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      Headlines - December 22, 2003
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R. Lewis Dark: Welcome Back, Consumers!

During 2003, there was surprising progress in the movement to improve patient safety. Closely-connected to the patient safety trend are efforts to measure and make public the healthcare outcomes achieved by hospitals, physicians, laboratories, and other providers.

One reason why this movement is important is that it begins the process of restoring the consumer as the major decision-maker. Employers and payers want consumers to have ready access to information which shows which hospitals and physicians get better outcomes. As our clients and regular readers know, one big trend in health benefits is the move to consumer-directed health plans, with larger deductibles and out-of-pocket requirements.

I would think laboratory administrators and pathologists would welcome this development. For most of the 1990s, they had to deal with the gatekeeper HMO, which denied both the physician and the patient the ability to choose which clinical laboratory would serve them. Restoring consumer choice in laboratory services is a positive step for the laboratory industry.

So watch out for consumers! They will be back. Slowly at first, but in growing numbers as each year passes. Aging baby boomers are well-educated, like to control their healthcare decisions, and have plenty of money to spend for healthcare which they perceive best meets their needs.

What makes this consumer-driven powerful is that it has the support of the nation's largest employers. Many were sued by their employees when gatekeeper HMOs denied access to care. To avoid this legal liability, and to maintain a neutral role in providing health benefits, major employers are designing health benefit programs which give consumers more choice than at any time when fee-for-service medicine dominated the American healthcare scene.

Laboratories and pathology group practices should keep a close eye on the patient-choice trend and direct-access testing (DAT). Along with requirements to document improvements in patient safety and outcomes will come the need to provide consumers with laboratory testing services customized to their needs. I think labs will do much better when patients (and physicians) are encouraged to shop for laboratories and make their own decisions about who does their laboratory testing.



2003's Big Lab Stories Reflect Health Trends

During the past year, healthcare trends were the major agents of change

CEO SUMMARY: At a minimum, 2003 proved to be a year of relative stability for the laboratory industry, as demonstrated by THE DARK REPORT's "Ten Biggest Lab Stories of 2003." The year was free of industry-wide crises and scandals. That allowed most laboratory administrators and pathologists to concentrate on improving their laboratory operations and service menus.


LabOne Speaks out About Use of "Free Testing"

Letter to the Editor:


"New" Legal Landmines For Clinical Laboratories

Ongoing changes in liability, malpractice and legal risk require attention from labs

CEO SUMMARY: HIPAA is a big "new" source of legal exposure for laboratories and other healthcare providers. Also, recent court decisions and changes in clinical practices are adding to the legal risk for labs. Attorney Richard S Cooper offers insight on how laboratories can better protect themselves, along with specific strategies to use in negotiating better terms with managed care companies.


Abbot Acquires I-Stat, Resolves FDA Problems

Last Week's announcements at Abbott Labs represent major milestones in its diagnostic unit

CEO SUMMARY: On December 15, Abbott revealed that it would pay $392 million to acquire I-Stat. Days later, on December 18, Abbott disclosed that the FDA had deemed its Lake County, Illinois diagnostic manufacturing plant to be "in substantial conformity" with the Quality System Regulation. Abbott can now restart manufacturing and sales of test kits that had been taken off the market in 1999.


Who's Buying Labs? Activity Shifts Down

Remaining independent labs doing well, few sales of anatomic pathology practices

CEO SUMMARY: As the number of independent clinical laboratories dwindles, most remaining owners seem content to continue building their business—at least until a buyer makes them an offer"they can't refuse." Acquisitions of pathology group practices were also few in number during 2003. However, the reduced number of labs in the United States is causing some local pathologists to consider starting up new labs.

INTELLIGENCE:

Busy Surgeons Determined to be Good For Patients

MedTox Earns ISO

 

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