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Clinical Laboratory Trends

Clinical laboratories, where tests are done on clinical specimens in order to get information about the health of a patient as pertaining to the diagnosis, treatment, and prevention of disease, are facing numerous challenging trends as healthcare reform continues to evolve.

Some of these clinical laboratory trends include:

  • The Protecting Access to Medicare Act (PAMA) of 2014.

    Under PAMA, many clinical lab organizations will see a substantial decline over the coming years in the prices paid to them for the highest-volume lab tests reimbursed under Medicare Part B. The law specifies that the federal Centers for Medicare & Medicaid Services (CMS) can begin enacting those price cuts in 2017.

  • Laboratory benefit management program

    The laboratory benefit management program is a controversial program created by UnitedHealthcare in 2014. All outpatient laboratory services for members who are part of the Laboratory Benefit Management Program are subject to new requirements including advance notification and new medical policies.

    Physicians serving UHC’s commercial patients in Florida must notify UHC when ordering any of 80 clinical laboratory tests. Pre-authorization is also required for certain tests.

    During its introduction phase, the program has generated widespread resistance from Florida physicians, who protest that it will cause unnecessary delays for patient treatment, and undue burdens for doctors ordering tests. In addition to problems with lab test pre-notification algorithms within the BeaconLBS system, other problems cited by physicians include the exclusion of all but 13 Florida labs from the BeaconLBS “laboratory of choice network.”

  • Accountable care organizations

    ACOs are the product of a provision in the Affordable Care Act of 2010. They are integrated care networks of providers with the ability to provide care to, and manage patients, across the continuum of care that should include different institutional settings, such as ambulatory care, inpatient hospital care, and even post-acute care. Clinical labs have had difficulty gaining entry into newly- forming ACOs.

At the same time, a positive clinical laboratory trend is the increasing popularity of personalized medicine (PM), a medical model that proposes the customization of healthcare – with medical decisions, practices, and/or products being tailored to the individual patient. In this model, diagnostic testing is critically important, as it is often employed for selecting appropriate and optimal therapies based on the context of a patient’s genetic content or other molecular or cellular analysis.

FTC Opposes LabCorp’s Acquisition of Westcliff

CEO SUMMARY: On November 30, FTC commissioners filed an administrative complaint opposing Laboratory Corporation of America’s acquisition of Westcliff Medical Laboratories, Inc., on the grounds that it “violates antitrust laws and would lead to higher prices and lower quality…

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Several Laboratory Companies On Road to Public Stock Offering

ONE OF THE FEW PUBLIC STOCK OFFERINGS involving a lab testing company was completed last Wednesday. Exact Sciences, Inc., of Madison, Wisconsin sold $69 million worth of new shares to the public. Exact Sciences has proprietary diagnostic technology that it describes as “for noninv…

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Q3 Earnings Are Mixed Bag For the Two Blood Brothers

IF THERE IS A NOTABLE EVENT in the laboratory testing marketplace during 2010, it is that one of the nation’s billion-dollar lab testing behemoths has reported three consecutive quarters of declines in the number of test requisitions it handled, when compared to the same quarters during 2009. In t…

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Hospital-Owned Medical Groups Serving More Patients Per Doc

IT’S WIDELY KNOWN BY PATHOLOGISTS and laboratory administrators that hospitals and health systems are buying up private medical practices at an accelerating rate. This is a trend that favors hospital laboratory outreach programs, but may not be auspicious for the national laboratories. For this re…

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Two New Lab Companies Will Open in L.A. & Denver

CEO SUMMARY: It is unprecedented for two multi-billion-dollar health systems to announce laboratory testing outreach joint ventures just days apart. In Los Angeles, Providence Health & Services will partner with PAML to start a commercial lab company in the San Fernando Valle…

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Dr Lal PathLabs, Malpractice Costs, Med Tech Strike in New Zealand

BOSTON INVESTORS PURCHASE INTEREST IN DR LAL PATHLABS PATHOLOGY AND CLINICAL LABORATORY COMPANIES IN INDIA continue to attract investor interest. Last month, TA Associates, a private equity firm in Boston, Massachusetts, announced that it had purchased a minority interest in…

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Specimen Volume Declines Reported By Quest Diagnostics and LabCorp

IN REPORTING SECOND QUARTER EARNINGS, there was enough difference in the numbers announced by Quest Diagnostics Incorporated and Laboratory Corporation of America to catch the attention of financial analysts. Revenue at LabCorp was up for the quarter while revenue a…

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Halfpenny Technologies Buys Laboratory Management Services

TO BROADEN ITS CAPABILITIES in handling laboratory test data, Halfpenny Technologies, Inc., announced the acquisition of Laboratory Management Services (LMS) of Hauppauge, New York, earlier this month. Halfpenny seems to be particularly interested in the informatics…

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Clarient, Generation Health, GenMark, Osmetech, Laboratoire Cerba, UCLA Med Center

CLARIENT INKS PACT WITH GENERATION HEALTH FOR GENETIC TESTING PAYER PRE-AUTHORIZATION OF GENETIC TESTS is the reason for the newly-announced contract between Clarient, Inc., and Generation Health, Inc., of Upper Saddle River, New Jersey. An…

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Sonic Health Wins Irish Contract for Pap Testing

CEO SUMMARY: Evidently the Irish Health Service is satisfied with its decision to outsource all the nation’s cervical cancer screening tests. In recent weeks, it announced that two international laboratory companies would handle Pap testing for the next two years. Sonic Healthc…

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