Objective.-To identify means of improving provision of transfusion services to patients while reducing hospital costs, focusing on the practice of transfusion medicine and laboratory operations in a hospital. Data Sources.-English language literature, 1990 to present. Study Selection.-Case reports, controlled trials, and reviews. Conclusions.-Owing to fixed reimbursements, hospitals are seeking ways to reduce operational costs while maintaining patient care standards. In transfusion medicine, this can be accomplished through recognition of direct and indirect costs of transfusion, careful examination of transfusion criteria, and selection of laboratory procedures that truly add to patient safety.