Beyond Cost-per-Test

In our previous posts, we explored the evolving role of cost-per-test in laboratory management and delved into its calculations and limitations. Building upon this, let's shift our focus to complementary metrics that can enhance the holistic evaluation of laboratory performance.

The Role of Complementary Metrics

While cost-per-test provides valuable insights into the financial aspects of laboratory operations, it's essential to recognize that it's just one piece of the puzzle. To gain a comprehensive understanding of laboratory performance, we must consider a broader set of metrics that encompass quality, efficiency, and value delivery.

Identifying Complementary Metrics

How can we then identify and qualify potential complementary metrics? We can start this process by evaluating your current Objectives & Key Results (OKRs) and Key Performance Indicators (KPIs), that should already align with your organizational goals and priorities. These will, therefore, clearly highlight metrics that need to be included. Let’s look at some examples of OKRs and KPIs commonly used in laboratories.

OKRs & KPIs

• OKR: Enhance Diagnostic Accuracy
  • Expected Result: Achieve a 5% reduction in false positive rates for high-volume diagnostic tests.
  • KPI: Rate of false positive results per 100 tests performed.
• OKR: Improve Turnaround Time (TAT) for chemistry tests.
  • Expected Result: Reduce the predictable TAT (pTAT) for routine chemistry tests by 15%.
  • KPI: 95th percentile TAT for routine test panels in hours. (pTat? Find out more: pTAT Description)
• OKR: Optimize Resource Utilization
  • Expected Result: Increase equipment uptime to 95%.
  • KPI: Equipment downtime percentage.
• OKR: Enhance Patient Experience and Satisfaction
  • Expected Result: Improve patient satisfaction scores related to test result communication by 10%.
  • KPI: Patient satisfaction survey scores related to test result communication.
• OKR: Foster Continuous Learning and Development
  • Expected Result: Implement a training program for laboratory staff with 100% participation.
  • KPI: Staff training participation rate.

Specific metrics

Building on existing OKRs and KPIs, laboratories can identify complementary metrics that provide additional insights into performance across various dimensions. These complementary metrics should align with strategic objectives and help address specific challenges or opportunities. Here are some examples of complementary metrics that can be extracted from existing OKRs and KPIs:

• Error Rate Trends: Analyze trends in error rates over time to identify areas for quality improvement and training needs.
• Trend Analysis of TAT: Conduct trend analysis of TAT data to identify patterns, bottlenecks, and opportunities for process optimization.
• Equipment Utilization Rate: Calculate the utilization rate of laboratory equipment to optimize resource allocation and maintenance schedules.
• Patient Wait Time: Measure patient wait times in the laboratory waiting area to identify opportunities for streamlining workflows and enhancing patient satisfaction.
• Staff Turnover Rate: Monitor staff turnover rates to assess workforce stability and identify retention strategies to reduce turnover costs.

Integration and Monitoring

Once identified, these complementary metrics can be integrated into the laboratory's performance management framework and monitored alongside existing OKRs and KPIs. Regular tracking and analysis of these metrics provide valuable insights into performance trends, areas of improvement, and opportunities for innovation.

Conclusion

By leveraging existing OKRs and KPIs and identifying complementary metrics, clinical laboratories can gain a more comprehensive understanding of their performance and drive continuous improvement initiatives. Integrating these metrics into the performance management framework enables laboratories to align efforts with strategic objectives, monitor progress effectively, and make data-driven decisions to achieve excellence in laboratory operations. Stay tuned for more insights on laboratory performance evaluation in our next post.