CEO SUMMARY: The urine drug testing industry is challenged every day to detect the large number of patients trying to cheat on their drug tests. GenoTox Laboratories of Austin, Texas, developed a DNA-authentication method for urine samples that allows the lab to detect when patients have used a substitute for urine when undergoing medication- and
Laboratory ManagementSkip to articles
Laboratory management in today’s clinical lab industry is changing rapidly and facing entirely new challenges. One problem is the lack of upcoming younger lab managers, as the retirements of baby boomer pathologists, medical technologists and lab scientists are in the near future. These individuals make up the largest proportion of supervisors, managers, and lab administrators working in labs today.
As they retire, every clinical lab and pathology group needs to have the next generation of leaders ready to step up and assume responsibilities. But, across the lab industry, there are limited opportunities for every lab’s brightest up-and-comers to get the regular management development opportunities that are common among Fortune 500 companies. The Dark Intelligence Group has called for the establishment of a mentoring program to help overcome this problem.
At the same time, downward pressure on reimbursements and mounting competition have created an environment that requires much more effort for a medical lab to grow and thrive.
Legislation, including the Health Information Technology for Economic and Clinical Health Act (HITECH) of 2009 and the Patient Protection and Affordable Care Act (PPACA) of 2010, have placed significant demands on medical laboratories and healthcare providers to improve internal efficiency even while offering more services for less money. This pressure to “do more with less” is further compounded by the need to deliver increasingly personalized client service to retain and win clients.
With the era of fee-for-service medicine coming to a close, every clinical laboratory and anatomic pathology organization needs a strategy for getting paid, as new reimbursement models that support patient-centric care will make up a larger portion of lab revenues.
The challenge for every clinical laboratory manager is to understand how to evolve from a business model that is accession-centric or volume-centric to one that is patient-centric.
Many clinical laboratories today are developing data repositories to logically link all transactional and other information about a patient. These repositories allow physicians to see all relevant information, identify trends, and provide better care as a result, enabling labs to provide greater value to their customers, patients and payers, thus creating more value and becoming more patient-centric.
CEO SUMMARY: In its first five years of offering clinical tests, Invitae has outspent revenue by $330.7 million. Yet its executives are confident that their company is on a path to becoming one of the dominant players in the genetic testing sector. This profile of Invitae will help pathologists and lab administrators understand more about
IT IS THE NEXT STEP to continue diversifying its business away from clinical laboratory testing. On July 31, Laboratory Corporation of America announced that it would acquire Chiltern, a specialty contract research organization in London and Wilmington, N.C.
LabCorp valued the all-cash transaction at about $1.2 billion and said it would fund the deal with a
CEO SUMMARY: Quest Diagnostics is no longer an equity partner in the CompuNet Clinical Laboratory joint venture, which has operated successfully since its founding in 1986. Typical of other lab JVs and inpatient lab management agreements that the hospital or health system partners do not renew, none of the owners of CompuNet will comment on
CEO SUMMARY: It’s the second time in six years that a Japanese corporation paid a high price for a genetic testing company in the United States. Konica Minolta will purchase Ambry Genetics for $800 million at closing and $200 million upon hitting certain financial metrics. In 2011, Miraca Holdings acquired Caris Life Sciences for $725
CEO SUMMARY: In Dallas, the relatively short-lived lab company known as Med Fusion has a new owner. After seven years, the lab partnership of Baylor Scott and White, US Oncology Network, Texas Oncology, and Pathologists Bio-Medical Laboratories decided to sell their ownership stakes to Quest Diagnostics. The sale comes despite $100 million of capital and
CEO SUMMARY: By now, there is widespread recognition among pathologists and clinical lab managers that the era of fee-for-service reimbursement is giving way to new forms of payment that reward value. First-mover lab leaders are in the earliest stages of developing enhanced lab testing services that contribute to improved patient outcomes while reducing costs. These
CEO SUMMARY: Moving away from volume-based care will not be easy for clinical labs. After all, high volume sustains labs. But labs seeking to transition away from fee-for-service to value-based care must have a seat at the table where decisions are made, said a lab CEO who is part of Project Santa Fe, which wants
CEO SUMMARY: Is it a new sign of the times? After decades of reluctance to sell their lab outreach businesses or enter into inpatient lab management agreements with commercial lab companies, a surprising number of hospitals and health systems are taking that step. Since the first of the year, sales of several major hospital lab
ONE OF THE MORE CURIOUS SITUATIONS IN THE LAB INDUSTRY TODAY is the story of Aurora Diagnostics of Palm Beach Gardens, Fla. Even as it loses money, it continues to acquire pathology group practices.
Aurora recently issued its earnings report. For 2016, it disclosed a net loss of $29 million, with revenue of $284 million. This