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Today’s Lab Test Model Won’t Survive Reforms

Doing more testing to drive down unit costs doesn’t work when payers cut lab test prices

CEO SUMMARY: For more than three decades, independent lab companies have waxed fat by increasing their respective market share of lab test referrals from office-based physicians. This era is poised to end as growing numbers of office-based physicians begin to practice medicine within an accountable care organization (ACO) or similar new integrated care delivery model, …

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