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      Headlines - May 30, 2005
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R. Lewis Dark: Laboratories Lead Healthcare on Quality Systems

IS THE REST OF HEALTHCARE CATCHING UP TO THE LABORATORY INDUSTRY when it comes to the use of quality management systems like ISO-9000, Six Sigma, and Lean? In the May 2, 2005 issue of Modern Healthcare, there's a major story on quality management systems and how some hospitals are using same to drive major improvements in performance.

For clients and regular readers of THE DARK REPORT, this is old news. Since our founding in 1995, we've been first to report on the substantial benefits accruing to labs which first pioneered the use of quality management systems. It was 1998 when we were the only lab industry source to announce the ISO-9000 certification of Quest Nichols Institute (San Juan Capistrano, California) and provide details of specific benefits generated by this laboratory's adoption of ISO management precepts.

The laboratory industry should be proud of the fact that it is ahead of the hospital industry in accepting quality management systems. These are the management tools which will enable pathologists and laboratory managers to better meet the challenges of falling reimbursement and the need to raise the quality of health outcomes.

For those who don't know, Modern Healthcare can be described as a"U.S. News & World Report" weekly magazine for healthcare executives. It is widely-read by hospital administrators. I say this for a reason. As I read Modern Healthcare's story about quality management systems in hospitals, I was struck by the reporter's tone. Instead of highlighting the major improvements in operations, clinical outcomes, and productivity enjoyed by the handful of hospitals now utilizing Lean, Six Sigma, ISO-9000, and other systems, the reporter chose to characterize the champions of such quality initiatives as"enthusiasts."

The story conveyed an impression that Lean and Six Sigma practitioners in hospitals were"outside the mainstream" because of their energy and enthusiasm. I strongly disagree with this perspective. I hold firm convictions that Lean/Six Sigma-types of management philosophies are poised to trigger radical evolution in healthcare. Modern Healthcare's willingness to under-emphasize the powerful potential of these quality management systems might be considered a sign that it believes many hospital administrators are still unprepared to accept quality management systems as a credible tool for their institutions.



Lab Innovators Point Way At Executive War College

Emerging trends point to more emphasis on lab service quality & physician satisfaction

CEO SUMMARY: Now in its tenth year, this Executive War College attracted a record crowd, including laboratory leaders from Europe, Africa, South America, and Asia. The unexpected finding was that, along with the growing acceptance of Lean, Six Sigma and other quality management systems by the nation's first-rank lab organizations, assertive surveying of physician and patient satisfaction is driving strategic progress.



Carilion Health Acquires Chi Lab Consultancy

Both buyer and seller are implementing new business strategies with this transaction

CEO SUMMARY: In selling Park City Solutions Laboratory Services Group to Carilion Health System, Park City Solutions is returning to its core competency in healthcare information technology consulting services. For Carilion Health System, this acquisition puts it firmly in the national lab consulting service arena. Carilion will operate its laboratory consultancy in total independence of its existing lab services division.



Phlebotomists in California Undergoing Certification

Get ready for new professional acronyms; CPT 1, CPT 2, LPT to be in lab lexicon

CEO SUMMARY: State certification of phlebotomists is under way in the Golden State. By April 9, 2006, all plebotomists in California will need to maintain state certification. This development adds complexity to laboratory management in California. However, there are no signs that other states intend to follow California's lead in requiring certification of phlebotomists.



For Molecular Tests, Evaluate All Factors

Changes in test specificity are likely to be noticed by clinicians

CEO SUMMARY: When this hospital lab adopted molecular screening tests for Chlamydia trachomatis and Neisseria gonorrhoaea, physicians soon noticed a change in the rate of false positives. In researching the performance of the molecular assays compared to cultures, pathologists at this laboratory gained a better appreciation of how the introduction of a new molecular assay may disturb clinicians' practice patterns.



LIS Market Evolving To Serve New Needs

Changes, pressures on labs are driving decisions on new lab information systems

CEO SUMMARY: Ongoing reimbursement declines, coupled with other key factors, are pushing labs to seek new capabilities for their laboratory information systems (LIS). Another influence is the growth of molecular diagnostic programs in hospital labs. Molecular testing places unique demands on an LIS, which may further motivate labs to acquire newest-generation IT solutions versus upgrading existing LIS installations.


Urology Revenue Loss Drives AP Lab Condos

Medicare reductions for urology services took effect on January 1 of this year

CEO SUMMARY: Urologists are motivated to operate anatomic pathology laboratory condominiums as a way to replace lost income after Medicare imposed a major reimbursement cut for a key urology procedure. Capturing revenue from ancillary services is a hot topic within the urology profession. Here are details about this exploding trend and why there is interest in anatomic pathology services.


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