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R. Lewis Dark: Using Laboratory Informatics to Add Value
IN THIS ISSUE, YOU WILL READ ABOUT THE SALE of Spectrum Laboratory
Network and the ongoing integration of laboratory services at Geisinger
Health System. Although, on first reading, it may seem that these two stories
are unrelated, I would like to call your attention to a common attribute
that underpins the success of these two laboratory organizations.
Both Spectrum and Geisinger's laboratory division share a business
strategy of using sophisticated information technology to support the
clinical needs of the physicians they serve. In the case of Spectrum, the
laboratory company offers office-based physicians an increasinglysophisticated
informatics platform for lab test ordering and results
reporting. It continually adds functionality to this system and supports an
expensive field force of IT installers and field service reps. When
Spectrum gains a new client account, it typically takes only 48 hours for
this service team to install the system and have the office staff trained.
At Geisinger, the situation is different, since it is a self-contained integrated
delivery network (IDN) and owns hospitals, clinics, and other
facilities. To serve this environment, Geisinger's laboratory division has
proactively worked to drive operational and informatics integration to a
deep level. As you will read on pages 9-14, it is that ability to capture
point-of-care test (POCT) results from any part of the Geisinger system
that makes it world-class in this attribute.
In both lab organizations, the strategy of deploying sophisticated
informatics to support the clinical needs of physicians is paying off. At
Spectrum, its revenue growth for outreach testing has averaged a compound
rate of 27% over the past four years. At Geisinger, the laboratory
uses its informatics capabilities to support important initiatives in physician
pay-for-performance, to support adherance to clinical practice
guidelines, and to provide an information-rich lab test data base to help
advance Geisinger's efforts in the field of evidence-based medicine.
The sustained successes of both laboratory organizations in their respective markets validates a longstanding prediction we've
been making on these pages: in healthcare's next cycle of evolution, the lab industry's winners will be those laboratories which offer sophisticated information services to clinicians.
Spectrum Lab Network Is Sold to Equity Investor
One of three original health system owners continues to hold equity in new company
CEO SUMMARY: Timing of the sale of Spectrum Laboratory
Network to Apax Partners, L.P. was unexpected, but it's
been known for some time that the fast-growing regional
laboratory was entertaining purchase offers. Under new
ownership and with ready access to ample capital,
Spectrum is optimistic that it can sustain its rapid rate of
growth while maintaining above-average profit margins.
Private Equity Firms: Ready to Buy More Labs?
Acquisition of Spectrum by Apax Partners is sign of heightened investor interest
CEO SUMMARY: Times are good in the laboratory industry. At
least that's the opinion of a growing number of professional
investors. They are searching throughout the country for laboratories
to acquire. They are motivated by the consistent financial
performance of many lab companies, both public and private.
Another message from the Spectrum sale is that hospital
laboratory outreach programs have great potential.
Regulatory Update: Congressional Bill Introduced
On Cytology Proficiency Testing
Proposed legislation would enact one-year suspension of current cytology PT program
Lab Integration At Geisinger Contributes to Better Outcomes
ADVANCED LAB INFORMATICS THAT SUPPORT CLINICAL GOALS
CEO SUMMARY: There's been two benefits from
the use of sophisticated laboratory informatics at
the laboratory division of Geisinger Health System
in Danville, Pennsylvania. Benefit one is a standardized,
fully-integrated lab information system
that collects all lab test results, including point-ofcare,
into a single data repository that feeds
Geisinger's electronic medical record. The second
benefit is how this enriched lab informatics capability
is supporting Geisinger's new bio-repository.
Payers Begin Speeding Up Payment to Physicians
"Swipe card" readers, similar systems to help physicians collect more dollars from patients
CEO SUMMARY: Labs and pathology groups have always
found it tough to bill patients and collect a high proportion of
those obligations. That situation is about to change, and fast!
Payers recognize that, as more consumers are required to pay
higher deductibles, co-pays, and out-of-pocket expenses, they
will have to offer physicians and other providers near-real time
services to verify eligibility and settle claims.
INTELLIGENCE:
LAB RECRUITERS SOON TO HAVE WEB .JOBS SUFFIX
FDA CLEARS POCT
DRUGS-OF-ABUSE KIT
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