NEW YORK (360Dx) – Eric Liston worries a lot these days.In fact, the assistant vice president of laboratory services at Intermountain Health System said something's been weighing heavily on his mind for some time."I've aged a whole bunch in the last year," he said.At the beginning of next year, federal legislation called the Protecting Access to Medicare Act, or PAMA, will take effect, resulting in cuts in reimbursements to clinical laboratories on a scale that the industry has rarely, if ever, seen.When it does, labs like Intermountain will see a reduction in reimbursements for some test procedures of up to 10 percent for each of the first three years after implementation, followed by reductions of up to 15 percent for each of the next three years.All clinical labs in the US — from the largest reference labs to hospital labs to physician-practice labs — will be touched by the changes to varying degrees, and as the clock continues ticking, anxiety about its implications is widespread throughout the industry.Even for the largest labs, like Quest Diagnostics and Laboratory Corporation of America, which may see some benefits from PAMA, the legislation is not without its concerns.But because of their size, they will be able to better absorb cuts in reimbursements.
When the dust settles, what results may be a market with fewer independently operated small and regional labs, as well as fewer outreach labs that are owned by hospitals.Instead, such operations could become part of Quest's and Lab Corp's networks.Together, the two already have about a 27 percent share of the $50 billion clinical lab market, measured by revenues, according to Barclays analyst Jack Meehan.By volume, they own an even bigger slice of the pie, 45 percent.
Consolidating clinical services comments
How Consolidation Is Reshaping Health Care HFMA
Apr 20, 2017. Although instances of clinical integration have demonstrated strengthened ability to manage patient health across the care continuum, there are concerns. Mergers. “This partnership exemplifies the renewed collaboration between once-distinct verticals within the healthcare services space,” Singh says.…
Pulling the Pieces Together Consolidation and. -
Recent Changes in Service Line Centralization and Consolidation. Issue Brief by Gloria J. Namely, the extent of service integration that exists as we look across the hospital industry is much lower than we. especially private rooms, and to restructure capacity so that new clinical and information technology can be.…
Core planning concepts for lab consolidation Health Facilities.
Aug 2, 2017. Teams assembled by health care organizations to look at all system costs to root out inefficiencies may find a big target in clinical laboratory services. However, while bringing lab services from around the system into one location is an obvious solution, little about the process of doing so is obvious.…
A model for consolidation of clinical microbiology laboratory services.
Clin Leadersh Manag Rev. 2004 Jul-Aug;184211-5. A model for consolidation of clinical microbiology laboratory services within a multihospital health-care system. Carter E1, Stubbs JR, Bennett B. Author information 1Department of Pathology, University of South Alabama, Mobile, AL, USA. To determine the.…
Consolidation of the Microbiology Laboratory Services A Mini.
Sep 21, 2015. Research suggests that consolidation of clinical microbiology services can produce significant financial savings without compromising efficiency or quality of service.7 The restructuring of laboratory services at Detroit Medical Center, for example, improved productivity to 13% higher than that of its peer.…