Financial Analysis
There are two reasons that the SQA is less costly than
microscopy. Obviously, the sum of disposables plus labor
is lower, which results in lower direct costs.
Here is one calculation, based on labor rates at a California HMO.
| Assumption |
Microscopy |
SQA |
| Tech wage (with 30% benefits) |
$20/hr |
Same |
| Labor Time |
35 minutes |
2 minutes |
| Labor Cost |
$11.67 |
$0.66 |
| Cost of consumables |
Near zero |
$5.00 |
| Total cost per test |
$11.67 |
$5.66 |
| Savings per test |
|
$6.01 |
There is a second labor factor. The figures above reflect
the cost of a test assuming it is performed by a technician.
Microscopic semen analysis requires judgment, and therefore
is usually categorized as a "high complexity" test
which in many facilities demands a laboratory scientist.
If that is the case in your group,
and a laboratory scientists wage is similar to that in
California, there are new numbers:
| Assumption |
Microscopy by LabSci |
SQA by Tech |
| Wage (with 30% benefits) |
$30/hr |
$20/hr |
| Labor Time |
35 minutes |
2 minutes |
| Labor Cost |
$17.50 |
$0.66 |
| Cost of consumables |
Near zero |
$5.00 |
| Total cost per test |
$17.50 |
$5.66 |
| Savings per test |
|
$11.84 |
Assuming the wage differential,
if a lab does 20 tests per month, then annual SQA savings is substantial. Look
at the numbers:
20 tests/month is 240 tests/year. 240 tests times a differential of $11.84 equals
$2,841.60, Even using the same labor rate for both tests, the annual savings
would be 240 times $6.01, or $1,442.40.
There is a second and far larger benefit, however.
The ambiguity that is characteristic of microscopic
evaluations results in a certain percentage of "faulty" initial
screenings. Depending upon the practices of the facility and its physicians,
the cost of such errors may include unnecessary
therapy and protocols, and additional diagnostic procedures
for the other partner.
The objectivity of the SQA significantly reduces the incidence of such errors,
and therefore the cost of unnecessary work afterward. Though this document will
not attempt to quantify the benefit of consistent and accurate results, Progeny
invites you to make that calculation based upon the historical performance of
your group.
It's impossible to estimate how many erroneous fertility diagnoses were made
during the past twelve months, and the subsequent additional cost of them. It
is certain to be a significant number, and you can reduce that cost by at least
50% by using the SQA.
Since infertility issues are very time sensitive, the benefit to the patient-couple
is improved as well, since the correct diagnosis will be made on the first pass.
This benefit cannot easily be estimated in financial terms, but the emotional
issues are substantial.
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