DLM (ASCP) Exam
based on expert opinion, stats, historical data, shifts in patient mix, changes
Project Volumes (forecasting stage) medical staff composition, changes in inflation/reimbursement ratws,
expansion/cutbacks, population fluctuations based on economy
1. project volumes
2. convert volumes to revenue
Steps to creating a budget
3. convert volumes into expense requirements
4. Adjust revenue/ expenses as necessary to meet budget margin
gross revenue Rates x Production Unit (Billable test volume)
salaries/wages, reference service, instrument lease, maintenance contracts
Expenses
education/travel
convey the financial status of an organization
Financial Statements 4 main types - income statement, balance sheet statement of changes in eq
and statement of cash flows.
summarizes the operations of an organization with a focus on its revenues,
income statement
expenses, and profitability. contains operational results over a period of tim
noncash charge against earnings on income statement that reflect the "wea
depreciation
tear" on a business' fixed assets (property and equipment). loss of value
salvage value amount received when final disposition occurs at end of the asset's useful l
annual depreciation (initial cost - salvage value)/ useful life
, DLM (ASCP) Exam
Profit net income -expense
cashflow net income + depreciation
Net income divided by total revenues. It measures the amount of total prof
Total Profit Margin
dollar of total revenues.
cost not related to the volume of services delivered (ex. facilities cost, lab
fixed costs
admin, instrument leases, maintenance contracts)
variable cost directly related to the volume of services delivered (ex. supplies, labor cos
technique use to analyze the effects of volume changes on profit. can also
Profit Analysis
used to analyze effects of volume changes on costs.
fixed costs + variable costs
Total Costs
Variable costs = variable cost rate x volume
difference between per unit revenue and per unit variable cost. gives the
contribution margin amount left to cover the fixed costs. after fixed costs are covered what's le
contributes to the profit.
Volume needed to produce zero profit. Revenues cover all accounting cos
accounting breakeven Total Revenue (cost x volume) - Total Variable (variable cost rate x volume)
fixed costs = $0
occurs when all accounting costs plus a profit target are covered
economic breakeven
total revenue - total variable cost- fixed cost = profit
, DLM (ASCP) Exam
used for reference/send out testing. Determine cost of doing a procedure
Surcharge/Cost Plus
add markup factor to get appropriate price.
each test performed is assigned a weight based on cost of performing the
weight value basis
in relation to the procedure.
the number of patients in a hospital on a given day.
patient day factor
(average patient day/ daily census for the year) x 365
tests per patient days test volume/ patient days
revenue per test gross revenue/test volume
test-specific costs (Variable)
direct costs
examples - supplies, instrumentation, reagents, tech time
remain constant
indirect cost examples - lab admin, medical records, house keeping, utilities, etc. (fixed/
variable)
unit costs total direct + indirect expenses
covers all stages in the process of employing staff:
1. recruitment and acquisition costs (pre-employment screen)
Employment cycle 2. training/developmental costs (ongoing)
3. productive/operational periods
4. termination/separation of employee from institution costs
, DLM (ASCP) Exam
institutional labor cost evaluation (employment cycle)
technical evaluation of labor cost - assign labor costs to production activit
that generate expenses. helps manager identify where efforts are being
analyze labor costs
expended and productivity
accounting and budgeting labor analysis - helps monitor staffing levels,
productivity and management performance against budget objectives
preanalytical time specimen collection, prep, instrument
analytical time performing/resulting tests
post analytical time reporting and routine maintenance
total hours productive hours + nonproductive hours
productive hours actual worked hours includes overtime and training
nonproductive hours compensated but not worked. sick leave, vacation, bereavement, etc.
An employee who works full-time, 40 hours per week, 2080 hours per year
Full-time equivalent (FTE) (total number of hours paid/ 2080)
171 or 177 hours - per month
Productivity Measurement workload unit (WLU)/ labor units
time required for handling, testing, recording and reporting, daily and perio
time studies
activities, maintenance and repair, and direct technical supervision.
based on expert opinion, stats, historical data, shifts in patient mix, changes
Project Volumes (forecasting stage) medical staff composition, changes in inflation/reimbursement ratws,
expansion/cutbacks, population fluctuations based on economy
1. project volumes
2. convert volumes to revenue
Steps to creating a budget
3. convert volumes into expense requirements
4. Adjust revenue/ expenses as necessary to meet budget margin
gross revenue Rates x Production Unit (Billable test volume)
salaries/wages, reference service, instrument lease, maintenance contracts
Expenses
education/travel
convey the financial status of an organization
Financial Statements 4 main types - income statement, balance sheet statement of changes in eq
and statement of cash flows.
summarizes the operations of an organization with a focus on its revenues,
income statement
expenses, and profitability. contains operational results over a period of tim
noncash charge against earnings on income statement that reflect the "wea
depreciation
tear" on a business' fixed assets (property and equipment). loss of value
salvage value amount received when final disposition occurs at end of the asset's useful l
annual depreciation (initial cost - salvage value)/ useful life
, DLM (ASCP) Exam
Profit net income -expense
cashflow net income + depreciation
Net income divided by total revenues. It measures the amount of total prof
Total Profit Margin
dollar of total revenues.
cost not related to the volume of services delivered (ex. facilities cost, lab
fixed costs
admin, instrument leases, maintenance contracts)
variable cost directly related to the volume of services delivered (ex. supplies, labor cos
technique use to analyze the effects of volume changes on profit. can also
Profit Analysis
used to analyze effects of volume changes on costs.
fixed costs + variable costs
Total Costs
Variable costs = variable cost rate x volume
difference between per unit revenue and per unit variable cost. gives the
contribution margin amount left to cover the fixed costs. after fixed costs are covered what's le
contributes to the profit.
Volume needed to produce zero profit. Revenues cover all accounting cos
accounting breakeven Total Revenue (cost x volume) - Total Variable (variable cost rate x volume)
fixed costs = $0
occurs when all accounting costs plus a profit target are covered
economic breakeven
total revenue - total variable cost- fixed cost = profit
, DLM (ASCP) Exam
used for reference/send out testing. Determine cost of doing a procedure
Surcharge/Cost Plus
add markup factor to get appropriate price.
each test performed is assigned a weight based on cost of performing the
weight value basis
in relation to the procedure.
the number of patients in a hospital on a given day.
patient day factor
(average patient day/ daily census for the year) x 365
tests per patient days test volume/ patient days
revenue per test gross revenue/test volume
test-specific costs (Variable)
direct costs
examples - supplies, instrumentation, reagents, tech time
remain constant
indirect cost examples - lab admin, medical records, house keeping, utilities, etc. (fixed/
variable)
unit costs total direct + indirect expenses
covers all stages in the process of employing staff:
1. recruitment and acquisition costs (pre-employment screen)
Employment cycle 2. training/developmental costs (ongoing)
3. productive/operational periods
4. termination/separation of employee from institution costs
, DLM (ASCP) Exam
institutional labor cost evaluation (employment cycle)
technical evaluation of labor cost - assign labor costs to production activit
that generate expenses. helps manager identify where efforts are being
analyze labor costs
expended and productivity
accounting and budgeting labor analysis - helps monitor staffing levels,
productivity and management performance against budget objectives
preanalytical time specimen collection, prep, instrument
analytical time performing/resulting tests
post analytical time reporting and routine maintenance
total hours productive hours + nonproductive hours
productive hours actual worked hours includes overtime and training
nonproductive hours compensated but not worked. sick leave, vacation, bereavement, etc.
An employee who works full-time, 40 hours per week, 2080 hours per year
Full-time equivalent (FTE) (total number of hours paid/ 2080)
171 or 177 hours - per month
Productivity Measurement workload unit (WLU)/ labor units
time required for handling, testing, recording and reporting, daily and perio
time studies
activities, maintenance and repair, and direct technical supervision.
