Cost reduction is the primary force driving healthcare reform, To surv
ive and thrive in these tumultuous times, laboratories must adapt and
implement new business strategies. Business paradigm shifts create opp
ortunities for organizations with a plan; a wait-and-see attitude fore
casts failure. Drawing upon an 11-year experience with the ''ARUP busi
ness model,'' this work will highlight business strategies that have c
ontributed to the success of this university-based reference laborator
y. In the future, successful laboratories will implement new business
strategies to become more effective members of the emerging integrated
healthcare delivery teams. Within the laboratory, traditional organiz
ational disciplinary boundaries, i.e., chemistry, microbiology, and he
matology, are melding together to increase efficiency. Laboratorians m
ust become influential members of institutional healthcare delivery te
ams formed to control utilization, Laboratory services are being adjus
ted to optimize patient care. Incremental pricing is only one of the s
trategies to be implemented to expand outpatient business to those in
the region. Expanded computer capabilities, client services, specimen
handling, marketing, and sales are also required. On a regional basis,
service laboratories are increasingly joining forces to increase effi
ciency while at the same time improving the quality of patient care.