19.07.17 lab budgeting Flashcards Preview

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Flashcards in 19.07.17 lab budgeting Deck (12)
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1
Q

Issues facing current NHS budget

A
  • Ageing population

- Cuts in budget

2
Q

Three main options for decreasing a lab budget

A

1) Genetics/molecular pathology service integration
2) Reduction of staff costs
3) Reduction of non-staff costs

3
Q

Considerations when decreasing a lab budget

A

Ensuring the quality of results and service provided are not compromised

4
Q

How would service integration reduce costs

A
  • Cross-training staff, sharing equipment/ reagents

- LIMS systems that can cross talk

5
Q

Issues with service integration

A
  • Physical space requirements
  • LIMS requirements require substantial financial investment
  • Sample storage and transport
6
Q

What percentage of a lab budge does staff cost comprise?

A

70-80% (also have to pay NI contributions, usually 20% more than staff member sees)

7
Q

Examples of reducing staff costs

A
  • Service integration, staff cross training
  • Evaluate skill levels required (redistribute accordingly, more lower bands to alleviate time of higher bands)
  • Not replacing staff wastage (retirement, leave eg maternity)
  • Restructure to increase efficiency and productivity
  • Automation of wet lab processes
  • bioinformatic solutions to automate dry lab process (e.g. report generation through Genomic England CIP-API system)
8
Q

Examples of reducing non-staff costs

A
  • Finding cheaper suppliers, re-negotiating prices with existing suppliers (including maintenance contracts)
  • long term , large scale orders get bigger discounts, but risk buying too much (if consumable is no longer used)
  • Purchasing consortia, collaborate with other services. Increase volume of orders to increase discount.
  • Stop offering a specific test (e.g. if costly, labour intensive) or replace with cheaper/efficient test. e.g. karyotyping vs QF-PCR, CNV calling via NGS rather than MLPA
  • Reducing number of samples sent out for testing
  • Eliminate waste by reducing failure/repeat rate (optimisation), reduce sample volumes, batch testing (can impact TAT)
  • Inhouse assays vs commercial assays (cheaper but require extensive validation)
  • Reduce paper/stationary
  • Estate costs (rent/utilities/maintenance) not possible if located in a hospital.
9
Q

Main ways to generate income

A
  • Increase prices (still need to be competitive to other labs, not relevant as test directory will set a tariff)
  • Additional charge for private testing
  • Develop new services (initial investment will be needed)
  • Collaboration with research/charity may allow for grant applications
  • Collaborate with supplies/pharma in return for reduced rate of goods
  • Government grants
10
Q

How is a lab’s budget determined

A

Previous year’s spending

11
Q

Difference between cost and price

A
  • Cost= what it actually costs the department to perform a test in terms of consumables
  • Price= what the lab charges (includes staff time and maintenance)
12
Q

When do you have to write a business plan

A
  • If changes to services are not cost neutral.

- Service users need to be informed so they have the opportunity to move elsewhere

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