Unlocking Success: The Top 7 Clinical Lab KPIs You Need to Track

As clinical labs continue to play a major role in the healthcare industry, the need for monitoring key performance indicators (KPIs) has become vital. With the increasing demand for accurate and timely test results, tracking metrics such as average revenue per test, turnaround time for test results, and the number of tests performed per month has become crucial. In this article, we will delve deeper into the top seven clinical lab KPI metrics and how to track and calculate them.

For a clinical lab to remain competitive in the industry, patient satisfaction rates need to be high and, thus, are a significant KPI to track. Similarly, doctor satisfaction rates are equally important as it can lead to more referrals for the lab. Alongside these metrics, measuring the number of repeat customers and the percentage of accurate test results can significantly impact the success of a clinical lab.

• Average revenue per test
• Turnaround time for test results
• Number of tests performed per month

Recent studies by the American Clinical Laboratory Association have shown that the clinical lab industry has been growing at an impressive rate of 5.7% annually, with the industry as a whole accumulating $80 billion in revenue in 2020 alone. Understanding and effectively tracking the core KPIs can enable a lab to leverage this growth and stand out among the competition.

• Patient satisfaction rate
• Doctor satisfaction rate
• Number of repeat customers
• Percentage of accurate test results

In conclusion, tracking KPIs is vital for the success of any clinical lab, and with our detailed breakdown of the top seven metrics, we hope to provide useful insights into how to track and calculate them effectively.

Average Revenue per Test

In the clinical lab industry, 'Average revenue per test' is a significant KPI metric that measures the amount of revenue generated for each test conducted in the lab. This KPI metric is crucial in determining the financial health of clinical laboratories.

Definition

The Average revenue per test KPI represents the revenue earned by the laboratory from each test performed.

Use Case

This metric is essential for laboratory managers to monitor the lab's financial health and evaluate the operational efficiency of the lab. Average revenue per test KPI helps managers in monitoring pricing strategies, optimization of operating costs, and identify areas that need improvement.

How to Calculate KPI

To calculate the Average revenue per test KPI, use this formula:

Calculation Example

Suppose a laboratory with a total revenue of $100,000 performs 10,000 tests in a month, then the average revenue per test is:

KPI Advantages

• Helps managers in identifying areas that need improvement to increase profitability
• Enables laboratory managers to monitor pricing strategies and optimize operating costs
• Helps in evaluating the operational efficiency of the lab.

KPI Disadvantages

• The KPI does not consider the cost of conducting each test
• The KPI does not reflect the differences in complexity or time required for each test
• It may not provide a clear picture of the revenue generated by high-margin tests, which can skew the results.

KPI Industry Benchmarks for the KPI: 'Average revenue per test'

The industry benchmark for average revenue per test varies depending on the type of tests performed and geographic region; however, on average, the industry benchmark is estimated to be around $10-$15 per test.

Turnaround time for test results

In the clinical laboratory industry, turnaround time for test results is a critical metric that measures the time it takes for a patient's test to be completed, and the results returned to the physician or healthcare provider. This metric is an essential measure of the lab's efficiency and quality of service.

Definition

The turnaround time for test results is the duration between the time the lab receives the specimen and the time the laboratory results are reported to the ordering healthcare provider or the patient, as the case may be.

Use Case

This KPI is of the utmost importance to a healthcare provider or institution as it directly affects the treatment decisions and care plan for patients. A rapid turnaround time helps physicians make immediate diagnoses and formulate appropriate treatment plans.

How To Calculate KPI

To calculate the turnaround time for test results KPI, it's important to note the starting and ending times. The formula is as follows:

Calculation Example

An example of this formula in action would be as follows. If a lab receives a specimen at 8:00 AM (start time), and the test results were reported to the ordering healthcare provider or the patient at 2:00 PM (end time), the turnaround time would be:

Therefore, the turnaround time for test results would be six hours.

KPI Advantages

• Provides essential information to healthcare providers for rapid diagnoses and immediate treatment decisions.
• Indicates the Lab's efficiency and timeliness of the services they provide
• Informs of any delays in servicing patients thereby enabling the corrective measures to be put in place.

KPI Disadvantages

• Does not account for instruments or personnel issues that could cause a delay in the testing process.
• Can be skewed if a lab prioritizes fast turnaround time over accuracy and precision in testing, which can ultimately lead to misdiagnosis and inappropriate treatment decisions.

KPI Industry Benchmarks

The industry standards for turnaround time for test results vary by laboratory and specialization. However, a general benchmark for test results return time is within 24 hours for most routine clinical laboratory tests.

Number of tests performed per month

The number of tests performed per month is an essential clinical lab KPI that measures the volume of tests run in a specific period. The KPI helps lab managers determine how many tests the lab has conducted and track test volume trends over time. It is also used to evaluate lab productivity and efficiency.

Definition

The number of tests performed per month is a KPI that shows the total number of tests completed by the clinical lab during a month. The KPI includes all types of tests performed by the lab during the period, including routine and specialized tests.

Use Case

The number of tests performed per month KPI is instrumental in measuring the productivity and efficiency of clinical lab operations. By tracking the number of tests completed in a month, lab managers can determine whether the lab is producing expected output levels.

How To Calculate KPI

The formula for calculating the number of tests performed per month is:

Calculation Example

Suppose a clinical lab conducts 60,000 tests in January; the number of tests performed per month KPI would be:

KPI Advantages

• Helps to track lab productivity and efficiency
• Allows lab managers to identify trends in test volume
• Assists lab managers in evaluating staff workload and performance

KPI Disadvantages

• Does not account for errors or mistakes in the testing process
• Does not evaluate the accuracy or quality of tests performed
• Does not consider the type or complexity of tests performed

KPI Industry Benchmarks

According to industry benchmarks, clinical labs conduct an average of 900-1500 tests per month. However, this figure varies widely based on the size and type of lab, tests offered, and patient volume.

Patient satisfaction rate

As a clinical lab, measuring patient satisfaction rate is crucial to understand your performance and how your patients perceive your services. It is one of the most critical KPIs in the healthcare industry, which measures the patient experience. The higher the patient satisfaction rate, the better the clinical lab's performance.

Definition

Patient satisfaction rate is a KPI used to determine the percentage of patients satisfied with the clinical lab's services. It measures how well the lab facilities are supporting the patient's needs and if the patient is satisfied with the level of care provided during the visit or stay.

Use Case

Tracking patient satisfaction rate over time can help provide insights into areas where clinical labs may need to improve to better serve patients. It can give insight into how well the lab is performing regarding patient communication, test accuracy, and wait times.

How To Calculate KPI

The formula to calculate patient satisfaction rate is the total number of satisfied patients divided by the total number of patients multiplied by 100.

Calculation Example

Suppose a clinical lab had 500 patients for the month of January, and 450 of those patients were satisfied with their experience at the lab. The patient satisfaction rate for the month of January would be calculated as follows:

The resulting patient satisfaction rate for January is 90%.

KPI Advantages

• Measuring patient satisfaction rate can help clinical labs improve their services and identify areas of excellence.
• Satisfied patients are more likely to return to the facility, bringing in repeat business and positive word of mouth.
• High patient satisfaction rates can help differentiate your clinical lab from the competition.

KPI Disadvantages

• Patients may be unwilling to provide feedback, leading to an incomplete view of performance levels.
• Subjectivity within patient satisfaction surveys could lead to unreliable data and potential bias in results.
• Patient satisfaction surveys only provide insights from a limited sample, which may not represent the entire patient population.

KPI Industry Benchmarks

According to a study done by the American Customer Satisfaction Index, the average patient satisfaction score for clinical labs was 75 out of 100 in 2021.

Doctor satisfaction rate

As a clinical lab, tracking your doctor satisfaction rate is crucial for understanding how well you are serving your client base. This KPI helps you evaluate the effectiveness of both your lab services and your overall customer service.

Definition

Doctor satisfaction rate is a measure of how satisfied doctors are with the services they receive from your clinical lab.

Use Case

Tracking your doctor satisfaction rate can help you:

• Identify areas for improvement in your lab services and customer service.
• Measure the effectiveness of changes you make to your lab services or customer service.
• Evaluate how well you are serving your client base and whether you are meeting their needs.

How To Calculate KPI

To calculate your doctor satisfaction rate, use the following formula:

Calculation Example

Suppose your clinical lab serves 100 doctors in a given month. Out of those 100 doctors, 80 report being satisfied with your lab services. To calculate your doctor satisfaction rate, plug in the numbers from your data:

In this example, your doctor satisfaction rate is 80%, indicating that the majority of doctors you serve are satisfied with your lab services.

KPI Advantages

The advantages of tracking your doctor satisfaction rate include:

• Helping you identify areas for improvement so you can provide better lab services and customer service.
• Measuring the effectiveness of changes you make to your lab services or customer service.
• Evaluating how well you are serving your client base and whether you are meeting their needs.

KPI Disadvantages

The disadvantages of tracking your doctor satisfaction rate include:

• It may not provide a comprehensive picture of your overall lab services and customer service effectiveness.
• It may be subject to individual doctor biases and preferences.
• It may be difficult to obtain feedback from all doctors you serve.

KPI Industry Benchmarks

To evaluate your doctor satisfaction rate, you can compare it to industry benchmarks. According to industry data, the average doctor satisfaction rate in clinical labs is around 85%.

Number of repeat customers

As a clinical lab, one of the most important indicators of your success is the number of repeat customers you have. In today's competitive healthcare industry, it's essential to keep your customers coming back for more. Let's take a closer look at this KPI and how you can track and calculate it.

Definition

The number of repeat customers KPI is a measure of how many customers return to your lab for additional testing or services. It demonstrates how loyal your customers are and how satisfied they are with the quality of your services.

Use Case

This KPI is crucial for clinical labs because repeat customers are more profitable than new customers. Existing customers are cheaper to retain and are more likely to make repeat purchases, leading to a more stable revenue stream. Through this KPI, labs can identify high-value customers who are more likely to generate greater revenue and invest in strategies to retain them.

How To Calculate KPI

To calculate the number of repeat customers KPI, use the following formula:

Calculation Example

Let's say your lab had 500 customers in a given period, and 150 of those customers returned for additional testing or services. Using the formula, your number of repeat customers KPI would be:

KPI Advantages

• Measures customer satisfaction and loyalty
• Identifies high-value customers
• Provides a stable revenue stream

KPI Disadvantages

• Doesn't consider new customers
• Doesn't indicate why customers are returning
• Can be influenced by changes in market conditions

KPI Industry Benchmarks

According to industry benchmarks, the average number of repeat customers for a clinical lab is around 30%. However, this can vary depending on the lab's location, size, and services offered. It's important to track your lab's performance over time and compare it to industry benchmarks.

Percentage of accurate test results.

One of the most critical key performance indicators (KPIs) for clinical labs is the percentage of accurate test results. Accurate test results are critical for patient health and outcomes, and as such, clinical labs strive to obtain the highest accuracy rates possible.

Definition

The percentage of accurate test results tracks the number of tests that produce accurate results as a percentage of all tests performed by a clinical lab. This KPI provides insight into the lab's overall testing accuracy, which is essential for patient care and outcomes.

Use Case

This KPI is particularly important for clinical labs as it measures the accuracy of the tests performed. As such, it provides valuable insight into the quality of the lab's testing processes, any issues, and opportunities for improvement.

How To Calculate KPI

To calculate the percentage of accurate test results, use the following formula:

Calculation Example

Suppose a lab performed 1,000 tests and obtained 970 accurate test results. The percentage of accurate test results would be:

KPI Advantages

• Provides insight into testing accuracy.
• Identifies opportunities for process improvement.
• Ensures patient safety and outcomes.

KPI Disadvantages

• Reflected accuracy may still not be 100% accurate.
• Only measures accuracy and does not provide information on other areas of the lab's operation.
• May not account for external factors beyond the lab's control.

KPI Industry Benchmarks

The industry benchmark for the percentage of accurate test results for clinical labs is typically above 95%. While individual labs may differ slightly depending on their size and services offered, this benchmark provides a good standard for testing accuracy across the industry.

Monitoring key performance indicators (KPIs) is essential for clinical labs to remain competitive and successful in the healthcare industry. High patient satisfaction rates, doctor satisfaction rates, and accurate test results are crucial KPIs to track. In addition, measuring the average revenue per test, turnaround time for test results, number of tests performed per month, and number of repeat customers can significantly impact a clinical lab's success.

Recent studies have shown that the clinical lab industry is growing rapidly, and understanding and tracking the core KPIs can enable labs to leverage this growth and stand out among the competition.

Therefore, it is vital for clinical labs to cogently track these KPIs to retain customers, improve patient satisfaction rates, and earn referrals from doctors. By effectively tracking and calculating KPIs, clinical labs can drive success and remain competitive in the healthcare industry.