WMLM1321 - CME/CMLE - LMU 19 (Fundamentals) Financial - Preparing a Budget for Pathology and Laboratory Services-WMLM1321

WMLM1321 - Pre-Reading Assignment 2

Pdf Summary

The document discusses the importance of preparing a sound annual operating budget for a clinical laboratory to ensure financial health and support core strategies of quality and service standards for patients. It emphasizes the need for gathering internal and external information, engaging the supervisory team, and anticipating revenue and test volume changes when budgeting. The process involves meticulous scrutiny of expenses, including salaries, supplies, and other categories, to achieve a positive operating return. The end goal is to calculate a percent margin that aligns with targeted financial goals, requiring iterative adjustments throughout the budgeting process. Engaging the supervisory team and conducting productivity reviews are key steps to ensure a well-informed and effective budget preparation. The document also highlights the challenges in predicting new business volume growth and the importance of understanding payment methodologies to control costs and improve efficiencies. Lastly, it underscores the need for laboratory operations directors to have a deep understanding of their lab operations to prepare a budget that optimally supports patient care.

Keywords

annual operating budget

clinical laboratory

financial health

quality standards

service standards

budget preparation

revenue changes

test volume changes

expense scrutiny

operating return