Cost analysis and containment

High-cost care does not equal high-quality care. ARUP’s financial-management tools offer real solutions for your laboratory needs. With an integrated focus on reducing costs and enhancing efficiency, our integrated health-diagnostics tools help you increase revenue, manage send-outs, decrease unnecessary spending, and promote more effective patient care. We work with you to streamline and improve processes, so you can be ready for next-era care delivery.

Make vs. Buy

ARUP Laboratories provides its clients with an analytical service that evaluates the economic feasibility of performing specific tests in-house (make) vs. sending these same tests to a reference laboratory partner (buy). Offering this unique cost accounting tool to its clients at no cost, ARUP provides both information and data, focusing on high-volume and high-cost spending to facilitate make vs. buy decisions. ARUP clients can thus:

• Transfer from purchase cost per unit to incremental cost.
• Decrease budget on “purchased services” line item.
• Decrease overall cost per unit.

Insource Advantage Report

The ARUP Insource Advantage Report analyzes current and historical costs as well as volume information to assist ARUP clients in managing their send-out purchase services in the most financially feasible way. The Insource Advantage Report is a valuable tool that complements the make vs. buy process and aids in the economic decision-making process. With data generated by the report, clients receive specific information, including:

• Volume and cost distributions
• Test menu shifts from year to year
• Average and median test prices
• Year-to-date dollar volume
• Percentage of tests done at ARUP
• Top 80 percent of tests by volume
• Top 80 percent of tests by cost
• Identify commercially available methodologies

The Insource Advantage Report helps ARUP clients identify appropriate expense distribution, and as a result, manage appropriate make vs. buy decisions.

Technology Transfer

ARUP’s active research and development in pathology and laboratory medicine allows it to develop new technologies and tests. ARUP is one of the industry leaders in molecular technology in both the clinical and anatomic pathology arenas. ARUP assists its clients in bringing tests in-house by:

• Sharing written procedures
• Evaluating instrumentation for make vs. buy
• Providing on-site training
• Providing quality-control samples for method validation at a nominal fee

Collaborations on method validation are also considered on a case-by-case basis for projects of mutual interest and benefit. By utilizing ARUP’s Insource Advantage, ARUP clients transition to in-house testing quickly, and avoid potential clinical potholes.

Clients benefit from ARUP’s clinical experience where methodologies and data validation are developed in a patient-care environment.