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Economics of Inpatient Laboratory Tests

Laboratory testing for inpatients is not directly reimbursed but is folded into a single fixed global payment for an episode of care under a diagnostic related group (DRG). Payers are not concerned with how many tests are performed on a given patient admission because they will only reimburse a fixed global payment. However, hospitals and physicians need to be cognizant of test utilization, because ordering more tests than are necessary to care for a patient increases expenses and decreases the revenue margin from the global payment. 

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