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The Department of Laboratory Medicine, University of Washington, has explored various management of organizational approaches over the past seven years. The Centralized Processing Area supported by a computerized information system has evolved from these efforts. Despite a decrease in U.W. hospital usage since 1968-69, laboratory volume has steadily increased. The cost of these services is shown in relation both to three successive management systems and to the impact of inflation on laboratory costs. Chemistry and hematology costs per procedure, including administration and computer costs, are compared with microbiology cost per procedure, where the management system was not used. There is growing acceptance of the intangible benefits of computerization in the laboratory. Economic benefits are often presumed but have not been proven. Favorable economic effects of the Centralized Processing Area together with the computerized information system are demonstrated.
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