When it comes to running a successful laboratory, there are many factors that come into play. From staff to equipment, there are many components that can cause a lab to fail. Here are the top 5 reasons why clinical laboratories fail:

1. Billing Mistakes: One of the most common reasons why a clinical laboratory may fail is due to billing mistakes. Even minor billing errors can be devastating to a laboratory’s bottom line. The billing process needs to be thorough and accurate in order to ensure that the laboratory gets the maximum reimbursement possible. It’s essential to make sure all invoices and billing records are accurate and up-to-date. If billing mistakes are made, it can lead to reduced revenues, fines and penalties, loss of customers, and even legal action. Additionally, some billing software can be very costly and oftentimes companies overspend if they’re not careful. Research the pricing of software options to ensure you’re not overspending, and that your lab has the boost it needs to stay successful and profitable.
2. Over-Qualified Staffing: Another reason why laboratories fail is when they hire too many overly qualified people. Many times, laboratories overestimate their abilities to offer a wide range of specialized services. The result can be overstaffing, which leads to increased overhead costs and reduced profits. Having too many people in senior positions can lead to issues of fiscal mismanagement, as they often receive overpaid salaries while not being given enough important tasks to utilize their expertise meaningfully. This can result in an excessive amount of free time and unnecessary financial losses for your lab.
3. Too Much Initial Lab Space: Another typical misstep made by failing clinical laboratories is having too much initial lab space. Even if a laboratory is newly established or is opening a new facility, they should always be certain to rent or lease an appropriate sized space that allows for expansion. For example, a laboratory should not rent a space that is significantly larger than what is necessary for optimal laboratory operation. Having an overwhelmingly spacious area can lead to wasted expenditure for utilities, unneeded furniture, and more.
4. Improper Documentation: Documentation is key for any laboratory, so it’s essential for clinical laboratories to keep accurate records of lab processes and patient care. Ensuring proper documentation is an important way to prevent liability from mistakes. Many lab regulations have strict documentation rules and if a laboratory fails to follow these correctly, the lab may be subject to penalties and litigation.
5. Laboratory Violations: It’s also highly important to understand and follow all of the compliance and safety regulations regarding laboratories. Failure to do so could result in serious fines and penalties for the lab. To prevent violations and ensure a safe work environment, laboratories should ensure that all equipment is regularly inspected and calibrated; all hazardous materials are correctly stored and labeled; and that safety protocols are strictly followed. Taking these measures will help any lab avoid risks of violations and succeed in the long-run.

Overall, the key to having a successful clinical laboratory is to ensure that all processes are correctly followed, documents are properly maintained and up to date, employees are adequately skilled, and all safety regulations and standards are met. By following these steps, laboratories can maintain their potential for success and avoid any missteps that could lead to failure, while laboratorians should maintain a positive attitude and dedication to their work to ensure the best possible outcome. With careful attention to all aspects of the laboratory, such as quality control and accuracy, it is possible to establish a successful and reliable laboratory diagnostic service.