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Volume XXI No. 1 - January 13, 2014

When Should Labs Become ‘Patient-centric?’

Commentary and Opinion by R. Lewis Dark / By

AS THE AMERICAN HEALTHCARE SYSTEM MOVES FORWARD with its transformation, several trends make it advisable that clinical labs and pathology groups consider the importance of becoming “patient-centric.” First, patients are being incentivized to become price shoppers and select their providers—including laboratories—on the basis of price and quality. Second, more patients have insurance with high deductibles …

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Genetic Testing Creates New Legal Risks for Labs

Genetic Testing / By

CEO SUMMARY: Last month, in Seattle, Washington, a jury ordered Laboratory Corporation of America and Valley Medical Center each to pay $25 million following a lawsuit about a ‘wrongful’ birth. At issue was how genetic tests were ordered, performed, and reported. This court case is the latest example of the heightened legal risk labs face …

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Hospital and LabCorp Hit with $50 Million Verdict

Genetic Testing / By

LAWYERS CALL IT A ‘WRONGFUL BIRTH.’ When no one spots an error in prenatal genetic testing processes, a wrongful birth can result, and that’s what happened in a case that ended last month with a jury award of $50 million to a family in Burien, Washington. Defendants Valley Medical Center in Renton, Washington, and Dynacare …

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Tricare, DOD Not Paying for MoPath Codes, LDTs

Laboratory Billing / By

CEO SUMMARY: It turns out that labs serving Tricare patients are going unpaid for certain LDTs, molecular, and genetic tests. The issue of nonpayment began in January 2013 when Tricare stopped paying for these tests that were billed under the new molecular CPT codes that replaced the previous stacking codes. Among the tests in question …

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Sonora Quest Builds EMPI To Serve Patients and ACOs

Clinical Laboratory Trends / By

CEO SUMMARY: Probably no state has seen a faster transition to ACOs, medical homes, and other types of integrated clinical care organizations than Arizona. Recognizing that this change created a new opportunity to add more value with clinical lab testing services, Sonora Quest Laboratories (SQL) developed an enterprise-wide master patient index. This gives SQL the …

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Claritas Is Example of New Lab Business Model

Clinical Laboratory Trends / By

CEO SUMMARY: One by one, new business models for clinical laboratory testing are popping up. Each is a response to healthcare’s rapid evolution, the ongoing decline in lab test reimbursement, and the growing role for molecular diagnostics and genetic testing. In Cambridge, Massachusetts, Claritas Genomics, formerly the molecular lab at Boston Children’s Hospital, is one …

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CMS Cuts BRCA Price by 49% in Response to Competition

Laboratory Management / By

IN THE FINAL WEEKS OF 2013, the federal Centers for Medicare & Medicaid Services (CMS) announced that it would reduce the price it pays for the BRCA genetic test by 49%, to $1,438, effective on January 1, 2014. For Myriad Genetics, Inc., this was not welcome news. Its share price fell by as much as …

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January 13, 2014 “Intelligence: Late Breaking Lab News”

Late Breaking Lab News / By

Currently there are 119 operational health information exchanges (HIEs) in the United States. This number is 58% greater than the 75 HIEs that were operational in 2010. These numbers were reported in Health Affairs. The study was authored by researchers at the University of Michigan. They also determined that 30% of the nation’s hospitals and …

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