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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Across Canada, Clinical Pathology Laboratories Are Adopting Different Operational Models to Deliver More Value to Clinicians

Because of successive decreases in budgets for clinical laboratory testing, many Canadian medical laboratories are engaging their staffs to innovate and introduce new value-added testing services

TORONTO, ONTARIO, CANADA—Traditional operational and business models for clinical laboratory testing are under siege here in Canada, just as they are in other developed nations across the globe. That was one important trend identified by multiple speakers at Executive Edge 2013, that took place Monday and Tuesday of this week.

During Monday morning’s opening session, a common point of emphasis was that simply consolidating specimens into large medical laboratory facilities as a way to achieve economies of scale and lower the average cost per test is fast becoming obsolete. All pathologists and clinical laboratory managers understand why this is true: payers can lower reimbursement for lab tests faster than labs can cut the costs of performing those tests. (more…)

Canada’s Clinical Pathology Laboratory Leaders to Discuss Trends of Lab Consolidation, Care Integration, and Genetic Testing during a Time of Shrinking Lab Budgets

Across the nation, resources to support medical laboratory testing are dwindling even as physicians order more tests and labs must spend to acquire new diagnostic technologies

Canada’s clinical laboratory testing marketplace has just undergone another wave of consolidation among independent medical laboratory companies that has eliminated major lab test providers in the provinces of Ontario and British Columbia.

But that’s just one trend in a nation where successive budget-cutting initiatives continue to whittle down and shrink the nation’s clinical laboratory testing infrastructure.

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In Canada, Clinical Pathology Laboratories Face Growing Lab Test Utilization and Shrinking Lab Test Budgets

DATELINE: Toronto, Ontario, Canada—This week, clinical laboratory and pathology leaders from across Canada gathered here at the fifth Executive Edge conference to assess the state of medical laboratory testing in Canada’s different provinces. One message in the provocative sessions was clear and consistent; ever more volumes of lab testing will continue to hit clinical laboratories, even as provincial health authorities squeeze lab testing budgets in coming years.

It means that, going forward, clinical laboratories in Canada will be asked to perform growing numbers of tests without a comparable increase in lab budgets or reimbursements. Most speakers recognized this primary trend. In her presentation, Tammy Hofer, Vice President of Laboratory Services for the Alberta Health System, observed that the number of medical laboratory tests performed across the province is increasing at approximately 6% per year. In the province, there are 133 clinical laboratories and they perform approximately 60 million tests per year for Alberta’s population, which currently numbers 3.7 million people.

Another speaker during Monday’s sessions that tackled the subject of growing utilization of clinical laboratory testing was James Tucker, Principal of the Boston Consulting Group. Tucker is based in Toronto. He described the medical laboratory testing industry as a “burning platform” because the demand for lab testing will continue to outpace payment and funding paid to the labs which perform this testing.
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