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Chapter 3 : Relevant Economic and Business Concepts

Authors: Roxanne Mercer, Ann L. Harris
Content Type: Reference
Publication Year: 2014

Category: Clinical Microbiology

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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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Relevant Economic and Business Concepts
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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
/content/10.1128/9781555817282.chap3.fig3-1
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

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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

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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

Relevant Economic and Business Concepts
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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
/content/10.1128/9781555817282.chap3.tab3-1
Table 3.1

Change drivers during the 1990s

See reference .

Clinical Laboratory Improvement Amendments of 1988.

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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
/content/10.1128/9781555817282.chap3.tab3-2
Table 3.2

Industry trends during the past decade

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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
/content/10.1128/9781555817282.chap3.tab3-3
Table 3.3

Emerging network model

See reference .

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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
/content/10.1128/9781555817282.chap3.tab3-4
Table 3.4

Commonly used terms in cost and price analysis

See reference .

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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
/content/10.1128/9781555817282.chap3.tab3-5
Table 3.5

Tools and techniques used in developing pricing strategies

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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
/content/10.1128/9781555817282.chap3.tab3-6
Table 3.6

Buying motivators (hot buttons)

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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
/content/10.1128/9781555817282.chap3.tab3-7
Table 3.7

Target market segments for clinical laboratories

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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
/content/10.1128/9781555817282.chap3.tab3-8
Table 3.8

Call preparation and rehearsal

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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
/content/10.1128/9781555817282.chap3.tab3-9
Table 3.9

The cold call: information gathering

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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
/content/10.1128/9781555817282.chap3.tab3-10
Table 3.10

Marketing publications and advertising needs

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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
/content/10.1128/9781555817282.chap3.tab3-11
Table 3.11

Who is the customer?

See reference

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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
/content/10.1128/9781555817282.chap3.tab3-12
Table 3.12

Customer attitudes

See reference .

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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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