Professional paper
Business analytics of specialized medical biochemistry laboratory using profit and loss acount
Vikica Buljanović
Hrvoje Patajac
Darko Kirinčić
Mladen Petrovečki
Abstract
Introduction. By measuring the actual effectiveness of a medical biochemistry laboratory’s business
operations, we can determine the accounting measure of laboratory’s profitability, where operating
expenses of the laboratory are covered by the income generated from the services. A laboratory’s financial
report can be based on a profit and loss account, which shows whether or not a business entity, i.e., the
laboratory, is making a profit during a particular business period.
Methods. Profitability of the Specialized Medical Biochemical Laboratory (Laboratory) of the General
County Hospital in Našice, Croatia, was determined using the profit and loss account for 2007. Business
success was expressed using the accounting measures of marginal contribution, gross income, and operating
income, which could show whether or not the laboratory was operating profitably. This procedure
allowed us to identify indicators of successful or unsuccessful business operations of the Laboratory.
Results. According to the profit and loss account, the operating profit was 719,926 HRK, i.e., the
operating margin was 11.7%, indicating that the Laboratory was operating positively. After subtracting all
operating expenses per 100 income units, 11.7 units profit remained from the Laboratory’s core business.
Conclusion. The Specialized Medical Biochemical Laboratory of the General County Hospital in Našice
generated income, i.e., it operated at a profit. The purpose of profit and loss account was to determine
the Laboratory operations that had impact on its business effectiveness and could increase the actual
profitability. If the laboratory operates at a loss, and no activities are undertaken that would reverse the
business toward positive, the analysis may provide information on the cost for the society as a whole of
the studied laboratory within the existing healthcare system.
Keywords
business analytics; model of specialized medical biochemistry laboratories as an economic entities; modeling; profit and loss account; profitability
Hrčak ID:
70570
URI
Publication date:
10.7.2011.
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