Medical laboratories now taking the steps to deliver patient-centric lab testing services report solid successes in improving patient/physician satisfaction, increasing lab revenue, and gaining more network access
Evidence is accumulating that “patient-centric” medical laboratory testing services are poised to become one of the most important new paradigms to reshape the house of pathology and clinical laboratory medicine in decades. Better yet, patient-centric lab services will earn more revenue for those labs that move fastest to incorporate these capabilities into their service mix.
“The paradigm of patient-center lab testing services couldn’t come at a better time for the clinical laboratory industry. Most labs are reeling from what is now nearly a full decade of successive and painful reductions in lab test prices and lab budgets,” observed Robert Michel, Editor-in-Chief of The Dark Report, which is Dark Daily’s sister publication. “After years of aggressive cost-cutting, most labs are down to the bare essentials and staff is overworked. That is why there is an urgent need for an operational and clinical strategy that will earn more payment from payers. (more…)
Alternative payment models and value-based payment schemes create financial unknowns for clinical laboratories and anatomic pathology groups
What happens to pathologists and clinical laboratories when fee-for-service reimbursement ceases to be the primary payment method for anatomic pathology services and medical laboratory tests?
After all, fee-for-service reimbursement for lab tests is what underpins today’s financial model for lab test services. Under this transaction-based business arrangement, a clinical laboratory that can increase its specimen volume will realize a lower average cost-per-test because of economies of scale within the lab. At the same time, the lower costs mean a bigger net margin available from profit, given the fixed price of the reimbursement for lab tests.
So what is a medical laboratory to do as healthcare shifts to a value-based reimbursement (VBR) model, formerly known as pay-for-performance? The answer to that question won’t take long to answer because of a recent announcement by the Department of Health and Human Services (HHS). (more…)
Progressive pathologists and lab leaders are looking ahead to the day when fee-service reimbursement is replaced by budgeted payment and similar arrangements
SAN DIEGO, CALIFORNIA—More than 100 clinical laboratory owners and lab executives gathered here this week for the annual meeting of the California Clinical Laboratory Association (CCLA). Because the medical laboratory testing marketplace in California is often a bellwether for trends that go national, the presentations were timely and of universal interest to lab professionals working in other regions of the United States.
The membership of CCLA certainly reflects the broader changes happening in the clinical laboratory industry nationally. Whereas a decade or two ago, the majority of CCLA members were independent lab companies providing routine lab testing services to office-based physicians, today the larger share of CCLA members are associated with lab companies that offer patent-protected or proprietary specialty tests. (more…)
Healthcare’s coming shift from fee-for-service to value-based reimbursement creates both a crisis and an opportunity for clinical laboratories and pathology groups.
With the era of fee-for-service medicine under siege, every clinical laboratory and anatomic pathology organization needs a strategy for getting paid, as new reimbursement models that support patient-centric care will make up a larger portion of lab revenues. Unfortunately, few real-world examples exist today to guide clinical laboratory executives as they develop these strategies.
Patient-centric medical care is an important goal for every healthcare provider. Patient-centered medical homes are enjoying strong growth and acceptance. Accountable care organizations (ACOs) are designed to serve the individual needs of each patient. Meanwhile, hospitals and physicians are getting better at measuring patient satisfaction because health plans are basing payment on these scores. (more…)
Record crowd of pathologists and clinical laboratory managers hear from medical lab industry leaders
Dateline: New Orleans, Louisiana—Here at the 16th annual Executive War College (EWC) on laboratory and pathology management, a crowd of record size has gathered to learn the latest trends in the clinical laboratory testing marketplace, and to hear about innovations and new management breakthroughs, as shared by top-performing medical laboratories.
As your Dark Daily editor, this is my first EWC. Readers of Dark Daily’s ebriefings (darkdaily.com) know me from my articles on the website. I’ve learned much about clinical laboratories and anatomic pathology groups since joining The Dark Group last year. And though my editorial background includes a recent six-year stint as Editor of Health Management Technology magazine, I was nevertheless impressed by the depth of information being offered at EWC. It is why this is truly the “must attend” conference for lab managers and pathologists.