Scripps Clinic

The Client
Scripps Clinic operates labs across San Diego, California. The system offers a wide variety of services, such as blood tests, sample collection and testing for anticoagulation patients. They employ a team of expert pathologists who check blood, tissues and body fluids using the latest standards and technology.

The Challenge
Scripps Clinic lab was serving more than 1000 employed physicians. The system determined it had a disconnect between services and capabilities scope. It was causing $7 million in annual operating losses.

They called in Colaborate to assist in the financial rightsizing for the system as a whole, and for one of its hospital’s labs in particular.

The Success
Colaborate performed a detailed examination of all aspects of the lab. Our team immediately got to work addressing problem issues including fee schedules, lab staffing, test menu, contracting, billing, and compliance, making changes as necessary.

Quality and turnaround times improved. Within six months, Scripps Clinic had achieved a run rate contribution margin of $5 million annually from the same book of business.