News, Analysis, Trends, Management Innovations for
Clinical Laboratories and Pathology Groups
Hosted by Robert Michel

News, Analysis, Trends, Management Innovations for
Clinical Laboratories and Pathology Groups
Hosted by Robert Michel
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Clinical Laboratory Companies, Hospitals, and Other Providers Preparing to Comply with FASB’s ‘ASC 606–Revenue Recognition Standard’

May 24, 2017 | Compliance, Legal, and Malpractice, Laboratory Management and Operations, Laboratory News, Laboratory Operations, Laboratory Pathology

All medical laboratory companies and hospitals following GAAP must comply as early as 2018 and 2019; revenue and profit impact can be either beneficial or negative

There is a big change coming to clinical laboratory companies, hospitals, and other providers that report their organization’s financial performance under Generally Accepted Accounting Principles (GAAP). Such organizations will need to assess their contracts in a different way to comply with the upcoming implementation of the Financial Accounting Standards Board (FASB) ASC 606: Revenue Recognition Standard.

Simply said, ASC 606 makes fundamental changes in the way all contracts must be analyzed and reported each quarter. Every lab company and organization that follows GAAP in their financial rules, and which is audited by an outside CPA firm, must comply with ASC 606. Moreover, when your lab company undergoes an outside audit, the auditor will verify that all contracts are being handled according to the requirements of the FASB ASC 606. (more…)

Entering the Clinical Laboratory Testing Business: Is it Better to Buy or to Build?

Sep 12, 2011 | Laboratory Management and Operations, Laboratory News, Laboratory Pathology, Management & Operations

For two decades, popular wisdom says “buy,’ but several entrepreneurs succeeded by building a brand new clinical lab company

Over the past 15 years, there have been few examples of pathologists and medical laboratory executives willing to start up a new clinical laboratory company from scratch. The popular wisdom says that this is a next-to-impossible task. The same popular wisdom says that buying an existing clinical laboratory company is the best way for entrepreneurs and new investors to enter the clinical lab testing marketplace.

In part, this explains why, since the mid-1990s, there are relatively few examples of a brand new lab company entering market with the goal of serving office-based physicians. It also explains why the majority of lab entrepreneurs and investors follow the business strategy of acquiring an existing laboratory company as their entré into the market. They then use this acquired lab company as the platform to grow. (more…)

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