PATHOLOGISTS AND LABORATORY EXECUTIVES in this country generally don't pay much attention to what is happening to clinical laboratories and anatomic pathology services in other countries. That is understandable, since there is lots of change unfolding in the lab testing marketplace within this country.

On the other hand, if it is true that globalization of healthcare in general- and laboratory testing specifically-is an emerging trend, then there is strategic value in monitoring key developments in other developed countries. Today, I'd like to share a short list of unfolding events affecting lab testing services in several countries. At a minimum, it provides evidence and insight that the globalization of lab testing looms.

Let's start in the British Isles. THE DARK REPORT has briefed its clients and readers about the 100%outsourcing of Ireland's Pap testing to an American lab company. That was followed by the Irish government's announced plans to consolidate hospital testing into a handful of central labs, along with construction of two stand-alone lab facilities to serve office-based physicians.

In the United Kingdom, the new coalition government has announced the goal of reducing healthcare spending by £30 billion—a 20%reduction fromthe current level. For pathology and lab testing, the budget reduction is £750 million per year.At the same time, the National Health Service (NHS) is in active negotiations with private organizations and in vitro diagnostics (IVD) companies to explore and establish new models of integrated and consolidated regional laboratory organizations.

Canada's issues seem to center around the quality of anatomic pathology services. In recent weeks, news stories have covered the findings of commissions and review teams tasked with identifying why patients in some hospitals received inaccurate lab test results. Consolidation of lab testing services is also ongoing in several provinces.

In Australia, an American private equity company is poised to acquire a private hospital company that happens to own one of Australia's largest pathology companies. If the new owner were to decide to divest this pathology business, it is likely to roil the lab testing marketplace down under. Also during this time, the federal health program has instituted cuts in funding for lab testing services. At some point, these restructuring and cost saving efforts will encourage a government health program to invite foreign lab companies into their country. That may be one likely path toward the globalization of laboratory testing.

New "Meaningful Use" Rules Are Easier on Docs

Predictions are that some EMR systems will not be easy to integrate with the lab's LIS

CEO SUMMARY: The federal government will spend $20 billion over the next four years to encourage every physician to use an electronic medical record (EMR) system. For labs, this increase in connectivity represents a significant marketing opportunity. However, the new federal rules on meaningful use of EMRs released last month may complicate the situation for clinical labs and pathology groups. One EMR expert says that’s because some EMR systems will do a poor job of interfacing lab test orders and lab test reporting with the lab’s LIS.

Guest Opinion: Lab Industry Would Be Smart To Issue EMR Report Card

360,000 physicians are about to adopt EMRs, which means labs will need to build interfaces

Actions of Ex-Employees Can Breach Lab Security

Theft of valuable lab assets is common and costly, but labs can easily protect themselves

CEO SUMMARY: Labmanagers should take steps to protect patient data and proprietary information. This includes customer lists, payer contracts, customer-specific pricing, sales force compensation information, lab testing intellectual property, and protected health information. Technology now makes it easy for a departing employee to collect company data by moving it to a USB drive or even an iPod.

Dark Index: Specimen Volume Declines Reported By Quest Diagnostics and LabCorp

For second quarter, outside data indicates there were 5% fewer patient visits to doctors

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Lab Law Updates: AAB's Suit Prevails over NY State Following 11 Years of Litigation

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INTELLIGENCE: Late & Latent

CLEVELAND CLINIC STARTS BUILDING $75 MILLION LAB

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