| R. Lewis Dark:
EMR Links as Labs' Next Competitive Advantage
WE ARE CAREFULLY TRACKING THE ACCEPTANCE AND USE of electronic medical
record (EMR) systems by office-based physicians. It is an important trend, one
that is both an opportunity and a threat for regional laboratories.
As you will read on pages 3-6, once physicians install and begin to use EMR
in their daily practice, literally the first ancillary service they want is a direct
electronic feed of laboratory test results into the EMR. Then, as physicians
grow familiar with working with the EMR, they next want the ability to electronically
order tests from their EMR.
It is no surprise, then, that independent labs and hospital laboratory outreach
programs are beginning to spend money to create electronic interface
gateways between their laboratory information system (LIS) and the EMRs of
their physician-clients. The depth and breadth of this trend was confirmed at
the special LIS-EMR Interface Gateway program at the Executive War College
last May in Miami.
This presents an opportunity for regional labs. As clients implement an
EMR, the laboratory provider must be ready to create the electronic bridge
that allows the seamless transmission of laboratory orders and lab test results
back and forth between the EMR and the LIS. As labs succeed in this, they have
a strengthened relationship with each client—a relationship that adds value to
the physician and makes it tougher for competing labs to win that account.
The threat is simple. Failure by regional labs to respond to clients' needs for
direct EMR-LIS ordering and results reporting will cause the client to seek
another laboratory which can provide such electronic interface gateways.
There are two labs in the United States which understand this fundamental
strategic shift: Laboratory Corporation of America and Quest
Diagnostics Incorporated. As one software wonk told us, “The two national
labs are all over this right now—integrating their LISs to EMRs.” In fact, this
is a perfect example of how economies of scale and national reach provide the
two blood brothers with competitive advantage. Each national lab has ample
resources to invest in writing the code to connect their informatics systems to
every major EMR vendor's product. Regional labs should pay heed to this
strategic shift in the marketplace. Because the largest medical groups are first
to implement EMRs, it is the regional labs’ biggest clients who will be first to
ask for direct LIS-EMR lab ordering and results reporting.
Getting Connected: Labs
Find Value in EMR Links
Early adopter labs are using LIS-EMR links
to forge tight business relationships with clients
CEO SUMMARY: As physicians deploy electronic medical record (EMR) systems, they quickly ask their laboratory for electronic results reporting directly into the EMR. Later, these doctors
will ask for electronic test orders from their EMR. Savvy labs are
using this opportunity to develop closer business relationships
with their clients. Two experts in the EMR field offer insights
about how to succeed with this strategy.
Michigan Derm Convicted
On 31 Fraud Charges
At trial, federal prosecutor opts not to pursue
35 counts relating to fraudulent billing of lab tests
CEO SUMMARY: Last year, dermatologist Robert W. Stokes,
D.O., of Grand Rapids, Michigan, was indicted by the federal
government for 72 counts relating to various offenses, including
upcoding, and improper coding. Of this total, 35 counts against
Stokes involved his billing payers for laboratory tests he did not
perform and laboratory services that he did not render, in violation
of Title 18, United States Code, Section 1347.
Lab Billing Indictments
Underscore Docs’ Risks
Dermatologist's federal indictment and court trial
for fraudulent lab billing is another warning
CEO SUMMARY: Physicians should consider the precedent
established recently when the U.S. Attorney for the Western
District of Michigan obtained a 72-count indictment against a
local dermatologist, including 35 counts of submitting fraudulent
claims for lab tests he did not perform, as well as laboratory
services he did not render. One legal expert considers this federal
indictment to be a significant development.
Path Group Responds to
FBI Visits in Stokes Case
Dermatopathology lab chooses to cease
deeply discounted client billing after FBI visits
CEO SUMMARY: As the FBI launched its investigation of
fraudulent billing by Michigan dermatologist Robert W. Stokes,
D.O., two years ago, staff at several pathology labs found themselves
"up close and personal" with federal healthcare fraud prosecutors.
One pathology lab, based on what it learned, decided to
revamp its compliance program. It ceased deep discounts on
client bill accounts and moved its prices closer to Medicare fees.
Are Feds Ready to Strike
at TC/PC Arrangements?
CMS proposes new rules for comment and
sends a message on ancillary services schemes
CEO SUMMARY: Pathologists and laboratory directors will
want to pay attention to the proposed rules published by the
Centers for Medicare and Medicaid Services on July 2, 2007. The
document is a grab bag of proposals and rules that would significantly
curb many common ancillary services arrangements now
used by physicians to capture revenue. Diagnostic testing,
including both radiology and pathology services, were the subject
of several of the proposed new rules.
INTELLIGENCE: Late & Latent
PREDICTIVE MARKER
DISCOVERED FOR
PROSTATE CANCERUPDATE ON ROCHE BID
FOR VENTANA | 
