DEPARTMENTAL - SPECIFIC DATA

Department: Laboratory Services

Bed Size Classification

 "A"

 "B"

 "C"

 "D"

 "E"

 "F"

 "G"

< 49 Licensed Beds

 50 - 99 Licensed Beds

 100 - 199 Licensed Beds

200 - 299 Licensed Beds

 300 - 399 Licensed Beds

400 - 499 Licensed Beds

500+ Licensed Beds

Inventory Amount

$19,425 

 $48,368

 $49,907

 $74,889

 $130,902

 $215,752

 $289,599

Typical Inventory Turns

Typically, the Laboratory Departments rarely counts its products, making inventory values and turns somewhat difficult to determine. Never-the-less, the Lab typically reports annual inventory turns of 11.1 - 14.5. These turns translate to on-hand inventory days of 25.2 - 32.9 (calculated as: 365 annual days divided by 11.1 or 14.5 inventory turns).

Targeted Inventory Turns

Laboratory Managers should constantly strive to increase their inventory turns without carrying more inventory. Inventory turn targets of 18 - 24 turns, annually, cannot be realized without full cooperation between Materials Management, Radiology, product manufacturers & distributors and Accounts Payable.

Caveats To Consider

Without a doubt, the Laboratory remains one of the most confusing areas for a Materials Manager to get his / her arms around - supply speaking. This is because the extended cost of increasingly sophisticated Lab capital equipment is being commonly lumped into commodity pricing (reagents, consumable supplies, etc.). This practice helps hospitals spread out the cost of the capital equipment without buying down any equipment itself. It also makes price comparisons for routine commodity products difficult when they are "loaded" with other variables.

Typically, the "lumped", inflated commodity price is no bargain.

GPO's are increasingly recognizing the fact that "unbundling" would enable greater cost savings to be achieved for all the components making up commodity pricing.

Another way that manufacturers make money is by basing the cost/test of equipment-tied reagents on an inflated volume of procedures. The astute Lab Manager needs to be constantly aware where their test volumes are each month, in relation to targeted or equipment-based volumes.

Factors Affecting Inventory & Inventory Turns

Product Lines With The Largest Financial Impact


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