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Commentary and Opinion by R. Lewis Dark

Medicare’s Latest Attack on Lab Test Prices

MANY OF YOU KNOW ABOUT THE PROPOSED NEW MEDICARE RULE by the Centers for Medicare & Medicaid Services (CMS) that it would use to initiate a review of the prices it pays for 1,250 clinical laboratory tests under the Medicare Part B Clinical Laboratory Fee Schedule (CLFS). However, I’ll bet that most of you are […]

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Prosecutors Ready to Target Pain Management

OVER THE PAST DECADE, many lab executives and pathologists have become aware of the abusive activities in the field of drugs of abuse testing and pain management testing. The frustration for those who understood the true scale of the fraud and abuse in this sector of healthcare was that no federal or state prosecutor seemed

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Feds Nail Doctors for Accepting Bribes from Labs

HALLELUJAH! FOUR DOCTORS IN NEW JERSEY HAVE PLEADED GUILTY to federal criminal charges of accepting bribes from Biodiagnostic Laboratory Services (BLS), the clinical lab company in Parsippany, New Jersey. Can any of you remember the last time that a federal prosecutor pursued criminal felony charges against multiple physicians who were referring lab tests to a

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Lab Landscape Changing as ACOs Get Started

FOR THOSE OF YOU INTERESTED IN HOW the development of accountable care organizations (ACOs) in a community causes a realignment among providers and the clinical laboratories serving them, I offer you the example of Genesis Health System in Davenport, Iowa. As you will read in this article, this five-hospital health system has just acquired the

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Why a Divided Lab Industry May Soon Fall

OVER THE PAST TWO DECADES, it has often been remarked on these pages and by many others that the divided nature of the laboratory medicine profession will prove to be its ultimate Achilles heel. These divisions center around different scientific disciplines within pathology and lab medicine as well as the competing economic interests of the

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Financial Hurricane Hits Entire Lab Testing Industry

FOR ABOUT 18 MONTHS NOW, THE ENTIRE LABORATORY TESTING INDUSTRY has been hit by an ongoing series of painful cuts to lab test fees and announcements of more restrictive coverage guidelines. Even today, there is additional news of rock bottom prices to share with you. In this issue, you’ll read about Aetna, Inc.’s latest strategy

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Unpaid for Molecular Tests, Some Labs Are Closing

THERE IS GREAT FRUSTRATION ACROSS THE LABORATORY MEDICINE PROFESSION on the subject of getting paid for claims covered by the new Tier I and Tier II molecular test CPT codes. We are now in the fifth month of the year and pathologists are still waiting for an acceptable resolution to this situation. Last week in

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Reimbursement System Fails Labs and Patients

There is confusion and disruption in the molecular testing sector of the clinical lab testing industry. That’s because both government and private payers were not ready to process and reimburse for the 100+ new molecular CPT test codes on January 1, 2013. That is the date when the Medicare program was supposed to be ready

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Cerner Acquires Lab Automation Company

BY NOW, MANY OF YOU HAVE HEARD THE NEWS that Cerner Corporation has acquired Labotix, Inc., the laboratory automation company based in Peterborough, Ontario. That transaction was announced last Monday, March 18. I consider this deal notable because it is an example of how strange bedfellows will be joining forces as healthcare undergoes a radical

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Predicting the End of Fee-for-Service Medicine

HOW DISRUPTIVE WILL THE END OF FEE-FOR-SERVICE MEDICINE be to the lab testing industry? I ask this question because we are about to leave the era of fee-for-service (FFS) medicine and move into the era of value-based and bundled reimbursement. Since World War II, FFS has been the overwhelmingly dominant payment model for the healthcare

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