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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Charles Roussel Selected as New Executive VP for College of American Pathologists

Major changes may soon be unfolding at the College of American Pathologists (CAP), based in Northfield, Illinois. On October 30, CAP announced that Charles Roussel would be its new Executive Vice President. In this role, Roussel is responsible for daily operations at CAP and he reports directly to CAP’s Board of Governors. But that’s just the starting point for this story.

Roussel is an organizational change agent. He has actively consulted with corporations in such industries as electronics, high tech products, and telecommunications. That means Roussel is likely to bring a decidedly non-healthcare perspective, as well as a pro-active mindset, to the strategic direction of the College of American Pathologists.

Roussel comes to CAP from The Atlantic Philanthropies, a $300 million non-profit organization. Earlier, he served for many years at Accenture, a major consulting firm. While at Accenture, Roussel led the Global Thought Leadership Program and was a partner with the Accenture Strategy Competency. Accenture described Roussel’s expertise as including “channel management, organizational design, strategic change management, mergers, acquisitions and alliances.”

These skills are sorely needed at the College. Over the past two decades, CAP found itself challenged on multiple fronts as the pace of change in healthcare accelerated. For example, since the adoption of DRGs by Medicare in the early 1980s, the College has struggled to craft an effective strategy to protect and enhance reimbursement for clinical pathology professional services. That area of pathology services and income continues to be attacked, particularly by private payers and hospital/health system administrators.

In recent years, this same pressure on clinical pathology professional service reimbursement has expanded into anatomic pathology (AP) professional services. Since 2003, the AP marketplace has seen the emergence of anatomic pathology condominium laboratory complexes (AP condo labs or “pod” labs), as well as numerous TC/PC schemes that permit specialist physicians to capture for themselves revenue from AP services provided to their patients. During this same period, competition for pathology specimens intensified as both the two blood brothers-and a growing host of regional and national pathology lab companies-sent sales reps into communities across the country to divert specimen referrals away from community hospital-based pathology groups.

However, the greatest challenge for the College of American Pathologists is not in countering the multiplying threats to the integrity and financial stability of the pathology profession as a medical specialty. The greater challenge is in crafting a strategy to favorably position pathology in the fast-approaching age of genetic medicine. Genetic testing represents the single greatest opportunity for pathology specialty in the past four decades. Here is where Roussel’s talents, experience, and insights may serve the members of the College best. Anticipating the future and positioning this organization to be the right resource for that future will require special leadership skills.

Finally, it must be noted that, among all the medical specialties, pathologists have a reputation for being extremely cautious when evaluating new business options. They are frequently reluctant to change the status quo in most areas of their private practice setting, whether it be expanding the test menu or making investments in their own medical practice. This reluctance to change means that, during the past 20 years, CAP’s membership has chewed up and spit out more than a few accomplished change agents. That includes a number of visionary pathologist-leaders who were unable to gain sufficient traction with their peers.

Thus, from the start of his tenure, it should be recognized that new Executive Vice President Charles Roussel faces what might be aptly characterized as a “Sisyphean” task. His success will come as much from his ability to persuade CAP’s member pathologists to embrace and execute daring new organizational strategies as it will come from the unique and market-appropriate strategies he may develop.

It is notable that the College of American Pathologists went outside healthcare to tap someone with Roussel’s qualifications. This step could turn out to be a positive gamebreaker for the pathology profession by helping it craft an essential role in the coming age of genetic medicine and integrated healthcare.

Related Information:
College of American Pathologists Selects Charles Roussel as Its New Executive Vice President

CMS Approves Norwegian Company for Hospital Accreditation in the U.S.

When it comes to hospital accreditation, the Centers for Medicare and Medicaid Services (CMS)  recently disrupted the status quo in at least three ways. First, last month it approved Norway-based Det Norske Veritas (DNV)  as a hospital accreditation program in the United States. Significantly, this is the first new hospital accreditation organization in the U.S. in 40 years.

Second, by taking this action, CMS is bringing the hospital industry closer to the use of ISO 9001 quality management systems. That’s because Det Norske Veritas, which already accredits hospitals in several countries worldwide, bases its accreditation process on use of ISO 9001. It has also created a program that combines the CMS “Conditions of Participation” with the ISO 9001 quality management system. DNV calls this program the “National Integrated Accreditation for Healthcare Organizations  (NIAHO).” At least 22 hospitals in the United States have already earned accreditation using NIAHO.

Third, by granting deeming status to DNV, CMS has introduced a new competitor for accreditation business into the U.S. marketplace-one that incorporates its accreditation standards on the ISO 9001 quality management system (QMS). Dark Daily predicts that it won’t take long for the Joint Commission to respond to this new competition by introducing an accreditation program that is also based on a quality management system like ISO 9001.

One U.S. hospital that has worked with Det Norske Veritas since 2005 is Newport Hospital in Newport, Rhode Island. During this time, the 120-bed community hospital has been surveyed four times by teams from DNV under its NIAHO program. Early in 2008, Newport Hospital was also surveyed by the Joint Commission and CMS, giving it a unique perspective on the similarities and differences from each of these survey programs. According to Terry McWilliams, Vice President of Medical Affairs at Newport Hospital, “They [Det Norske Veritas] consistently look for system-related issues and overall process improvement.” He further stated that the DNV survey, as conducted in his hospital was “clearly never inferior to our experience with any other agency-and at times superior! They really objectively look at your processes and how you might be able to improve them to get to that next level.”

For regular subscribers and readers of Dark Daily, these new developments are consistent with the healthcare trend of incorporating quality management systems, such as ISO 9001 and ISO 15189 Medical Laboratories, into the operation of healthcare organizations. It was in September that Dark Daily reported that the first two American laboratories were closing in on their ISO 15189:2007 accreditation. Piedmont Medical Laboratory (PML) of Winchester, Virginia, and Avera Health Laboratories of Sioux Falls, South Dakota, are in the process of completing the final steps required to earn accreditation under ISO 15189:2007. Each laboratory is using the College of American Pathologists (CAP) as its ISO 15189 accrediting body. (See “Two Labs in Friendly Race to Win First ISO 15189 Accreditation in U.S.“)

Related Information: