|
R. Lewis Dark:
Pathology Clients Now Competing Against Pathologists
THIS ENTIRE ISSUE IS DEVOTED TO A SINGLE TOPIC: the exploding interest
by specialist physicians in establishing their own in-practice ancillary
service in anatomic pathology (AP). Once again, THE DARK REPORT is
first to provide the pathology profession with a concise and insightful
assessment of a disruptive trend.
I use the word"disruptive" for good reason. Pathologists are about to
confront a business nightmare as a significant segment of their customers
—primarily urology and gastroenterology groups—decides to enter the
anatomic pathology business themselves. As our editor points out,"anytime
a profession's major source of business and revenues decides to
compete against its supplier, that's a major development."
So far, this phenomenon is concentrated in certain regions of the
United States. For those of you working in those regions, it's likely that
you've already seen major urology and gastroenterology clients divert
their specimens away from pathology group practices in your community
and into their own in-practice ancillary AP service. It's likely that
these customer defections have had a serious impact on the financial viability
of the pathology practices which lost access to those specimens.
There are still areas of the United States where this trend has yet to
surface. For example, a pathology sales manager told me last week that,
after making a week's worth of calls on urology offices in Southern
California, she had heard no discussion of TC/PC arrangements or inhouse
AP labs. The situation is exactly the opposite in states like New
York and New Jersey, where many urology and GI groups are actively
involved in capturing at least some of the revenues generated by their
anatomic pathology case referrals.
Even if this trend were to be derailed, because of, say, legislative prohibitions
or actions by Medicare and private payers to prevent specialist physicians
from submitting claims for anatomic pathology services, I believe the old businessmodels in anatomic pathology are being permanently overturned.
I recommend that your pathologists and practice administrators carefully
study the business intelligence presented in this issue, then use it as
the basis for a strategic planning session. Timely preparation may help
your group save several important client relationships.
Office-Based Docs Want Anatomic Path Revenues
Why specialist physicians are eager
to bring anatomic pathology in-house
CEO SUMMARY: Specialist physicians think they've found gold in anatomic pathology services. In different regions of the United States, urologists and gastroenterologists are taking
active steps to cut themselves a piece from the anatomic
pathology revenue pie. Some physician groups are building
their own histology labs and hiring pathologists. Others are
entering into TC/PC arrangements as a way to make money.
Labs Taught Physicians
How to Do TC/PC Deals
National pathology companies used TC/PC
to capture accounts from physician groups
CEO SUMMARY: As many pathology groups discover that their best urology and gastroenterology clients are taking serious
steps to do their own anatomic pathology, they ask a basic
question: How did their best-referring clients suddenly
become motivated to get into the pathology business? The
answer is simple: in recent years, other labs have taught specialist
docs that anatomic pathology can be highly profitable.
TECH UPDATE: Merck's HPV Vaccine Cleared
For Use by FDA Last Week
It's the beginning of a new cycle of change in cervical cancer screening and treatment
Finding Opportunities
Within the TC/PC Trend
Despite the short-term loss of significant revenue,
pathology groups must consider long-term options
CEO SUMMARY: It is common for a pathology group to simply
say"No, we won't help" when it is asked by a specialist
physician group for help in establishing its own in-practice
ancillary service in anatomic pathology. After all, the pathologists
are losing a big chunk of their revenue, and helping a
client compete against them. However, here's one pathology
executive who recommends a different approach.
TC/PC: Pathology's Barn
Door Is Now Wide Open
Lab industry has taught its best customers how
to establish their own anatomic path business
CEO SUMMARY: There's a degree of irony in the current state
of affairs. When a handful of lab companies decided to hit
office-based urologists and gastroenterologists with the sales
tactic of a TC/PC arrangement several years ago, no one realized
the consequences of teaching these high-referring docs
that there could be substantial profit in anatomic pathology services.
Financial damage to the profession is just beginning.
Letters to the Editor: Technical/Professional Billing
Triggers Strong Opinions
INTELLIGENCE: Late & Latent
RAISING THE BAR FOR
LAB TESTING SERVICES
LAST CHROMOSOME
IN HUMAN GENOME
IS SEQUENCED
| 
