SPECIALIZED SOFTWARE

Customized, user-friendly software is offered directly to those health care clients wishing to have the power to produce their own analyses and reports.  CLINICAL LABORATORY SOLUTION™  is the original decision support software developed over 17 years of use and refinement in clinical laboratories, both by users and our consulting team.  It is unique in that it is part of a full system of services that have been tried and verified across multiple institutions.  We have maintained a full data base of the models created by SOLUTIONand can, therefore, quickly identify cost parameters that are out of expected ranges to pinpoint areas for potential improvement and new best practices. SOLUTION determines actual cost per procedure, broken down by fixed, variable, and indirect cost; determines break-even points for prepaid. fee-for-service, and combined services; defines contribution margin for each procedure; and allows for "what-if" modeling of various mixes of prepaid and fee-for-service procedures, and changes in any of 32 cost parameters.

The information provided by SOLUTION allows the astute lab manager to:

bullet Determine the costs of all services provided.
bullet Analyze the "make or buy" decision.
bullet Either manually or via CLINICAL LABORATORY PRICE develop fiscally responsible pricing strategies.
bullet Attack costs systematically, efficiently, and effectively.
bullet Model the effects of cost reduction strategies.
bullet Model acquisition feasibilities.
bullet Model the costs of new services.
bullet Develop revenue enhancement strategies.
bullet Determine profitable approaches to service bids whether in capitated HMOs, PPOs, and Grants.
bullet Increase laboratory profitability!

The previous list is only an abbreviated outline of possibilities.  The user is limited only by his/her imagination and creativity in the use of SOLUTION™ in improving the bottom line.

EASE OF USE:

How can financial modeling and costing of laboratory tests be so easy when it has always been so hard?

Because SOLUTION "understands" the logic of batch size, standard curve stability. proficiency testing, QC testing, and varying instrumentation/methodology costs of testing.

SOLUTION employs the micro logic of accounting for all the costs laboratorians could identify (like we used to attempt manually) and matches this with what we actually spend in a given cost center.

SOLUTION uses instrumentation factors, labor factors, and economies of scale simultaneously to calculate cost/test.

SOLUTION lets you change any parameter of cost in an income statement to model the effect on the cost/test.  The power of "what if?" analyses!

SIMPLE TWO STEP PROCESS:

What does the user have to do to build a model?  Do we still have to enter each cost factor for each test and spend months or more and still be unable to easily perform "what if" analyses?

SOLUTION requires only two steps on a macro level and the program then processes the data to create the micro level information.  The user simply answers menu driven questions as to total expenses in a given cost center and inputs the number of occurrences of each of the procedures (tests) for that cost center.  A cost center could be the entire lab, a single section (Chemistry or Hematology or the Automated Core testing area for example) or even a shift for the full lab or just within a section.

Step 1: Simply respond to questions such as:

TOTAL REVENUES    $15,000,000
TOTAL SALARIES     $  6,500,000
TOTAL REAGENTS    $ 3,600,000
TOTAL LEASE COSTS $ 327,000
and any of up to 28 more cost parameters.

Step 2: Then provide (manually or automatically via

SOLUTION software interface the numbers of tests:

80007     25,000
85025     14,000
81000     31,000
and any of up to 3,500+ more procedures in your data base.

CLINICAL LABORATORY SOLUTION responds with full individual cost/test data broken into variable, fixed and total both for direct only and with the indirect allocations.  Break-even analyses and Bar charts are produced simultaneously.

The user then has the critical information needed to perform the "make or buy?" decision, to develop competitive but profitable bids for outreach services and or HMO contracts, to develop an effective pricing strategy, to evaluate financially the potential of merger/consolidation activities, to predict the costs of new services and most importantly, increase the profitability of your laboratory!

CLIENT COMMENTS: 

"We now have a whole new way of looking at our operation.  Hill and Solution™ have been the catalyst for creating a direction that will lead us to a more profitable and efficient operation.  Only with more disciplined financial management will we be able to direct or ongoing success."

Jack Garner, Director Medical Science Laboratories - Fresno

"We found $87,000.00 in the first day of the process.  The annual total in savings will be $250,000.00!"

Walter Arnold, CFO  Detroit Medical Center - Healthcare Centers

"The support for SOLUTION is great -- accessible and very helpful"

Renee’ Halstead, Laboratory Director Southern West Virginia Clinic - Beckley

"0ur competition is formidable.  Now we have a tool to give us better knowledge of how to compete profitably.  We will be better able to determine our real contribution to margin for the entire medical center."

Dr. Michael Maffetone, Vice President     Rush-Presbyterian-St. Luke’s Medical Center - Chicago

"We finally have a usable tool that gives us a consistent handle on our costs and, most importantly, allows us to set price on a cost+basis.  With Solution™, I was able to justify our aggressive outreach laboratory t services program to administration.   Our ability to aggressively but accurately price via Solution™ has made our outreach efforts extremely successful.  We now know and can document our real margins"

Lynell Vallier, Laboratory Director and Compliance Officer Boulder Community Hospital

"At first we thought the model costs were high. Our analysis proved the model was right on!  We had not considered all the costs.  The program has already paid for itself many times over and the consulting advice was very valuable."

Douglas Anderson, Business Manager Wheeling Clinic

"The real power of the SOLUTION system comes after accurate costs are determined and you begin to optimize revenues using cost-based pricing using the PRICE module.  The incidental consulting services have proved invaluable in uncovering problems that have led to a real turn-around."

Joan Albers, Executive Director Community Hospitals of Central California