Activity-Based Costing in IVF: A Framework for Transparency and Operational Scaling of Fertility Services
Chavez-Badiola et al., 2025
In vitro fertilization (IVF) laboratories operate much like specialized manufacturing facilities, converting biological materials (eggs and sperm) into embryos through complex procedures. Yet most clinics price their services using simple flat rates that don't reflect the true laboratory costs of different procedures. This study applied Activity-Based Costing to reveal the hidden economics of IVF operations across five U.S. laboratories.
The authors discuss how lab costs vary dramatically based on the number of eggs retrieved and the size of the laboratory. Smaller labs (performing 500 egg collections annually) were found to have 40% higher costs per procedure than larger labs (2,000 egg collections annually), due to less efficient staff/equipment utilization.
Understanding true cost variability could enable clinics to develop more sophisticated pricing models, make better decisions about technology investments, and identify opportunities for consolidation that could reduce overall costs.