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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.

Anatomic Path Trends Portend Deep Changes

CEO SUMMARY: Our biannual review of trends shaping the anatomic pathology profession reveals that a wide range of influences are active. The nation’s healthcare system is undergoing fundamental changes in how it views the quality of health services and how it will favor top-performing p…

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“Pay for Performance” Starts For California Docs

CEO SUMMARY: California is a bellwether state for healthcare innovations. Six of its largest payers are collaborating on “Pay For Performance,” a program which pays financial incentives to physician group practices which achieve measurable outcomes in clinical care, patient satisfacti…

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‘Health Lawyers News’ Attacks Pathology Part A

CEO SUMMARY: Pathologists should take time to read the cover story in the May 2003 issue of Health Lawyers News. Although the story nominally addresses questions involving how hospitals should reimburse physicians for administrative duties, it deals mostly with clinical pathology…

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Florida Appeals Court Strikes Blow To Clinical Path Payment

LEGAL ARGUMENTS SUPPORTING payment for clinical pathology professional services were dealt a blow when Florida’s Fifth District Court of Appeal issued an unfavorable ruling on July 12 in Daytona Beach, Florida. “The import of the court’s ruling seems to be that a pathologist in Florida cannot …

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Marketing Approved Kits Against “Home Brews”

CEO SUMMARY: In past years, it was customary for laboratories to shift away from performing or ordering “home brew” tests in favor of FDA-approved test kits as they became available. However, new marketing models for diagnostic testing are shifting this long-standing practice. HIV res…

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Business Buzz Saw Hits Anatomic Path Firms

CEO SUMMARY: In recent years, both companies have enjoyed sustained and rapid growth in offering anatomic pathology (AP) services nationally. The departure of CFOs from both companies, each for different reasons, is a sign that such unbridled growth has created unique problems for each AP…

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Pathology Part A Comp Under Attack by Both Hospitals and Insurers

CEO SUMMARY: In steadily-growing numbers, hospitals and insurers are taking active steps to reduce or eliminate compensation for clinical pathology professional services, also commonly referred to as “Part A” services. Unfortunately, many pathology groups fail to anticipate this situati…

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Path Trends For 2002 Show Future Direction

CEO SUMMARY: Even as pressures to squeeze costs and consolidate within the pathology profession ease, a different set of market trends is exerting influence. Collectively, these trends portend the end of the small pathology group’s dominance of its local healthcare marketplace. It will …

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Histology Lab Goes Mobile To Serve Customers On-Site

CEO SUMMARY: During the 1990s, pathologists at Palm Beach Pathology recognized that more and more procedures were being done in ambulatory surgery centers and physicians’ offices. To maintain access to these patients, Palm Beach Pathology developed a strategic marketing plan with a uniq…

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New Legal Trends Now Affecting Pathologists

CEO SUMMARY: During the past 36 months, quiet and significant changes have occurred to certain legal issues involving anatomic pathology services. The resulting new environment exposes pathology groups to different types of threats, particularly to their sources of income. This intelligen…

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