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Esoteric testing

Esoteric testing allows the analysis of rare substances or molecules that are not performed in a routine clinical lab. Many large commercial lab companies outsource complex tests to reference and esoteric testing labs. However, as technology continues to expand laboratory testing, tests that are considered esoteric today may become routine in just a few years. This is often the result of work performed by dedicated research and development scientists.

These tests are ordered when a physician requires additional detailed information, outside routine lab testing, to complete a diagnosis, establish a prognosis or choose and monitor a therapeutic regimen. Esoteric testing generally requires sophisticated instruments and materials as well as specialized personnel to perform and analyze results. The tests are typically outsourced to independent, specialized clinical reference laboratories because it is not cost effective for hospitals and physician office laboratories to perform the tests in-house.

These tests are ordered less frequently than routine tests and are generally priced higher than the routine tests. Esoteric testing is typically related to the medical fields such as endocrinology, genetics, immunology, microbiology, molecular diagnostics, oncology, serology and toxicology. Molecular diagnostics is the fastest growing segment of esoteric clinical testing.

The American Chemical Society publishes the Directory of Rare Analyses (DORA) which catalogues rarely ordered clinical tests and provides details on the labs performing them.

The challenges for labs performing such tests include not only finding qualified medical technologists, but also paying them the higher salaries they command because of the scarcity of their skill sets. In addition, materials used in these tests can also be costly, particularly because they are not usually purchased in large enough quantities to qualify for economies of scale.

Labs that perform these tests have capabilities including:

• Allergy
• Complex anatomic pathology with board-certified pathologist
• Bone markers
• Genetic analysis
• HLA testing
• Functional assays of the immune system
• Toxicology

In the U.S., labs that perform these tests range from ARUP Laboratories, Mayo Medical Laboratories, Quest Diagnostics Incorporated, and Laboratory Corporation of America to a growing number of specialty esoteric testing laboratories that offer proprietary esoteric assays. Examples of such specialty testing lab companies include Myriad Genetics, Genomic Health, and Foundation Medicine.

Massachusetts CPOE, MountainStar, PAML, HCA, Ogden Regional Medical Center, HIPAA 5010, LabCorp, Mubadala Health, KLAS

MASSACHUSETTS LAW MANDATES CPOE USE BY HOSPITALS IN 2012 EARLIER THIS YEAR, Massachusetts passed a law that requires all hospitals in the state to implement CPOE (computerized physician order entry) by 2012. The same law requires all hospitals in the state t…

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September 29, 2008 “Intelligence: Late Breaking Lab News”

It’s been a productive year for Michigan Co-Tenancy Laboratory (MCL) of Ann Arbor, Michigan, which performs reference and esoteric testing for its members. During 2008, four hospital systems have come aboard as new co-tenants. They are: Baptist Health, Montgomery, …

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September 08, 2008 “Intelligence: Late Breaking Lab News”

Here’s an update on the issue of why pathologists working in independent laboratories will not be paid under the Medicare Physician Quality Reporting Initiative (PQRI). (See TDR, August 18, 2008.) Last week, Donald McLeod, a spokesman at the federal Centers for Medicare & Medic…

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Analyzing Lab Bid Demo To Predict Its Outcome

CEO SUMMARY: After two decades of study and preparation, the Centers for Medicare & Medicaid Services (CMS) is pushing the laboratory profession toward the first pilot site in the Congressionally-mandated Medicare Clinical Laboratory Services Competitive Demonstration Project. Designe…

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Quest, LabCorp Slug It Out In Battle for Market Share

CEO SUMMARY: In reporting second quarter earnings, both Laboratory Corporation of America and Quest Diagnostics Incorporated discussed market developments. There were no surprises in the comments made by executives of both companies. Quest Diagnostics emphasized that it is hanging on to a…

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Growing NeoGenomics Offers FISH Test TC/PC

CEO SUMMARY: This specialty lab testing company now has laboratories in Fort Meyers, Florida; Nashville, Tennessee; and Irvine, California. It recently beefed up its executive ranks and is adding to its menu of genetic and molecular assays. In December, 2006, NeoGenomics …

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BRLI Seizes NYC Share In Two-Stage Effort

CEO SUMMARY: Bio-Reference Laboratories, Inc., (BRLI) reported record financial results for its most recent fiscal quarter last month. Much of this success is rooted in BRLI’s discipline in defining itself as a local laboratory and using enhanced lab testing services to align itself as …

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Quest Bites: Will Pay $2 Billion for AmeriPath

CEO SUMMARY: From its inception in the mid-1990s as a pathology physician practice management (PPM) company, AmeriPath was a business that its investors created specifically to be sold. Now Quest Diagnostics Incorporated is stepping up to pay a princely ransom of $2 billion to make AmeriP…

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March 12, 2007 “Intelligence: Late Breaking Lab News”

It’s the first opportunity to see how a New York-area laboratory is doing at grabbing UnitedHealth business. Bio-Reference Laboratories, Inc. (BRLI) of Elmwood Park, New Jersey, announced earnings for its first quarter (ending on January 31) in its 2007 fiscal year…

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Sonic Pays $180 Million In Acquisition of AEL

CEO SUMMARY: In a transaction that was quietly negotiated, Sonic Healthcare Ltd. will purchase American Esoteric Laboratories, Inc. (AEL). News of the sale was released Friday and the sale may close in early January. Once it owns AEL, Sonic will have a major presence in Memphis, Tennessee…

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