Management & Operations

New Competitors and Innovative Technologies Rapidly Transforming Anatomic Pathology

Anatomic pathology (AP) is undergoing rapid evolution that is undermining the primary business model in this profession: the community hospital-based private pathology group practice. That's one conclusion reached by The Dark Report  in its newest issue, featuring its bi-annual review of the most important trends in anatomic pathology.

One notable fact is that The Dark Report identifies 15 separate trends acting to transform the anatomic pathology profession.  This is the largest number of AP trends listed since The Dark Report published its first bi-annual list of anatomic pathology macro trends in 2002. Here are three of the fifteen AP trends covered this year:

1. National AP firms capture growing share of market. Since the mid-1990s, there has been a steady increase in the number of investor-funded companies competing regionally and nationally for anatomic pathology specimens. That's in addition to the major competitive efforts of Laboratory Corporation of America  (NYSE:LH) and Quest Diagnostics Incorporated  (NYSE:DGX) to capture and expand their share of the anatomic pathology marketplace.
2. Specialty physicians entering the AP business. In communities across the nation, urologists, gastroenterologists, and other specialist physicians have been establishing in-house AP laboratories to profit from the AP specimens generated by their patients. This trend continues to gather momentum and threatens to deprive community hospital-based pathologists of access to the case referrals of physicians in their communities.
3. Propriety test technology fuels growth in specialty pathology. Each month, new assays reach the marketplace that are based on patent-protected or proprietary test technology. By intent, the owners of this intellectual property are the only laboratory in the United States offering this diagnostic test. It's an AP macro trend which limits access to new technologies for private practice pathology groups. 

This bi-annual list of anatomic pathology macro trends describes a variety of market forces and technology breakthroughs actively reshaping the anatomic pathology profession. The macro trends range from the emergence of Generation X pathologists in leadership roles to digitization and automation of many pathology processes. Dark Daily recommends that pathologists and their practice administrators use this list of trends in strategic planning sessions with their laboratory's executive team. The list of 15 anatomic pathology macro trends provides a useful context for laboratorians seeking to evaluate their strengths, weaknesses, opportunities, and threats in the marketplace.

Related Articles:

Many Trends in AP Spell Lots of Change Ahead

The Dark Report, Vol. XIII, #2, February 6, 2006 

Anatomic Path Trends Portend Deep Changes

The Dark Report, Vol. XI, #2, January 12, 2004 

Path Trends For 2002 Show Future Direction