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Hospital laboratory directors have to decide whether to add an in-house histology laboratory to the clinical facilities or whether to subscribe the services of a nearby reference laboratory. Selection is not an easy task. Many factors affect the choice: for example the present laboratory system, administration, pathology, engineering, medical records, medical staff etc. The choice becomes more difficult for small hospitals. The crux ofthe problem is that choices have to be made under conditions of uncertainty, and these uncertainties must first be methodically eliminated. The Bayesian decision theory provides a strategy for making the best choice [1]. This theory is a tool that decision-makers can rely on in circumstances where several choices of action are available, but no exact information is available about the determinants ofthe outcome ofthose choices. In decision theory, choice is described as the interaction of groups or related constructs. Modern decision theory is especially useful in situations where the results of the decision may depend upon the outcome of others. Most decision-making deals with more than one choice. Evidence ofwide applicability ofmodern decision theory is apparent in such areas as business and economics [1-5] patient management [6 and 7], meteorology [8, 9 and 10], health care [11, 12 and 13] and laboratory tests [14 and 15]. Applying a systematic approach based on modern decision theory involves the following major steps:

Decision theory approach to establishingan in‐house histology laboratoryin small hospitals