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Cost Benefit Ratios of Various Tests in Pathology
Cost Benefit Ratios of Various Tests in Pathology
Objectives
To find out the Cost of some particular tests performed in
pathology lab.
To calculate the Revenue generated from those Tests.
To analyze the Cost Benefit Ratio of those particular Tests.
Suggesting measures on cutting down the cost & increasing
revenue generation.
Methodology
The Methodology used in this Project is Observation for one month of
various procedures of the tests and data collection for six months, regarding
cost of each test, cost of kits, electricity, consumables, etc.
The Information thus collected was analyzed i.e. the cost incurred by
each test to the Hospital is compared against the Revenue Generated by that
particular Test.
The Management of the Hospital was interested in calculating Cost
Benefit Ratio of some particular Tests only, so only those Tests have been
taken up in this Project.
Pathologist (MD)
Sr.Technicians
Technicians
Ward Boy
Fixed Cost
Fixed Costs are considered to be the elements of the costs, which do
not vary with the volume of production. These costs are required to be
incurred regardless of the level of output and sales. Depreciation, property,
taxes, Interest, Insurance Premium, Rent, Supervisory and Management
Salaries are typical examples of Fixed Costs.
i)
ii)
iii)
Salary of the Staff The Staff Salary is one of the Fixed Cost
As we have been calculating cost of some specific tests only
so the salaries have been taken as-:
Total Salary of the Staff
Average No. of Tests performed in Pathology in a month
Total Salary
35505
10,800
= Rs 3.28 / Test
iv)
Variable Costs
Variable Costs are those, which vary directly with the actual volume
of production or sale. This makes it clear that the Variable Costs per unit
of output are found constant and with a change in the output, we find a
proportionate change in the Total Variable Cost.
It generally includes-:
i)
The costs of the kits used for various tests differ with the supplier of
the kits and the methods of doing the tests and also with the bond with
the supplier of the kits.
ii)
Electricity Charges-
AC 4
Tubelight
Fan
Refridgerator
Cell Dyn
BRIO Elisa test
Sirio Auto
Tulip Quantimate
EMS (ECS)
Bayer Biochemistry Analyser
Automatic Immunoassay Analyser
Sereological Water Bath
Axsym
Lab Centrifuge
Blood Bag Tube Sealer
iii)
Cost of Consumables-:
Vaccutainers
Rs 5.80 / Pc
Glass Slides
Cover slips
Syringes
iv) Miscellaneous-:
Detergents
Diluents
Stationary
10
Calculations
Calculating Fixed Costs of the Tests
Salary:
35505 / 10800 = Rs 3.28 Per Test
Calculating Variable Costs of the Tests
Electricity:
8000 / 10800 = Rs. 0.74 Per Test
Cost of Kits:
It depends on the Particular test.
Consumables + Miscellaneous:
=Rs 3.15 Per Test
11
2.LH
Kits Cost Rs 50 / Test
Other Costs Salary / test + electricity + Consumables +Miscel.
=Rs 12.97/ Test
Total Cost Rs 62.97/Revenue Rs 350/Cost / Benefit 0.179
3.Prolactin
Kits Cost Rs 52.8 / Test
Other Costs Salary / test + electricity + Consumables +Miscel.
=Rs 12.97/ Test
Total Cost Rs 65.77/Revenue Rs 370/Cost / Benefit 0.178
4.T3
Kits Cost Rs 45 / Test
Other Costs Salary / test + electricity + Consumables +Miscel.
=Rs 12.97/ Test
Total Cost Rs 57.97/-
12
5.T4
Kits Cost Rs 56.2 / Test
Other Costs Salary / test + electricity + Consumables +Miscel.
=Rs 12.97/ Test
Total Cost Rs 69.17/Revenue Rs 300/Cost / Benefit 0.231
6.TSH
Kits Cost Rs 36 / Test
Other Costs Salary / test + electricity + Consumables +Miscel.
=Rs 12.97/ Test
Total Cost Rs 48.97/Revenue Rs 300/Cost / Benefit 0.163
7.PSA
Kits Cost Rs 168/ Test
Other Costs Salary / test + electricity + Consumables +Miscel.
=Rs 12.97/ Test
Total Cost Rs 180.97/Revenue Rs 450/Cost / Benefit 0.402
8.SGOT
Kits Cost Rs 11.97 / Test
Other Costs Salary / test + electricity + Consumables +Miscel.
=Rs 12.97/ Test
Institute of Management Studies
13
9.SGPT
Kits Cost Rs 11.97 / Test
Other Costs Salary / test + electricity + Consumables +Miscel.
=Rs 12.97/ Test
Total Cost Rs 24.94/Revenue Rs 90/Cost / Benefit 0.277
10.HIV
Kits Cost Rs 37.44 / Test
Other Costs Salary / test + electricity + Consumables +Miscel.
=Rs 12.97/ Test
Total Cost Rs 50.41/Revenue Rs 260/Cost / Benefit 0.193
11.HbsAg
Kits Cost Rs 19.2 / Test
Other Costs Salary / test + electricity + Consumables +Miscel.
=Rs 12.97/ Test
Total Cost Rs 32.17/Revenue Rs 160/Cost / Benefit 0.201
12.CBC
Kits Cost Rs 20 / Test
Other Costs Salary / test + electricity + Consumables +Miscel.
=Rs 12.97/ Test
Total Cost Rs 32.97/Revenue Rs 70/Institute of Management Studies
14
13.Blood Donation
Kits Cost Rs 28.32 / Test
Other Costs Salary / test + electricity + Consumables +Miscel.
=Rs 12.97/ Test + Rs 34/- Per Bag
Total Cost Rs 75.29/Revenue Rs 650/Cost / Benefit 0.116
14.VDRL
Kits Cost Rs 11 / Test
Other Costs Salary / test + electricity + Consumables +Miscel.
=Rs 12.97/ Test
Total Cost Rs 23.97/Revenue Rs 90/Cost / Benefit 0.267
15.Lipid Profile
Kits Cost Rs 42.91 / Test
Other Costs Salary / test + electricity + Consumables +Miscel.
=Rs 12.97/ Test
Total Cost Rs 55.88/Revenue Rs 425/Cost / Benefit 0.131
16.Cholesterol
Kits Cost Rs 11.98 / Test
Other Costs Salary / test + electricity + Consumables +Miscel.
=Rs 12.97/ Test
Total Cost Rs 24.95/Revenue Rs 90/Institute of Management Studies
15
17.HDL
Kits Cost Rs 9.93 / Test
Other Costs Salary / test + electricity + Consumables +Miscel.
=Rs 12.97/ Test
Total Cost Rs 22.9/Revenue Rs 120/Cost / Benefit 0.191
18.Triglyceride
Kits Cost Rs 26.87 / Test
Other Costs Salary / test + electricity + Consumables +Miscel.
=Rs 12.97/ Test
Total Cost Rs 39.84/Revenue Rs 125/Cost / Benefit 0.318
20.Serum Electrolytes
Kits Cost Rs 30 / Test
Other Costs Salary / test + electricity + Consumables +Miscel.
Institute of Management Studies
16
21.Na+
Kits Cost Rs 28 / Test
Other Costs Salary / test + electricity + Consumables +Miscel.
=Rs 12.97/ Test
Total Cost Rs 40.97/Revenue Rs 90/Cost / Benefit 0.455
22.K+
Kits Cost Rs 26 / Test
Other Costs Salary / test + electricity + Consumables +Miscel.
=Rs 12.97/ Test
Total Cost Rs 38.97/Revenue Rs 90/Cost / Benefit 0.433
23.CPK
Kits Cost Rs 45 / Test
Other Costs Salary / test + electricity + Consumables +Miscel.
=Rs 12.97/ Test
Total Cost Rs 57.97/Revenue Rs 275/Cost / Benefit 0.210
24.CPKMb
Kits Cost Rs 65 / Test
Other Costs Salary / test + electricity + Consumables +Miscel.
Institute of Management Studies
17
25.Hb
Kits Cost Rs 16 / Test
Other Costs Salary / test + electricity + Consumables +Miscel.
=Rs 12.97/ Test
Total Cost Rs 28.97/Revenue Rs 40/Cost / Benefit 0.724
26.T&D
Kits Cost Rs 17 / Test
Other Costs Salary / test + electricity + Consumables +Miscel.
=Rs 12.97/ Test
Total Cost Rs 29.97/Revenue Rs 60/Cost / Benefit 0.499
18
Findings
Cost and Revenue of various Tests for a period of six months
(September05 to February06)
1. FSH
i. No. of Tests 42
ii. Costs of Tests Rs 2,644.74
iii. Revenue Generated Rs 14,700
2. LH
i. No. of Tests 36
ii. Costs of Tests Rs 2,266.92
iii. Revenue Generated Rs 12,600
3. Prolactin
i. No. of Tests 48
ii. Costs of Tests Rs 3,156.96
iii. Revenue Generated Rs 17,760
4. T3
i. No. of Tests 192
ii. Costs of Tests Rs 11,130.24
iii. Revenue Generated Rs 48,000
5. T4
i. No. of Tests 264
19
6. TSH
i. No. of Tests 402
ii. Costs of Tests Rs 19,685.94
iii. Revenue Generated Rs 1,20,600
7. PSA
i. No. of Tests 30
ii. Costs of Tests Rs 5,429.1
iii. Revenue Generated Rs 13,500
8. SGOT
i. No. of Tests 186
ii. Costs of Tests Rs 4,638.84
iii. Revenue Generated Rs 16,740
9. SGPT
i. No. of Tests 1026
ii. Costs of Tests Rs 25,588.44
iii. Revenue Generated Rs 92,340
10.HIV
i. No. of Tests 120
ii. Costs of Tests Rs 6,049.2
iii. Revenue Generated Rs 31,200
11.HBs Ag
i. No. of Tests 96
ii. Costs of Tests Rs 3,088.32
Institute of Management Studies
20
12.CBC
i. No. of Tests 1248
ii. Costs of Tests Rs 41,146.56
iii. Revenue Generated Rs 87,360
13.Blood Donations
i. No. of Tests 1212
ii. Costs of Tests Rs 91,251.48
iii. Revenue Generated Rs 7,87,800
14.VDRL
i. No. of Tests 6
ii. Costs of Tests Rs 143.82
iii. Revenue Generated Rs 540
15.Lipid Profile
i. No. of Tests 234
ii. Costs of Tests Rs 13,075.92
iii. Revenue Generated Rs 99,450
16.Cholesterol
i. No. of Tests 18
ii. Costs of Tests Rs 449.1
iii. Revenue Generated Rs 1,620
17.HDL
i. No. of Tests 72
ii. Costs of Tests Rs 1,648.8
iii. Revenue Generated Rs 8.640
Institute of Management Studies
21
18.Triglyceride
i. No. of Tests 30
ii. Costs of Tests Rs 1,195.2
iii. Revenue Generated Rs 3750
19.Alpha Feto Protein
i. No. of Tests 6
ii. Costs of Tests Rs 617.82
iii. Revenue Generated Rs 2,700
20.Serum Electrolyte
i. No. of Tests 306
ii. Costs of Tests Rs 13,148.82
iii. Revenue Generated Rs 67,320
21.Na+
i. No. of Tests 714
ii. Costs of Tests Rs 29,252.58
iii. Revenue Generated Rs 64,260
22.K+
i. No. of Tests 780
ii. Costs of Tests Rs 30,396.6
iii. Revenue Generated Rs 70,200
23.CPK
i. No. of Tests 12
ii. Costs of Tests Rs 695.64
Institute of Management Studies
22
24.CPKMb
i. No. of Tests 18
ii. Costs of Tests Rs 1,403.46
iii. Revenue Generated Rs 6,750
25.Hb
i. No. of Tests 2,478
ii. Costs of Tests Rs 71,787.66
iii. Revenue Generated Rs 99,120
26.T&D
i. No. of Tests 2442
ii. Costs of Tests Rs 73,186.74
iii. Revenue Generated Rs 1,46,520
23
Graphical Representation
Cost
Revenue
Tests
SGPT
CBC
Na+
K+
1
2
3
4
Institute of Management Studies
24
Hb
T&D
Blood
5
6
7
Graphical Representation
80000
60000
Cost
Revenue
40000
20000
0
Tests
Lipid Pro
TSH
S.Elec
T3
T4
1
2
3
4
5
25
Pre Op P
Graphical Representation
35000
30000
25000
Amount
20000
Cost
Revenue
15000
10000
5000
0
1
Tests
FSH
LH
Prolactin
HIV
1
2
3
4
26
HbsAg
SGOT
PSA
5
6
7
Graphical Representation
Cost
Revenue
Tests
HDL
Alph F P
CPK
CPKMb
VDRL
Cholest
1
2
3
4
5
6
27
Trigly
Recommendations
Sample collection Room must be widened to decrease congestion and
blockage by the people.
Records even of previous months must be available with the
Pathology Department.
The Computerized Print from machines must be attached with the lab
Reports to avoid human error in writing reports.
The Disposal of Sample Liquids must be away from the main lab to
avoid Air Bourne Infection.
Soothing Music must be there in Blood Collection Room.
Tie up with other Clinics to get more Tests and Profit: The Hospital
should Tie up with Clinics and Private Practitioners and ask them to
refer cases in Gokuldas Pathology. This will help the Hospital to
utilize the equipments to their fullest.
Due to Profit Margin among various Tests Hospital may also afford to
give concession to very poor patients.
Bulk purchases of kits with other Hospitals may significantly reduce
the cost of the Tests.
28
Conclusion
Pathology is one of the major Revenue generating Department of the
Hospital. It is very efficient in working and all the latest technologies are
available in the Laboratory.
Measures are also taken to prevent any kind of Cross Infection. The staff
is also competent in their work.
From this Analysis of various major tests in Pathology, we have taken out
the Cost Benefit Ratio. It is also evident that as the number of Tests increase,
cost per Test to the Hospital decreases resulting in more Profit margins per
Test.
As the Cost Benefit Ratio of all the Tests is Less then one, so each and
every Test is bringing Profit of varying degree to the Hospital.
And on the basis of one month observation, various recommendations
were given to improve efficiency and optimize the benefit from various tests
29
30
Bibliography
Books referred:
BM Sakharkar: Health and Hospital Administration
Francis :Hospital Planning and Management
Websites visited:
www.expresshealthcaremanagement.com
www.google.com
31
Appendix
TYPES OF TESTS OBSERVED IN PATHOLOGY
S.No
Name Of Test
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
Amylase
ABO Rh
Alk.Phos
ABG
Albumin
APTT
ADA
Anaemia
Ascitic fluid
ASO Titre
Blood Grp.
BTCT
Billirubin
BUN
Blood sugar
Blood Bags
Creatinine
Cholesterol
CBC
CSF
CRP
Ca+
Cross Match
CPK MB
Chloride
Culture sensitive
ESR
Electrolyte
Electrophoresis
FSH
FNAC lung
G6PD
Haemocystin
Hb
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
77
78
79
80
81
82
83
84
Herpes Virus
LDH
LFT
Ig for TB
Ketone
MP by QBC
MT
MCV
Platelets
PCV
Protein
PT
Pap Smear
Plural Fluid
Pregnancy test
PSA
Prolactin
RBC
Renal profile
RA Factor
Rectic count
Semen
SGPT&SGOT
Stool
Sputum-AFB
Synovial Fluid
T&D
Thyroid
TCBC
Triglyceride
TropT
Toxic Grnules
TDMP
Urine
Testesteron
HDL
LDL
VLDL
MCH
MCHC
Toxic Granules
Glycosynate
32
35
36
37
38
HbsAg
HIV
Histopathin
HCV
73
74
75
76
Uterus-HPE
VDRL&Widal
Health Checkup
Band Cell
33