expense
  3. Blood and blood products expense
  4. Blood Supply expense
  5. Esoteric reference expense
  6. Repair and preventive maintenance expense
  7. Rent /lease expense
  8. Depreciation expense
  9. Other/transfer expense
  10. Admin. fees -Path. comp.
  11. Other/miscellaneous expense

 FINANCIAL PERFORMANCE / Charges

  1. Laboratory charges per inpatient test
  2. Laboratory charges per patient day
  3. Laboratory charges per discharge
  4. Laboratory charges per outpatient and other tests
  5. Laboratory charges per outpatient test
  6. Laboratory charges per other test
  7. Laboratory charges per hospital generated test
  8. Laboratory charges per outpatient visit
  9. Laboratory cost to charge ratio

FINANCIAL PERFORMANCE / Expenses

  1. Lab expense as percent of hospital operating expense
  2. Laboratory cost per inpatient day
  3. Laboratory cost per discharge
  4. Laboratory cost per on-site performed test
  5. Compensation & benefit expense per on-site per formed test
  1. Supply expense per on-site performed test
  2. Cost per referred test
  3. Repair & preventive maint. exp. per on-site performed test
  4. Depreciation expense per on-site performed test
  5. Pathologist compensation per on-site performed test
  6. "Other" expense per on-site performed test
  7. Compensation & benefit expense per paid hour
  8. Expense per paid hour
  9. Charges per paid hour

PRODUCTIVITY

  1. Tests per testing personnel
  2. Tests per total personnel
  3. Number of on-site performed tests per worked hour
  4. Worked hours as a percent of paid hours

MANAGEMENT AND STAFFING

  1. Percent managers of total FTE's
  2. Percent supervisors of total FTE's
  3. Percent routine testing FTE's of total FTE's
  4. Percent support personnel of total FTE's
  5. Number of FTE's/Manager
  6. Number of supervisors/manager
  7. Number of FTE's/supervisor
  8. Number of testing personnel/technical supervisor
  9. Percent testing M.T.'s of total testing personnel
  10. Percent testing M.L.T.'s of total testing personnel
  11. Percent supervisor testing FTE's of total testing personnel
  12. Percent other testing personnel of total testing personnel
  13. M.T. to M.L.T. testing FTE ratio

UTILIZATION

  1. Percent inpatient tests of total laboratory tests
  2. Percent outpatient tests of total laboratory tests
  3. Percent other tests of total laboratory tests
  4. Percent outpatient and other tests of total laboratory tests
  5. Percent referred tests of total laboratory tests
  6. Inpatients tests per patient day
  7. Inpatient tests per discharge
  8. Number of outpatient tests per outpatient visit

TURN-AROUND-TIME

   77/78. Percent total tests performed < 2 hours and > 2 hours

* Turn-Around-Time

• By test name
• By section
• By shift
• Descending volume by name

Data collection is fast and easy with LabTrendsSM

Much of the data needed for LabTrendsSM is readily available from existing hospital reports, such as

Revenue and Utilization Report
Revenue/Expense Report
Payroll records
Laboratory staffing schedule
Patient activity records

Data required includes:

Hospital demographics
Laboratory operational characteristics
Charges
Direct operating expenses
Test volume (Billed and Adjusted)
Staffing levels by job classification
Turn-around-time

Collect and submit data electronically

Electronic data transmission means reduced opportunity for errors in transposition. The LabTrendsSM data collection disk will work on any PC compatible system.

Audited data validation

Not all numbers are good data. And it's not even necessarily anyone's fault, or easy to spot.

LabTrendsSM data submitted by our subscribers is validated by professionals who spend their time consulting to hospital laboratories. The LabTrendsSM process includes a detailed review of all raw data by our staff analysts, and an audit/validation process for any data elements whose accuracy is questioned.

Getting started

The LabTrendsSM program always begins with a 1-1/2 hour conference call to help subscribers review the data collection worksheets. Knowledgeable staff are available to answer questions during the data collection process.

Take the first step towards greater productivity, cost effectiveness, and outcomes management. Just fill out the subscription form below:

LabTrendsSM
Hospital Laboratory Comparative Program

Participation Order Form

Hospital:
Name
Address
City, State, Zip
Subscriber Contact:
Name:
Title:
Telephone Number:

Yes, I want my hospital to participate in the LabTrendsSM Hospital
Laboratory Comparative program.  Please contact me to arrange for
mailing the data collection materials.

I am interested in having my hospital participate in the LabTrendsSM
Hospital Laboratory Comparative program. Please call me; I have
questions about the LabTrendsSM program

 

 

 

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Copyright © 1998 Health Care Development Services, Inc.
Last modified: February 03, 2000