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R. Lewis Dark: Hospital Labs Produce Moderate Cost Increases
The lab services cost increase was less than diagnostic imaging (up 36%), operating rooms (up 32%), intensive care (up 27%), medical supplies (up 26%), and even drugs (up 22%). The information was produced by Solucient, one of the nation's more respected healthcare consulting firms. The database tapped by Solucient included 20 million discharges per year from nearly 2,500 hospitals.
I can make a couple of important observations from this information. First, pathologists and lab directors in the nation's hospitals are doing an excellent job of controlling costs, harvesting efficiencies, and judiciously introducing new diagnostic technologies. The comparative data from other hospital services bear this out.
Second, I find the diagnostic imaging cost increase to be significant. At 36%, it rose at twice the rate of laboratory testing over the same time period. I can speculate that two interesting factors might be at play. For example, could the economic effectiveness of new diagnostic assays be significantly better than the economic effectiveness of new diagnostic imaging procedures? If this is true, comparative advantage will accrue to anatomic pathology and clinical laboratory services.
Or could the dramatic costs of diagnostic imaging in hospitals during the 2000-2002 period be attributed to increased utilization—utilization driven by incentives that encourage radiologists to order more procedures because of beneficial reimbursement? Like many of you, I am picking up lots of comments in the healthcare press about concerns that physician groups establishing their own radiology and imaging services are driving utilization rates—and the amount reimbursed for imaging services—through the roof. Both public and private payers are starting to zero in on this problem. That can only end up badly for radiologists.
However, lab medicine seems to be facing a brighter future. Solucient's findings provide solid evidence that pathologists and lab managers are ahead of their peers in controlling costs. That bodes well for the future.
Memphis Path Lab JV Purchased By AEL
Hospital lab-commercial lab joint venture
ends with sale to American Esoteric Labs
CEO SUMMARY: Memphis Pathology Labs' two hospital owners and their JV partner, MDS, surprised many with the sale of the lab venture to American Esoteric Laboratories (AEL). It's the end of a successful joint venture between several hospitals and a commercial laboratory company. It also positions AEL to use Memphis as a base to market its reference and esoteric tests to hospitals and physicians' offices.
Going, Going, Soon Gone:
MDS Pulling Out of U.S.
17-year affinity for lab joint ventures not enough
to justify continued development of new projects
CEO SUMMARY: Even as the best of its lab testing joint ventures with hospitals and health systems prove profitable, MDS Diagnostic Services is taking active steps to resolve its participation as a partner. In a candid interview, its President and CEO acknowledged the best attributes of such joint ventures and identified specific business dynamics which challenge laboratory firms seeking to create such joint ventures.
Lab Crisis Planning: Anatomic Path Lab Weathers
Florida's Blitz of Hurricanes
NEWSMAKER INTERVIEW: Measuring Daily Productivity
Pathologist productivity is becoming a key factor in competitive success
CEO SUMMARY: Productivity measurement systems are widely used outside the healthcare industry to better manage operations and to incentivize staff. Many pathology groups have a gnawing feeling that they should be looking at performance in ways beyond accounting numbers alone. In Part Two and Part Three of our series on measuring pathologist productivity, The Dark Report interviews Dennis Padget of DLPadget Enterprises, Inc., based in Simpsonville, Kentucky. Padget, recently retired, is a pathology practice consultant His advice and insights on the"do's and don'ts" about establishing a measurement system to evaluate the productivity of pathologists are rooted in four decades of experience. Editor Robert L. Michel conducted the interview.
Dark Index: TriPath Imaging and Ventana
Sign Major Development Pact
Goal is to marry Ventana's specimen processing
products with TriPath's imaging systems
Lab Industry Briefs: TriPath Imaging and Ventana
Sign Major Development Pact
LabOne and Humana
Ink National Contract
For Lab Services
2nd Maryland Lab Closes, 3,000 Patients to Be
Retested for STDs
INTELLIGENCE:
New Microscope
Uses Laser light
To View Uncut Tissue
NCCLS with New Name,
New Executive VP
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