| 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.
INTELLIGENCE: Late & Latent
GENOME PROJECT
ADDS 3 COMPANIES
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