Introduction
Modern laboratories are under pressure to do more, with less, at higher standards. Traditional P&L reporting can mask inefficiencies and profit leakage at the test level. LTS built eValuate to deliver repeatable, activity-based cost-per-test calculations from laboratory operational data, turning raw information into financial insight.
The Challenge: Why Traditional Reporting Isn’t Enough
Financial data may arrive too late, too broadly, or disconnected from operations to drive decisions. Quarterly reports can show cost trends but not why reagent spend is rising or which analyzers are affecting margins. Without site-, department-, or test-level visibility, budgeting becomes defensive, pricing inconsistent, and cost-saving efforts miss their target.
The Solution: Introducing eValuate
eValuate uses finance, LIS, HR, and equipment-system data to calculate true cost, revenue, and profit per test, from organization level down to individual tests and analyzers. It applies a laboratory-optimized form of activity-based costing, balancing detail with repeatability and replacing assumptions with structured, data-driven logic.
From Model to Action: How It Works in Practice
Laboratories typically deploy eValuate in sprints, starting with high-level insights and progressively unlocking deeper operational layers:
- Sprint 1 (Site Level): map cost and revenue across laboratories, identify outliers, and benchmark performance.
- Sprint 2 (Department Level): tag reagent consumption, analyze staff-cost allocation, and highlight high-cost disciplines.
- Sprint 3 (Test/Analyzer Level): track analyzer utilization, identify unprofitable tests, and re-price or reassign workloads.
The Impact: What Labs Can Expect
The published V1 article reports that a four-site laboratory network using eValuate delivered the following in under 12 months:
- R9.4 million in operating cost savings.
- A 5-point increase in EBITDA margin.
- 12% improvement in analyzer utilization.
- 15% of floor space freed by retiring inefficient equipment.
- R3.1 million in cash freed through tighter reagent inventory management.
Why It Matters: Bridging Finance and Operations
eValuate connects finance insight into margin and investment with operational insight into how behavior, equipment, and process affect profitability. Together, teams can align around test-level performance for more accurate budgets, smarter pricing, targeted cost control, and resource planning.
Looking Ahead: From Insight to Advantage
The article positions cost intelligence as a competitive advantage: giving laboratories financial visibility to navigate change, invest wisely, and build a scalable, transparent, strategically aligned system.