Threats to Profitability Causing Clinical Laboratories, Pathology Groups to Take on Added Risk by Entering into ‘Problematic’ Business Relationships and Risky Pricing Plans

Medical laboratory leaders urged to scrutinize pricing policies, billing decisions, and structural relationships that could trigger commercial payer and regulatory action Clinical laboratories and pathology groups face another blow to their financial health on January 1, 2018, when new Medicare Part B price cuts take effect. Faced with increasing competition and declining reimbursement rates for anatomic pathology testing, medical laboratories will begin 2018 with their profitability under...

‘Death by 1,000 Knives’ Could Be in Store for Clinical Laboratories, Pathology Groups Not Prepared to Comply with New Medicare Part B Regulations

Medical laboratory leaders and pathologists must be fully aware of the coming legal and regulatory changes taking place starting January 1, 2018, or risk fines and decreased reimbursements January 1, 2018, marks the start of new Medicare Part B price cuts for clinical laboratory  and anatomic pathology testing. But decreasing reimbursement rates is just one issue facing medical laboratory leaders. The other is the increasingly rigorous regulatory environment poised to ensnare labs and...

HITECH ACT Mandates New Patient Privacy Requirements on Labs and Pathology Groups

Labs Must Report Privacy Breaches of 500 or More to the Media Call it HITECH collides with HIPAA! Most pathologists and lab executives know that passage of the HITECH Act was the part of 2009’s American Recovery and Reinvestment Act (also referred to as “ARRA” or the “stimulus bill”). HITECH provides incentives for the expanded use of electronic health records by physicians and other providers. But what is lesser known is how the HITECH Act creates new legal obligations of covered entities and...

Laboratory/Pathology Mergers & Acquisitions: Buyers Still Quite Interested

What is my lab worth? That’s the question every laboratory seller wants to know! Despite an economy in recession, laboratory buyers remain bullish on the financial fortunes of clinical laboratories and anatomic pathology companies. The lack of publicly-announced acquisitions during 2009 masks the fact that lots of conversations are happening between lab buyers and lab owners. Why such interest? On the buyer side, private equity companies and buyers are convinced that the demographics of...
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