Labs are Machines

It's here! Total Laboratory Automation is here. The fields of engineering, robotics and informatics have removed humans and replaced all disciplines of Lab Medicine with machines. It's important for every laboratory technologist to understand the fundamental principles of optics and how the machines use light to perform tasks. The areas of physics such as mechanics, acoustics, electronics, optics, prompt engineering, as well as artificial intelligence have become more relevant in medical laboratories. Every discipline has automated systems which require training, troubleshooting and quality management to ensure that results are accurate and precise. This gives faster turn-around time and allows for better standardization of the testing procedures. There is the elimination of inaccuracies in manual timing of reactions and the visual subjectivity of results which are based on the interpretation of technologists. The five step process for making labs into machines include: 

1. Question every requirement

2. Delete any part or process you can

3. Simplify and optimize

4. Accelerate cycle time

4. Automate

Medical Laboratories are simply machines. The role of the medical technologist now is data analysis and knowing how to troubleshoot these machines. This is the new era of Lab Medicine where technology and automation is at the forefront of every result reported.

Health Savings Account

A health savings account is a tax-advantaged account for an individual with high deductible health plans that want to save for medical expenses that those plans do not cover. Contributions are made into the account by the individual or their employer and are limited to a maximum amount each year. This is the ultimate investment account since the contributions to your health savings account are invested tax-free over time and can only be used for qualified medical expenses. The money in your health savings account can be used to invest in stocks, mutual funds, ETFs, bonds and other securities which can yield significant returns on the financial markets. Growth on your investments are tax free which makes having a health savings account ideal for doing investments. These accounts are ideal for self-employed individuals or those who are a part of the informal sector in any economy. If the funds are not used then it can be used for investments which would build more capital for more significant medical needs or just as an investment fund for retirement. This is one of the best tax-advantaged savings and investment tool that is available. Contributions are not subjected to tax, the money can be invested and grow tax free and withdrawals are not taxed once they are used for qualified medical expenses. 

There is also the issue of alternative healthcare financing for informal sector operators which makes up more than half of the economy in most developing countries. The informal sector may include those with employment in street vending, taxi driving, domestic work, farming or self employed contractors. Traditional health insurance model is not an option for the informal sector because of affordability, lack of mandatory health insurance laws for the poor, irregular income, unpredictable healthcare expenses, lack of risk pooling, lack of inclusion, fragmented access to healthcare, restricted access to health insurance, limited coverage and administrative challenges. Innovative models that can provide better systems for alternative healthcare financing include: 

1. Health Savings Account- This allows individuals to set aside funds specifically for healthcare expenses. These accounts are usually paired with high-deductible insurance plans, where individuals pay out-of-pocket costs up to a certain threshold. Health savings accounts can empower individuals to make informed decisions about their health care spending and provide a safety net for unexpected medical expenses

2. Medical Microinsurance- This refers to health insurance products designed for low-income individuals or households including those in the informal sector. These products usually have low premiums and simplified administrative processes. Microinsurance plans can provide coverage for specific healthcare services or a package of health benefits. These products are offered through partnerships between insurance providers, microfinance institutions and community based organisations.

These approaches to healthcare financing that are tailored to the circumstances of low income households are necessary for the advancement of universal access to quality healthcare services.

The medical laboratory will be at the forefront of solving many of these problems related to alternative healthcare financing. Lets partner together as we make quality and efficient healthcare delivery available to everyone.

Medical Supplier Financing

This is product sourcing strategy from a financial perspective. Factor financing has more positives than negatives to offer the healthcare space. The business of saving lives should not be deterred because of lack of proper financing. Buyers and sellers should be able to carry out smooth transactions that benefit patients so they can have access to medical diagnostic and therapeutic services. 

A factor is an intermediary agent that provides cash or financing to healthcare businesses by purchasing their account receivables. In short, a factor is a funding source; the factor agrees to pay the company the value of an invoice- less a discount for commission and fees. Factoring can help healthcare businesses improve their short-term cash needs by selling their receivables in return for an injection of cash from the factoring company. The practice is also known as factoring, factor financing and accounts receivable financing.

Product sourcing strategic financial management includes:

1. Payables finance

2. Dynamic discounting

3. Payables extension

4. Receivables discounting

5. Factoring

6. Forfaiting

7. Borrowing base finance

8. Purchase-order finance

9. Inventory finance

10. Distributor finance

The five main parts of a factoring transaction include:

1. the "fee" paid to the factor

2. the "interest expense" paid to the factor for the advance of the money

3. the "bad debt expense" associated with portion of the receivables that the seller will remain unpaid and uncollectable

4. the "holdback receivable" amount to cover merchandise returns and any other loss or gain the seller must attribute to the sale of the receivables. Sometimes the factor's charges paid by the seller (the factor's client) covers a discount fee, additional credit risk the factor must assume, and other services provided.

5. the "profit" which is the difference between the price the factor paid for the invoice and the money received from the debtor, less the amount loss due to non-payment.

This type of financing is ideal for all types of healthcare businesses. Medical Laboratories want to play an integral role in the applications of factor financing in the healthcare space and thus ensure the timely delivery of healthcare to patients. The patient always benefit whether the transaction is supply chain financing (reverse factoring), factor financing (accounts receivables financing) or providing access to working capital by purchasing invoices for unpaid health insurance claims (medical factoring). Healthcare factor financing can easily metamorphose into private credit and private equity investments.