Healthcare Reform Puts Local Labs at Risk

THESE ARE DANGEROUS TIMES for local clinical labs and community hospital-based pathology groups. Although several elements of healthcare reform and emerging models of integrated clinical care favor local labs, there are equally powerful trends at play with the potential to concentrate ever more market share and economic power into the hands of a dwindling number of huge national lab companies—to the extreme disadvantage of local labs.

At this year’s Executive War College on Laboratory and Pathology Management, the consequences of healthcare reform, the Accountable Care Act (ACA), and other prominent healthcare trends were the subject of several important presentations by expert speakers. Collectively, these speakers did not have good news for the long-term viability of smaller laboratory organizations if current, unfolding developments go unchecked.

One particularly relevant presentation on this subject was delivered by Paul Mango, Director of McKinsey & Company. He provided attendees of the Executive War College with a lucid, detailed strategic analysis of the key trends now reshaping the healthcare system of the United States. You can read our analysis of his remarks on pages 10-17 of this issue. However, I would recommend that you also purchase the audio recording of his presentation, along with his slide deck, so you and your lab team can listen and get the full impact of his message to the attendees, along with the important nuances that are tough to capture in a written intelligence briefing.

In particular, I am proud to say that, as you read about how Paul Mango analyzes the impact of the ObamaCare bill on socializing what he calls the “financial accountability for medical risk,” you will acquire insights into the construction and intent of this legislation that I have never seen reported on by a major media source. THE DARK REPORT is first to help you access this invaluable strategic information.

Based upon the collective wisdom and predictions offered by the 90 speakers at this year’s Executive War College, my primary message to you today is that a range of trends and healthcare market dynamics are underway that will prove unfavorable to local labs, hospital lab outreach programs, and pathology groups. It will require foresight and proactive effort by our industry leaders to forestall the worst consequences of these trends. It is a time for all the parochial interests in lab medicine to come together and work for the common good.


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