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Chapter 3 : Relevant Economic and Business Concepts

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Abstract:

This chapter defines relevant economic issues that influence the delivery of healthcare services and their significance to the practice of laboratory medicine. It outlines the key concepts and principles that drive the business decisions faced by laboratory directors, managers, pathologists, and hospital administrators. The chapter further demonstrates the relationship between global economy concerns and changes in healthcare policies. It identifies marketing, sales, and customer service tools used to formulate a business plan to respond to the service requirements and economic needs of the healthcare delivery system. Both laboratories and manufacturers have developed new products and services to meet the changing market needs, targeting new markets and focusing on value-added customer service strategies to outperform the competition and to meet and exceed the customer’s expectations. Today, healthcare providers realize that the patient is the client and consumer. They now recognize the importance of including the patient in the development of the care plan and the decision-making process. The increasing importance of access to the most advanced technology must be tempered by the ethical and humane concerns for the use of laboratory information. The efficacy, safety, cost-effectiveness, and clinical outcomes of diagnostic and treatment strategies link utilization of resources and economics.

Citation: Mercer R, Harris A. 2014. Relevant Economic and Business Concepts, p 43-70. In Garcia L (ed), Clinical Laboratory Management, Second Edition. ASM Press, Washington, DC. doi: 10.1128/9781555817282.ch3

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Figures

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Figure 3.1

Strategic business planning. The four key strategies (pricing, production, marketing, and service) serve as the cornerstones in the framework for the development of a successful business plan. The strategies must be carefully weighed against the influences of the four variable environmental factors and the market research information on consumer needs for the products and services. doi:10.1128/9781555817282.ch3.f1

Citation: Mercer R, Harris A. 2014. Relevant Economic and Business Concepts, p 43-70. In Garcia L (ed), Clinical Laboratory Management, Second Edition. ASM Press, Washington, DC. doi: 10.1128/9781555817282.ch3
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Figure 3.2

The four stages of the economy. The economy is cyclic and progresses through four stages. There are cycles when the economic environment supports the move from recession directly to recovery, bypassing an economic depression. doi:10.1128/9781555817282.ch3.f2

Citation: Mercer R, Harris A. 2014. Relevant Economic and Business Concepts, p 43-70. In Garcia L (ed), Clinical Laboratory Management, Second Edition. ASM Press, Washington, DC. doi: 10.1128/9781555817282.ch3
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Tables

Generic image for table
Table 3.1

Change drivers during the 1990s

See reference .

Clinical Laboratory Improvement Amendments of 1988.

Citation: Mercer R, Harris A. 2014. Relevant Economic and Business Concepts, p 43-70. In Garcia L (ed), Clinical Laboratory Management, Second Edition. ASM Press, Washington, DC. doi: 10.1128/9781555817282.ch3
Generic image for table
Table 3.2

Industry trends during the past decade

Citation: Mercer R, Harris A. 2014. Relevant Economic and Business Concepts, p 43-70. In Garcia L (ed), Clinical Laboratory Management, Second Edition. ASM Press, Washington, DC. doi: 10.1128/9781555817282.ch3
Generic image for table
Table 3.3

Emerging network model

See reference .

Citation: Mercer R, Harris A. 2014. Relevant Economic and Business Concepts, p 43-70. In Garcia L (ed), Clinical Laboratory Management, Second Edition. ASM Press, Washington, DC. doi: 10.1128/9781555817282.ch3
Generic image for table
Table 3.4

Commonly used terms in cost and price analysis

See reference .

Citation: Mercer R, Harris A. 2014. Relevant Economic and Business Concepts, p 43-70. In Garcia L (ed), Clinical Laboratory Management, Second Edition. ASM Press, Washington, DC. doi: 10.1128/9781555817282.ch3
Generic image for table
Table 3.5

Tools and techniques used in developing pricing strategies

Citation: Mercer R, Harris A. 2014. Relevant Economic and Business Concepts, p 43-70. In Garcia L (ed), Clinical Laboratory Management, Second Edition. ASM Press, Washington, DC. doi: 10.1128/9781555817282.ch3
Generic image for table
Table 3.6

Buying motivators (hot buttons)

Citation: Mercer R, Harris A. 2014. Relevant Economic and Business Concepts, p 43-70. In Garcia L (ed), Clinical Laboratory Management, Second Edition. ASM Press, Washington, DC. doi: 10.1128/9781555817282.ch3
Generic image for table
Table 3.7

Target market segments for clinical laboratories

Citation: Mercer R, Harris A. 2014. Relevant Economic and Business Concepts, p 43-70. In Garcia L (ed), Clinical Laboratory Management, Second Edition. ASM Press, Washington, DC. doi: 10.1128/9781555817282.ch3
Generic image for table
Table 3.8

Call preparation and rehearsal

Citation: Mercer R, Harris A. 2014. Relevant Economic and Business Concepts, p 43-70. In Garcia L (ed), Clinical Laboratory Management, Second Edition. ASM Press, Washington, DC. doi: 10.1128/9781555817282.ch3
Generic image for table
Table 3.9

The cold call: information gathering

Citation: Mercer R, Harris A. 2014. Relevant Economic and Business Concepts, p 43-70. In Garcia L (ed), Clinical Laboratory Management, Second Edition. ASM Press, Washington, DC. doi: 10.1128/9781555817282.ch3
Generic image for table
Table 3.10

Marketing publications and advertising needs

Citation: Mercer R, Harris A. 2014. Relevant Economic and Business Concepts, p 43-70. In Garcia L (ed), Clinical Laboratory Management, Second Edition. ASM Press, Washington, DC. doi: 10.1128/9781555817282.ch3
Generic image for table
Table 3.11

Who is the customer?

See reference

Citation: Mercer R, Harris A. 2014. Relevant Economic and Business Concepts, p 43-70. In Garcia L (ed), Clinical Laboratory Management, Second Edition. ASM Press, Washington, DC. doi: 10.1128/9781555817282.ch3
Generic image for table
Table 3.12

Customer attitudes

See reference .

Citation: Mercer R, Harris A. 2014. Relevant Economic and Business Concepts, p 43-70. In Garcia L (ed), Clinical Laboratory Management, Second Edition. ASM Press, Washington, DC. doi: 10.1128/9781555817282.ch3

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