You are a manager of a clinical laboratory in a large community hospital with an extended outreach program among the local physician groups. A new urology group has moved into the area and would like your high complexity lab to offer bioavailable testosterone (CPT84410) testing on site. Currently, you perform Total Testosterone testing (CPT84403) only and specimens for a bioavailable testosterone test is sent by courier to a commercial reference laboratory out of state. Your current volume of bioavailable testosterone tests is 50 tests/year sent to the reference lab, which then charges your lab $130 for each bioavailable testosterone test.

Show all math calculations.

Calculate your current annual expense for your current send-out volume of bioavailable testosterone (total tests x charge for each test):

Calculate the amount of annual revenue contributed by each Insurance Payer based on current total send-out test volume, reimbursement, and test volume percentages and fill in the table (total tests x reimbursement x % total test volume expressed as a decimal).

Determine Annual Overall Total Revenue and fill in the table (sum of the revenues from each Insurance Payer)

After determining the current Annual Overall Total Revenue, determine CURRENT profit or loss by using the current annual expense calculated in #1 and fill in the table. (Annual Overall Total Revenue Annual Expense)

Insurance Payer	Reimbursement for bioavailable testosterone	% of Total Test Volume	Revenue		Current Profit/Loss
Medicare/Medicaid	$53.00	35%	Annual Total Medicare/Medicaid
WePayWell	$75.00	15%	Annual Total WePayWell
GoodLuckWithThat	$67.50	25%	Annual Total GoodLuckWithThat
Other	$95.00	15%	Annual Total Other