Originally published by MedicalLab Management and authored by Jane M. Hermansen, MBA, MT(ASCP)
With the sound of a standing refrain, clinical laboratories continue to face pressure from reduced reimbursement and the persistent need to manage (i.e., reduce) costs. Although many laboratory directors come from a technical background, effective laboratory management requires knowledge that extends beyond the technical aspects of running a laboratory and must include an understanding of nuanced financial management to be successful. In this case, financial management includes financial accounting (reporting) for stakeholders, managerial accounting to support decision making, and revenue and expense management to ensure operational stability. When the clinical laboratory is within a hospital, financial management can be further complicated by shared revenue streams and intermingled cost structures. Thus, we lay the focus of this article in that location.