Residents Save $2M By Eliminating Needless Lab Tests

John Commins, for HealthLeaders Media , October 21, 2013

Impact beyond neurosurgery
Han believes the saving generated by the neurosurgical residents can be replicated throughout hospital care delivery, especially if hospital leaders encourage innovation and problem solving.

"Quality improvement and improving the efficiency of the hospital for every kind of service is an ongoing process. There are always areas to be improved upon and the hospital setting is such a large system and such a big machine that there are bound to be inefficiencies and areas where the quality of care being delivered that could be improved," he says.

"It is an important part of the training process, particularly for residents to get an exposure to this process early and having an eye out for recognizing where there are areas of need for quality improvement and really having the awareness of knowing how to implement a project and monitor the progress and carry it through and seeing its results."

John Commins is a senior editor with HealthLeaders Media.
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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.




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