Hospital-owned laboratories play a crucial role in enhancing patient care and hospital operations. They provide long-term strategic value and are essential for clinical excellence and financial sustainability.

William Morice II, M.D., Ph.D., president and chief executive officer of Mayo Clinic Laboratories, shared with Modern Healthcare four ways laboratories propel the success of healthcare organizations.

“Hospital-owned laboratories are indispensable assets,” said Dr. Morice. “It is imperative for hospital leaders to recognize and harness the full potential of laboratories to support the clinical mission of their institution and ensure its financial sustainability in an increasingly challenging healthcare landscape.”

Labs help support success by:

1. Improving patient outcomes: Laboratories inform about 70% of clinical decisions, making them essential for delivering high-quality healthcare.
2. Generating revenue: Robust lab outreach programs can capture additional revenue streams, with Medicare Cost Report data ranking laboratories among the top three drivers of outpatient gross charges for hospitals.
3. Increasing control of operations and expenses: By maintaining control over laboratory diagnostics, hospitals can optimize resource use, protect themselves from unexpected outsourcing costs, and ensure more predictable, cost-effective test ordering.
4. Creating opportunities for partnerships: Hospital-owned labs can form strategic collaborations with other health systems and suppliers to enhance supply chain resilience, create centers of excellence for specialized testing, and help keep healthcare services local.

Read the full article in Modern Healthcare.