However, medical laboratory billing/collections is often weak, even at top-performing outreach programs
If there is one bright spot in the revenue picture for many hospitals and health systems, it is how well-run hospital laboratory outreach programs produce strong growth in net revenue and contribution margin. Because of double-digit growth rates for outreach and outpatient procedures, clinical laboratory programs that target office-based physicians can produce impressive results.
“In our annual survey of hospital and health system laboratory outreach programs,” a significant number of participating hospitals report very strong rates of growth in specimen volume and net collected revenue,” stated Kathleen Murphy, Ph.D., who is CEO of Chi Solutions, Inc., based in Ann Arbor, Michigan. “We are regularly surprised at how many of these better-performing hospital lab outreach programs are growing at rates of 12% to 25% per year, sustained over three to more consecutive years. (more…)
Lab-savvy lawyers tackle overlooked issues involving non-compete covenants, protection of client lists, and effective partnership agreements
Unbeknownst to many owners of clinical laboratories and pathology groups, several developments have created new risks for the most important business assets of these organizations. Experts involved in legal and financial consulting for laboratories advise their clients to take definitive steps to prevent direct loss or any significant erosion in the value of these valuable business assets.
Too often, laboratory owners and the pathologist-partners of group practices find the value of their business needlessly reduced because they failed to take simple—but necessary—actions to fully protect their assets. That is not surprising, because many of a laboratory’s highest-value assets are represented by contracts with employees and partners, agreements on trade secrets, non-compete covenants with executives and sales representatives, and even something as basic as employee handbooks.
Innovative hospital labs are creating collaborative project teams to help clinicians improve their utilization of blood products
If there is a guaranteed budget buster for clinical pathology laboratories in the United States, it is the steady and rapid growth in the cost of blood products. Some hospital laboratories report that the basic cost of blood products has doubled in recent years!
For this reason, transfusion medicine and blood banking functions are now a high-profile target for cost-cutting and aggressive management by pathologists and clinical laboratory managers. “The issues are familiar to all hospital laboratories,” stated Timothy Hannon, M.D., MBA , who is an anesthesiologist and President of Strategic Healthcare Group, LLC, in Indianapolis, Indiana. “The dramatic upward spiral of price increases for blood products in recent years is a major problem for hospital laboratories.
Pathologists find new Part A contract model creates added value for hospitals
Now pathologists have a new approach to reverse the trend for hospitals and health systems to pay even less for Part A pathology professional services. Innovative pathologists are crafting what they call a “performance-based Part A Support” agreement that adds new value for the hospital, along with additional compensation for the pathologists.
For pathologists, this is a major breakthrough in stabilizing and increasing hospital compensation for these important services. After all, for most of the past decade, many hospitals arbitrarily cut reimbursement for Part A pathology professional services—even as these hospitals held pathologists to ever-higher standards, including improved patient outcomes and more resources devoted to patient safety in the hospital’s clinical laboratory.
Your lab’s oldest Baby Boomer managers are turning 62 and thinking about retirement!
There’s a ticking clock in your lab: the fast-approaching retirement of your best section managers, department heads, senior administrators, and pathologists! Yet there is still time for your lab or pathology group to address important succession planning opportunities.
“Every day, about 8,760 Baby Boomers turn 62 and become eligible for their social security benefits,” observed Jeff Smith, Vice-President of Leadership Development at Slone Partners.