6: University Lab Testing Joanna Wu manages the University Lab Testing department within the University Hospital. Lab Testing, a profit center, perform university clinical care units as well as for outside health care providers (independent hospitals, clin- ics, and physician groups using a predetermined rate schedule. University Hospital health care providers reimburse University s most of the standard medical tests (such as blood tests) for other . These outside health care providers are charged a price for each lab test ting using a transfer price formula. Roughly 70 percent of all Lab Testing procedures are Testing oper- performed for University Hospital units and the remainder for outside health care providers. Other lab testing firms in the community perform many of the same tests as Lab Testing. Lab ates at about 85 percent capacity, on average. But when Lab Testing is operating at 100 percent of capacity, it must refuse outside work and even sends some inside- (University Hospital-) generated specimens to other community testing labs