Laboratory Test Pricing
VTH Policy # Bill307
| Implementation Date: 07/23/2009 | Date of Last Revision: 3/28/2023 | Next Review Due: 03/27/2025 |
| Reviewed by VTH Administrative Team: 3/16; 4/7/09; 3/28/2023 | Reviewed by VTH Board: 07/23/2009 |
| Reviewed by Legal Counsel: N/A | Reviewed by Biosecurity Subcommittee: 04/15/2009 |
Subject to modification by the VTH Director without approval.
Policy
Prices for outside laboratory tests (referral labs) will be marked up 100% over the cost to the Veterinary Teaching Hospital (VTH). In addition, a shipping fee (UPS or FedEx) will be assessed for each shipment to a lab based on packaging and shipping time requirements. This markup policy applies to all outside laboratory testing. All UI VDL lab tests will be marked up 100% over cost from the VDL.
In those circumstances where testing is free (state or federally-mandated tests) only professional services for specimen collection and a shipping fee will be charged. However, in those circumstances where a lab chooses not to charge for a specific reason clients will be charged the normal markup for that test. Laboratory fees are subject to the VTH Professional Discount Policy (20% for lab fees).
Occasionally, the mark-up may outprice the market. deviations from this policy may be requested through the VTH administration. A list of approved deviations will be maintained.
Guidelines
Pricing of laboratory tests will be based on the cost assessed to the Veterinary Teaching Hospital from the testing laboratory plus a markup to cover costs associated with processing samples, interpretation of results, record keeping, and administrative overhead. Pricing will be determined as follows: Tests will be marked up 100% based on the cost to the VTH, in addition, for samples shipped off campus a shipping fee will be charged. These fees will be assessed to clients based on required packaging, shipping time, and technician time associated with sample prep for shipping. Where multiple samples are being sent to the same laboratory, shipping fees may be pro-rated. All tests performed by the UI VDL will be marked up 100% over cost to the VTH.
In cases where a laboratory chooses not to charge for running an assay (i.e. special arrangements between the client/clinician and the lab), the standard markup for that test will be charged to the client to help defray the costs associated with processing samples, interpretation of results, record keeping, and administrative overhead. The markup will be determined based on the current cost of the test to the VTH plus either the 60% or 30% markup rate as appropriate.
On occasion a test may not be run because of an inadequate or damaged sample, in this situation, the client will not be charged and the VTH discretionary adjustment will be utilized to cover the costs of shipping and any lab fees incurred.
Procedure (if applicable)
Client prices for laboratory tests will be based on the invoiced cost of the test plus a markup in the amount of 100% for all UI VDL tests and outside referral lab tests. Costs are determined from the daily charge report received from the UI VDL and from invoices received from commercial or university laboratories and if necessary, the HIS is updated. For new tests, costs will be determined by consulting with the testing lab or checking the lab website when the test is entered into the HIS.
Definitions (if applicable)
HIS: Hospital Information System (Vetstar; SANDI)
Markup: The add-on charge is based on a percentage of the cost of the lab test used to arrive at the client price.
VTH: The collective clinical services of the Large Animal Clinic, the Small Animal Clinic, and the Veterinary Medicine South Clinic.