Clinical labs performing more tests but making less money
Despite expanding volume, the U.S. market for clinical lab services grew just 1.6 percent in 2011 from the previous year. The culprit behind the drag on business: reductions in reimbursement.
Such is the conclusion of market research publishing house Kalorama Information, whose new report on the segment estimates its 2011 worth at $52 billion. The market includes hospital and physician labs as well as outsource lab chains such as Quest Diagnostics and LabCorp.
In announcing the release of the report, Kalorama credited the volume increase to an aging and longer-living population combined with a trend toward preventive and risk-factor testing in such specialties as oncology, endocrinology and gynecology.
It cited as an example of the payment falloff the reimbursement code for cancer screening via fluorescence in situ hybridization (FISH). Labs were reimbursed $252 for this test in 2007 but just $202 in 2011.
“The overall word in the industry is that this has been a difficult time for billers,” said Bruce Carlson, Kalorama’s publisher. “The new schedules reduce most fees, which will continue to reduce revenue growth.”
Such is the conclusion of market research publishing house Kalorama Information, whose new report on the segment estimates its 2011 worth at $52 billion. The market includes hospital and physician labs as well as outsource lab chains such as Quest Diagnostics and LabCorp.
In announcing the release of the report, Kalorama credited the volume increase to an aging and longer-living population combined with a trend toward preventive and risk-factor testing in such specialties as oncology, endocrinology and gynecology.
It cited as an example of the payment falloff the reimbursement code for cancer screening via fluorescence in situ hybridization (FISH). Labs were reimbursed $252 for this test in 2007 but just $202 in 2011.
“The overall word in the industry is that this has been a difficult time for billers,” said Bruce Carlson, Kalorama’s publisher. “The new schedules reduce most fees, which will continue to reduce revenue growth.”
Dave P. has worked in journalism, marketing and public relations for more than 30 years, frequently concentrating on hospitals, healthcare technology and Catholic communications. He has also specialized in fundraising communications, ghostwriting for CEOs of local, national and global charities, nonprofits and foundations.