Results
Financial benefits from eliminating redundancies
In order to deliver on Labcorp’s proposed solution of one centralized core laboratory and eight rapid response laboratories, Labcorp developed and executed a project plan in under one year. The result has been savings of more than $5 million per year in the first two years by optimizing labor, eliminating redundancies and improving overall quality. The health system has also achieved substantial savings on capital expenses.
Tailoring a hospital managed services agreement
Through a Hospital Managed Services Agreement, the health system maintains ownership of its laboratory while Labcorp provides managerial support for lab services, assists in process standardization and efficiencies, and helps the health system deliver high quality, cost-effective lab services.
A joint governance process including Labcorp and health system stakeholders oversees operations as well as test utilization. Using real-time data from Labcorp’s analytical systems and software, the joint governance committee can track productivity, turnaround time, blood banking and more through dashboard views that are now critical to the health system.
Delivering patient satisfaction and improving access
At the heart of everything a health system—and Labcorp—does is patient satisfaction and quality of care. Patients have been pleased with lower pricing on lab services and easier access to Labcorp’s numerous patient service center locations, and the data is reflected in patient satisfaction scores at both the health system and Labcorp’s service centers in the region.
Collaboration accelerates COVID-19 response
The health system was able to reap the benefits of a Labcorp partnership when the COVID-19 pandemic hit. The health system was up and running with COVID-19 testing well before its competitors due to access to equipment and materials through Labcorp. In fact, Labcorp was able to supply equipment to ramp up COVID-19 testing at the health system almost immediately. The staff’s relatively large size after the consolidation of certain laboratory elements helped to create more flexibility from a human resource standpoint. The health system also outsourced all nonessential molecular work to Labcorp to help lower the pressure on the core laboratory. This shift helped maintain the efficiency needed to deliver test results quickly, with little disruption to the highly trained team.