Success Story #2

Hospital B is a non-profit, community-owned, 290-bed acute care center in the Midwest. The chief of pathology and laboratory administrator had tried to start an outreach program many times but experienced several false starts. Their efforts were hampered by the lack of a strategic plan, a dedicated sales staff, and laboratory operations situated for outreach. To help overcome these obstacles, the group called upon Chi to perform a market opportunity assessment. During discussions between the hospital and Chi regarding the proposed activity, the project scope was broadened to include a determination of the market potential for imaging as well as laboratory. After receipt of the study findings, the hospital engaged Chi for a full operations, sales, and marketing engagement for both laboratory and imaging.

Three years later, Hospital B’s laboratory has made great strides:

  1. The profitable laboratory outreach program has two dedicated salespeople, sales management, an outreach manager, and an LIS specialist.
  2. The laboratory has been leaned and new processes established to maximize the output of the laboratory. These activities have aided the effort to move the laboratory from a cost center to a profit center.
  3. A review of reference laboratory work indicated that new testing could be brought on-site, and a business case was made to change reference laboratories.
  4. The outreach program is focused on patient outcomes. Thus, improvements have been made in managed care contracting, billing, registration, timely receipt of results, and the patient’s overall experience. As a result, patient and physician loyalty has increased.
    • Program financials show year-to-year growth:Currently operating at 39 percent margin.
    • Year 1: 34,026 billable tests equating to net revenue of $469,698.
    • Year 2: 220,154 billable tests equating to net revenue of $2,298,071.
    • Year 3: 382,611 billable tests equating to net revenue of $3,654,377.
    • Currently operating at 39 percent margin.
  5. Establishment of a connectivity solution for the physician offices has ensured compliance, more accurate demographic information, and a turnaround time of four hours for standard tests. With an LIS person dedicated solely to outreach, the hospital has the competitive ability to interface with physician office EMRs in a timely manner.
    • Twelve order/results sites with Atlas Laboratoryworks.
    • Over twenty results sites in Atlas Laboratoryworks.
    • Five patient service centers utilizing Atlas Laboratoryworks.
    • Six interfaces with physician office EMRs completed.
    • E-prescribe integrated into Atlas Laboratoryworks function.