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 test will go down.
Table 5. Productivity Indices.Clinical Chemistry Laboratory | Sunshine Medical Center Quarterly Report |
Reportable Tests | 20,000 | |
Direct Cost | 130,000 | Resource Utilization | Direct Cost/Reportable Test | 6.50 |
Indirect Cost | 10,000 | Indirect Cost/Reportable Test | 0.50 |
Total Cost | 140,000 | Total Cost/Reportable Test | 7.00 |
Supply Cost | 30,000 | Total Supply Cost/Reportable Test | 1.50 |
Equipment Cost | 25,000 | Equipment Cost/Reportable Test | 1.25 |
Labor Cost | 85,000 | Productivity of Work Force | Labor/ Reportable Test | 4.25 |
Technical Labor | 75,000 | Technical Labor/Reportable Test | 3.75 |
Non-technical Labor | 10,000 | Non-technical Labor/Reportable test | 0.50 |
Revenue | 200,000 | Return on Investment Ratio | Revenue/Reportable Test | 10.00 |
Profit Margin | 60,000 | Profit Margin/Reportable Test | 3.00 |
Patients Seen in Facility | 5,000 | Revenue/Patients Seen in Facility | 40.00 |
Select true or false