[Histonet] Cost per test averages

[Joe W. Walker, Jr.]

This is very true, Rene but lab costs can vary widely due to group purchasing contracts and other negotiations that are slightly outside of the lab's control.  When we performed this analysis, we look at consumable costs in addition to technologist's salary cost to figure out total cost per test/CPT code that we bill.  For salary costs we utilized the following table with calculations (numbers are fictitious).  The % per day is the total number of hours worked for 2 people divided by the hours/day.  The % of salary is the FY salary divided by the %/day.  The Salary/task is simply a division of the %salary by the FY volume for the task.   Your consumable costs should be fairly easy to calculate based on what you pay for slides, cassettes, prefilled formalin, etc.    We matched all of this up to our various CPT codes as a comparison to potential reimbursements.  It may not be perfect but it gave us a pretty close guestimate and a tool to negotiate with vendors to help lower our costs against our reimbursement margin.




Hours/Day

%/Day

FY Volume

% of Salary

Salary/Task

Embed

2.5

15.6

11920

$    15,625.00

 $           1.31

Microtomy

4.5

28.1

11920

$    28,125.00

 $           2.36

Gross

3.0

18.8

11920

$    18,750.00

 $           1.57

IHC/Special

2.0

12.5

2968

$    12,500.00

 $           4.21

nonproductive time

4.0

25.0



$    25,000.00



Total

16.0

100.0








FY Salary

$  100,000.00

Total for 2 people

16






Joe W. Walker, Jr. MS, SCT(ASCP)

Anatomical Pathology Manager

joewalker at rrmc.org, www.rrmc.org



-----Original Message-----
From: Rene J Buesa via Histonet <histonet at lists.utsouthwestern.edu>
Sent: Monday, November 12, 2018 11:28 AM
To: 'histonet at lists.utsouthwestern.edu' <histonet at lists.utsouthwestern.edu>; Terri Braud <tbraud at holyredeemer.com>
Subject: Re: [Histonet] Cost per test averages



Terri:

All you wrote is absolutely true BUT has nothing to do with the "negotiating" aspect Charlie us asking about.He asked about the price he wants to pay and that will depend on his purchase volume that could determine, if his' is large enough, may entice the seller to reduce his profit margin.

René

    On Monday, November 12, 2018, 9:57:37 AM EST, Terri Braud via Histonet <histonet at lists.utsouthwestern.edu<mailto:histonet at lists.utsouthwestern.edu>> wrote:



 I find it very peculiar to be lectured by a Roche representative on including reagent management when calculating stain costs, considering Roche's yearlong ongoing issues with reagent supply problems and massive recalls.  I've yet to have one month with no reagent supply problems from Roche/Ventana.  Failed dispensers, multiple recalls, major delays in deliveries of supplies (the most recent was a TWO MONTH BACKORDER on a routinely run antibody) and the list goes on.

Roche needs to get their own house in order before they come on a technical list-serve to lecture.

Just saying...



Terri L. Braud, HT(ASCP)

Anatomic Pathology Supervisor

Laboratory

Holy Redeemer Hospital

1648 Huntingdon Pike

Meadowbrook, PA 19046

ph: 215-938-3689

fax: 215-938-3874

Care, Comfort, and Heal



Today's Topics:

Message: 2

Date: Sat, 10 Nov 2018 14:54:19 -0500

From: "Frazier, John" <john.frazier at roche.com<mailto:john.frazier at roche.com>>

To: Charles Riley <criley at dpspa.com<mailto:criley at dpspa.com>>

I?m a vendor that sells an H&M staining product, so I?m not going to attempt to give you what the average cost per of a H&E stained slide.

What I will tell you is that when looking at cost per slide you need to calculate more than your consumables. Those are going to be your capital cost. You also need to calculate in your labor cost. Those are gonna be your operational dollars.

The reason why I say that is that some strainers are more efficient than other stainer. Not just in the staining process itself but in the overall maintenance, reagent management and waste control cost.

Remember when using labor dollars you want to calculate that using fully burdens dollars.

Be complete in the way that you calculate your overall cost per slide



John Frazier, MBA, MT(ASCP)

Strategic Workflow Consulting

Roche Diagnostics







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