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Pathology Trends

Pathology groups face a number of challenging pathology trends in the era of radical healthcare reform.

One of the primary trends is that like clinical laboratories, these businesses are carrying significant and potentially unsustainable levels of unreimbursed services. Although bad debt and uncompensated care in the healthcare industry are not new, they have been increasing at the same time that downward pressure is being applied to pathology reimbursement.

Medical laboratories and pathology groups are also facing enormous levels of change in their clinical, regulatory and financial environments. As the Affordable Care Act is implemented, laboratories see downward pressure on reimbursement at both the federal and payer level, coupled with increased emphasis on efficiency and quality.

Labs and health care providers need to seriously consider moving toward a retail business model. Changes in the health insurance market are now requiring patients to pay more out of pocket, and the perfect storm of bad debt and decreased requirement is pressuring laboratories.

Other pathology trends include:

  • Growing emphasis on the continuum of care
  • Increasing patient interaction directly with the lab organization
  • Mounting demands of interoperability across a proliferation of disparate information technology systems to achieve meaningful use
  • Evolving requirements for communication and data sharing with payers, accountable care organizations (ACOs), health information exchanges (HIEs) and other trading partners
    Industry observers say that responding to each of these trends requires access to the most complete set of patient data possible. Accurate patient identification and record consolidation is central to achieving these goals.

In addition, labs and pathologists are increasingly urged to add value to the testing services they perform by leveraging information technology. For instance, advanced health information technology can be deployed within clinical labs and pathology groups specifically to meet changing patient expectations, while supporting the needs of client physicians for optimal workflow.

Aligning Pathologist Productivity With Compensation Can Be Challenging

“Growing interest in ways to link a pathologist’s productivity to his/her compensation makes this a widely-discussed topic within many pathology group practices.” –Dennis Padget CEO SUMMARY: Part Three continues THE DARK REPORT’S series on meas…

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How Local Path Groups Can Keep Patient Access

CEO SUMMARY: For pathology groups operating their own histology and cytology labs, a growing problem is access to patients covered by exclusive managed care contracts. In the Northeast, several persistent pathology group practices are using some effective business strategies to fight this…

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TriPath Imaging and Ventana Sign Major Development Pact

IF THE NEW BUSINESS AGREEMENT between Ventana Medical Systems, Inc. and TriPath Imaging, Inc. is successful, then the anatomic pathology laboratory may have a very different look in future years. Last week, Ventana Medical Systems, Inc. announced a …

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ChromaVision Targets National AP Market

CEO SUMMARY: Three new business strategies are moving ChromaVision into different segments of the laboratory testing marketplace. The company has built a new laboratory facility and will support local pathology groups with advanced diagnostic technology. It is also expanding its presence …

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Part II: Path Condo Labs As A Threat to Pathology

SPECIALIST PHYSICIAN GROUPS are taking active steps to capture anatomic pathology (AP) revenues that result from specimens generated by their groups’ patients. Yet the anatomic pathology profession is only now awakening to this threat. To educate and alert pathologists and their group practice adm…

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LabCorp’s Smith Speaks On New Pathology Trend

CEO SUMMARY: During the past decade, Laboratory Corporation of America’s Brad Smith faced the spear point of evolving Medicare/Medicaid compliance initiatives which changed so many laboratory industry business practices. Smith believes that business models for in-house anatomic patholog…

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Of Congress and the OIG: Speedy Action Ahead?

CEO SUMMARY: During the short life of AP laboratory condominium complexes, they have attracted the interest of both an influential Senator and the Office of the Inspector General (OIG). Last month, Senator Charles E. Grassley sent a letter to the OIG requesting that it investigate the AP …

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Peeking Into Finances Of Pathology Lab Condos

CEO SUMMARY: In the possession of THE DARK REPORT is a copy of revenue and expense projections shown by a pathology condo laboratory complex promoter to prospective urology groups. They project that even smaller urology groups can realize worthwhile income if they invest in a pathology co…

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Pathology Consultants See In-House AP Trend Unfolding

LOCAL PATHOLOGY GROUP PRACTICES are themselves the “canary in the coal mine” to provide early warning about the exploding interest of specialist physicians at capturing the anatomic pathology (AP) revenues generated by their patients. THE DARK REPORT interviewed three consultants, each of whom s…

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AP Test Over-Utilization Will Be One Achilles’ Heel

CEO SUMMARY: Over-utilization is likely to be a prime concern when federal healthcare enforcers eventually investigate in-house anatomic pathology laboratories owned by specialist physicians. Some in-house pathology lab condo promoters are basing financial performance on 100% utilization …

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