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       Headlines - July 28, 2008
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R. Lewis Dark: Lab Testing Hits Two Home Runs For Patients

MANY OF US POINT OUT THAT LABORATORY MEDICINE is an undervalued and under-utilized asset within the American healthcare system. Lab testing is generally a minimal cost relative to the total episode of care, yet lab testing provides essential knowledge to help clinicians make a quick, accurate diagnosis and confidently select appropriate therapies.

Like the late comedian Rodney Dangerfield,many lab directors and pathologists feel like "I don’t get no respect!", particularly when negotiating contracts withmanaged care plans. Seldomis the true value of laboratory testing acknowledged by payers, particularly in the form of adequate reimbursement.

However, this situation may be on the verge of changing. In this issue of THE DARK REPORT, we provide intelligence briefings on two important home runs hit by laboratories during the past 24 months. First up is our coverage about the explosion in vitamin D testing. Labs across the country are reporting that vitamin D test volumes have doubled and tripled over themost recent 12months! ARUP Laboratories tells us that about one-third of the vitamin D test results indicate that the individual is vitamin D-deficient. This fact is evidence that physicians are using the test appropriately. (See pages 3-5.)

That remarkable lab testing home run is followed by the story of another, even * more amazing lab testing home run. At Washington Hospital Center (WHC) in Washington, DC, a rapid PNA FISH test for bloodstream infections, combined with real-time results reporting to the attending physician, has contributed to an 83% drop in patient mortality in ICU settings—and a 53% overall reduction in patient mortality related to bloodstream infections! (See pages 6-9.)

The unique twist to the WHC experience is that these dramatic reductions in patient mortality only came after the procedure for reporting the PNA FISH tests was changed to incorporate a personal phone call to the attending physician, to ensure he/she got the results in real time. Now comes the next challenge for the lab industry. Will Medicare and private payers recognize this value provided by labs to their referring clinicians?

Will Medicare and private payers establish reasonable reimbursement for these testing services? Too often in the past, payers publicly promote the importance of patients getting these tests, while, in private, they excoriate labs for not controlling test utilization and financially penalize them for the higher volume of testing that was performed.



Vitamin D Test Volumes Doubled in Past Year

Growing awareness about vitamin D deficiency causes patients and physicians to order more tests

CEO SUMMARY: Across the nation, labs report a near doubling in the volume of vitamin D tests they are performing. This is a success for laboratorymedicine and an appropriate use of diagnostics tests as physicians strive for early detection and early intervention of vitamin D deficiency. However, the next chapter in this story will be equally important. Will Medicare and private payers recognize that, per evidence-based medicine guidelines, this testing is justified and labs should not be punished for increased utilization?



53% Drop in Mortality From Lab Report Change

Study links use of rapid molecular test and real-time results reporting to improved outcomes

CEO SUMMARY: At Washington Hospital Center, it was unclear if the use of a rapid molecular assay for blood infections was changing outcomes until a new, real-time lab results reporting protocol required the lab to deliver the test results personally to the attending physician in real time. A study with a control group provided convincing evidence that use of the rapid molecular test, in combination with real time test reporting,may be associated with dramatic reduction in mortality and improved patient outcomes.



NEWSMAKER INTERVIEW: Labs Should Build Payer Relationships To Improve Commodity Pricing

CEO SUMMARY: At the most recent Executive War College, Kerry Kaplan, President of Healthcare Connections in Natick, Massachusetts, discussed the results of his national survey of health plan executives on their attitudes toward clinical laboratories. It will be no surprise that these managed care executives consider lab testing services to be a commodity. What will be a surprise are Kaplan’s recommendations on how laboratories and pathology groups should develop partnerships with selected payers, rooted in added value services that generate ample reimbursement. In this first of a two-part series, Kaplan also delivers a dose of reality to laboratories as he advises them on how to prepare for the marketplace changes coming in the next five years.



CMS Anti-Markup Rules Target In-Office Ancillaries

Changes ahead for specialist doctors using TC/PC arrangements or operating AP labs

CEO SUMMARY: Medicare officials are again attempting to rein in what they consider to be potentially abusive forms of inoffice ancillary services, including anatomic pathology. Proposed new rules published this month would clarify and perhaps expand the application of the Medicare anti-markup for purchased diagnostic testing services and for diagnostic tests provided by an ordering physician or supplier, including the professional and technical components.


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