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Testing over and underutilization plays a substantial role in both patient care and financial performance.
Overutilization can increase the overall cost, contribute to incorrect diagnosis, and misuses of time on
insignificant abnormal tests. Providers who exceed payor testing guidelines can be denied test reimbursements.
Underutilization also impacts patient care leading to needless morbidity due to missed or delayed diagnoses,
longer stays, higher pharmacy cost, and liability issues.

Analytical systems can give valuable, meaningful data and may be used to create a so-called physician report card
to track patterns of excessive or unnecessary ordering. Using the statistical data to re-educate physicians about the
importance of better test ordering practices will benefit the hospital’s overall financial health. Lab managers will be
able to follow patterns and monitor strategies over time. Having the ability to produce hardcore numbers at your
fingertips could save a large health system about $250,000 for every million billable inpatient test that equates
to over one million annually.