Insourcing Laboratory Testing: Which Send-Outs Should You Bring In-House?

This insourcing model compares what you pay a reference lab for each send-out test against the full cost of performing it in-house, including reagents, labor, instrumentation and validation.

 

It helps hospital and outreach laboratories build a defensible business case for bringing high-volume tests back under their own roof.

 

The tool above is a sample build with illustrative data. Client versions are built privately for each laboratory.

 

What it models

• Annual send-out volume and reference lab cost by test

• In-house cost per test: reagents, controls, calibrators, labor and instrument amortization

• Reimbursement by payer mix, including Medicare CLFS rates

• Break-even volume, payback period and turnaround-time gains

• Validation and regulatory steps (CLIA, CAP) for each test brought in

Frequently asked questions

 

How do you decide which send-out tests to insource? Start with tests that combine high volume, high reference lab cost and an instrument platform you already own or can add affordably.

 

What does it cost to bring a test in-house? It depends on volume and platform; the model calculates cost per reportable result and break-even volume for each test.

 

How long does insourcing take? Most tests on existing platforms take a few weeks to validate; new platforms add procurement, installation and validation time.

 

Does insourcing improve turnaround time? Usually, because results no longer wait on courier pickup and reference lab batching.s

 

Ready to model your send-out menu? Book a 1-hour consultation or call 517-375-2670.