Since 1995, Reliable Business Intelligence for Clinical Laboratories, Pathology Groups and Laboratory Diagnostics

January 2015

January 26, 2015 Intelligence: Late Breaking News

Interesting things are happening in the commercial clinical lab testing market internationally. In New Zealand, district health boards continue a decadeslong trend of squeezing commercial lab companies with the goal of reducing laboratory testing costs and eliminating redundancies. Currently the district health boards (DHBs) of Capital Coast, Hutt Valley, and Wairarapaā€”representing the the lower part of New Zealandā€™s north islandā€”are evaluating proposals to consolidate all community and hospital laboratory services into one service entity.

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Meaningful Use Stage 2 Is Problem for EHR Firms

CEO SUMMARY: EHR system vendors must now comply with the federal government’s Meaningful Use Stage 2 requirements. Well-established EHR vendors will survive. But smaller EHR companies may struggle to provide the enhancements to their first generation EHR products that are required to certify as MU Stage 2 compliant. These developments mean many physicians may need to find new EHR vendors. In turn, that will require clinical labs to build new interfaces to these physicians’ EHRs.

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Rheumatologists Oppose UnitedHealthā€™s BeaconLBS

CEO SUMMARY: Yet another specialty society is opposing the laboratory benefit management program UnitedHealthcare introduced in Florida last fall. Rheumatologists have joined four other specialty physicians in saying UHCā€™s BeaconLBS system could be detrimental to patient care. In a letter to UHC, the Coalition of State Rheumatology Organizations said it, ā€œwill pursue the reversal of this policy with our state and national societies through every regulatory, legislative, and public means possible.ā€

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Pathologists Exploring Use of Diagnostic Teams

CEO SUMMARY: In the search for ways to add more value to lab testing services, pathologists and lab administrators are considering organizing diagnostic management teams within their hospitals. Such teams focus on complex cases and include both diagnosticians and pathologists. In his pioneering work to develop the diagnostic management team concept, pathologist Michael Laposata, M.D., Ph.D., spoke recently about how such teams improve patient outcomes while reducing the cost of care.

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Did Theranos Turn Over its CLIA Lab Director?

PROBABLY NO SINGLE LAB INDUSTRY STORY OF THE PAST 24 MONTHS has generated a higher level of curiosity among pathologists and lab administrators than that of Theranos, the Palo Alto, California-based company that regularly claims it has the technology, the business model, and the low price strategy needed to disrupt the clinical lab testing marketplace.

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UCLA Pathologists, Radiologists Produce Combined Reports

CEO SUMMARY: To simplify diagnostic reporting, the pathology and radiology departments at the David Geffen School of Medicine/UCLA Medical Center are working together to deliver integrated diagnostic information to treating oncologists. This innovative strategy is designed to improve patient care and quality while saving time and cutting costs. For five months, diagnosticians have worked together on more than 50 lung cancer cases while gathering the evidence to show this interdisciplinary approach can improve decision making and reduce downstream treatment costs.

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UCLA Pathologists, Radiologists Produce Integrated Diagnostic Lab Reports

CEO SUMMARY: To simplify diagnostic reporting, the pathology and radiology departments at the David Geffen School of Medicine/UCLA Medical Center are working together to deliver integrated diagnostic information to treating oncologists. This innovative strategy is designed to improve patient care and quality while saving time and cutting costs. For five months, diagnosticians have worked together on more than 50 lung cancer cases while gathering the evidence to show this interdisciplinary approach can improve decision-making and reduce downstream treatment costs.

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Phlebotomist Describes Questionable Lab Practices

CEO SUMMARY: While working in the office of a physician who was a client of Health Diagnostic Laboratory, a phlebotomist says he was instructed to write the same 10 diagnoses on every test requisition a doctor sent to HDL, a lab company in Richmond, Virginia. HDL is under federal investigation, according to published reports. The same 10 diagnoses were recorded for every patient even though some of these tests were appropriate only for women, the source said.

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Healthcare Cost Solutions Will Continue to Pinch Lab Industry Revenues in 2015

CEO SUMMARY: Will 2015 turn out to be a watershed year for the clinical laboratory industry? With healthcare cost solutions continuing to squeeze laboratory profits, two federal agencies are pushing forward with initiatives that will touch nearly every medical lab in the United States in the next 12 months. Other equally powerful trends continue to negatively influence the prices labs are paid for their testing services. All these factors make it essential for lab administrators and pathologist business leaders to work proactively to maintain their labā€™s financial stability.

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