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Residents Save $2M By Eliminating Needless Lab Tests



Having noticed that "the majority of tests we were ordering... really didn't impact the day-to-day care," a group of neurosurgery residents identified five lab tests that could be eliminated without affecting patient safety. They generated nearly $2 million in savings, including $75,000 in direct costs for their medical center.



4 comments on "Residents Save $2M By Eliminating Needless Lab Tests"
Real savings (10/27/2013 at 9:25 AM)

Honest accounting is right. The majority of the tests are chemistry tests.The real savings are the cost of reagents and controls. Thus $75,000 are the real savings. As my CFO would say the $2 million is" funny money".
Honest Accounting (10/23/2013 at 2:05 PM)

Good story and good effort, but please some truth in accounting! The project reduced CHARGES by $1.7 million, which probably did not mean much (if any) in real costs differences to the insurers, who probably paid per case or per day reimbursements that were not changed by reduced testing. It is good to reduce utilization that does not benefit patients, but care should be taken to report that correctly.
DonaldStumpp (10/23/2013 at 1:08 PM)

In other news.... the Lab Director was fired for not achieving revenue goals. Oh what a tangled web we weave. If the hospital revenues are on a DRG or case basis, then there truly is savings to the hospital, otherwise, this savings cost them. I'm not arguing it should not be done, but shows how incentives can be misplaced. If there is not value in the procedure or test or service, it needs to be eliminated.
Tyco Brahe (10/21/2013 at 10:42 AM)

More proof that the high costs of healthcare have little to do with doctors ordering tests for fear of lawsuits. They orders tests because it has become standard-of-care to order these tests.