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R.
Lewis Dark: Of Automation, the Internet, and Other Curiosities
In reading the first drafts of the stories in this issue of The Dark Report,
I was struck by the unsteady progress that's been made in the lab industry by emerging technologies such as total laboratory automation (TLA) and
Internet-based lab services during recent years.
How many of us remember the widespread belief, back in the first half of the
1990s, that fully-automated labs would eventually dominate the lab industry? Specimens would arrive at the lab. Once put into the automated system,
no human hands would touch them again as they went through accessioning, on to the test instrument, then off to storage. It was assumed that
clinical laboratories which were first to fully automate would have a competitive cost advantage and would march off to market dominance.
As the old comic character Major Hoople used to say, "Harumph!" Those bold
predictions of not-so-many years ago remain unfulfilled in today's environment. The operators of the nation's highest-volume laboratories, which
include Laboratory Corporation of America, Quest Diagnostics Incorporated, still deem both the economics and management challenges of TLA
as not yet ready for their highest volume facilities. The promise is, as yet, unfulfilled.
The same can be said for use of the Internet by laboratories.
Back in 1999, Healtheon/WebMD held contracts with two of the three billion-dollar national labs to implement browser-based lab test ordering
and the results reporting. Advanced Health Technologies (AHT) had contract with more than 60 healthcare systems to implement similar functions.
Yet look at what happened during the past 24 months. WebMD acquired a lot of real healthcare businesses and found itself in a deep financial morass.
AHT entered bankruptcy, was absorbed by CyBear, Inc., and has not been heard from again.
In my role as crusty old curmudgeon, I get to comment on the folly of vendors who tout solutions that may
not yet be ready for prime-time. That's a practice that's aggravated laboratory executives and pathologists for years. But it must also be remembered
that new technology never arrives in a "clean" way. Both science and the marketplace are messy, muddled environments. Successes are always
accompanied by setback, but progress is ever forward. TLA and the Internet are examples of this process. As they shake out their bugs, both technologies will
eventually bring immense benefits to both the laboratory industry and the pathology profession.
It's Modular Automation At Beaumont Hosp. Lab
New lab arrangement reflects changing economics
and shortage of med techs
CEO
Summary: Many hospital labs are evaluating laboratory automation options. The fastest-growing problem which needs an answer is the shortage of trained
medical technologists and technicians. At William Beaumont Hospital's new laboratory, selective workstation and modular automation solutions were chosen
at part of a master plan to reduce overall lab testing costs and minimize labor needs.
Wireless Lab Reporting Now Active in Washington, DC
Service is bundled with prescription ordering and
AML is first to provide lab test results
CEO
Summary: While companies like iScribe and Allscripts have attracted lots of attention with their efforts to convince doctors to use wireless PDAs to order prescriptions,
InstantDx has quietly launched its "OnCallData" service in Washington, DC. It offers both prescription-ordering and lab test results reporting
and allows a wireless connection with any type of device that a doctor prefers.
Ohio Hospitals Prevail in Suit Against Federal
Lab Claims
Five-year legal battle over allegations of lab
test billing violations is settled
Lab Test Ordering On Web Presents Tough Challenges
Both Vendors and Lab Seek Better Solutions
CEO
Summary: During 1999, many factors pointed to the speedy introduction of Web-based lab test ordering between physicians' offices and their laboratory providers.
Several credible players, like Healtheon/WebMD (now WebMD) and Advanced Health Technologies, held numerous contracts to implement Web-based lab test ordering and results
reporting. But Web-based lab test ordering never gained traction. Most first generation software products performed poorly and failed to meet expectations, both of labs
and their office-based physician clients.
Dark Index
Quest and LabCorp Show Gains In Mid-Year Financial Reports
Dominant influence in revenue growth is impact of better
pricing for lab testing
Intelligence:
Late-Breaking Lab News
Prompt Provider Pay:
Overly-long delays in payments to providers have been a major issue in recent years.
Siemens Becomes First Health Info Firm to Get ISO-9000: After nine months of preparation, Siemens Medical Solutions Health Services Corporation, a division of Seimens Medical Solutions of Malvern, PA. was granted
ISO-9000:2000 certification following its audit last month.
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