SINCE FEBRUARY, THE TOTAL NUMBER OF PEOPLE VACCINATED grew steadily even as the number of tests for COVID-19 declined sharply in the United States. But overall test volume has remained steady at 130% of pre-pandemic levels, said Brian Kemp, Vice President of Revenue Cycle Operations for XIFIN, a revenue-cycle management company for clinical laboratories.
Such higher levels of testing have created a need for XIFIN to open a new office next month in Charleston, S.C. Current test volumes are a sign of better times for the clinical laboratory industry.
Strong Test Volume
“Despite the fall-off from the peak volume of COVID-19 testing at the start of the year, XIFIN’s Lab Volume Index currently is about 130% of the pre-pandemic level for all types of tests combined,” Kemp noted.
This increased level of testing is one factor behind XIFIN’s decision to open a new office in South Carolina. Since the lab-specific revenue-cycle management company was founded in San Diego in 2001, XIFIN has seen steady growth in lab testing overall, along with a corresponding increase in the volume of bills it processes for hospital labs and independent labs.
Along with that growth in testing, more clinical labs are interested in having consulting and lab-billing management firms take over their billing operations, Kemp said. “As XIFIN expanded beyond its core area of being a respected revenue-cycle software company providing software-as-a-service (SaaS) for the laboratory diagnostic space, we have seen the opportunity to offer an outsourced-billing service,” Kemp explained.
During the past 20 years, public payers—including Medicare, Medicaid, and commercial health insurers—have become more sophisticated in managing how they process and deny bills from all providers, including clinical laboratories. In that time, XIFIN has seen a growing need to help labs get paid more efficiently and an increased need among its lab clients to collect all of what they submit in claims, he said.
In addition, there is a growing need for more face-to-face contact with XIFIN clients. “We have customers across the United States, and we wanted to have locations that were convenient for all of them,” Kemp added. “And we definitely wanted to locate the new office on the East coast because roughly two thirds of the hospital beds in this country are east of the Mississippi.”
Starting next month, XIFIN will open the new office under Kemp’s leadership. Over the next two years, the company plans to invest $25 million in creating 150 new jobs and capital expenditures in the Berkeley County region around Charleston. Although not mentioned by the XIFIN team, The Dark Report believes that other factors in the decision to locate the new office in South Carolina include California’s high tax and regulatory environment, and lower housing costs for staff in South Carolina.