Clinical Laboratory Testing Volume 2: Business Strategies

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Pages: 96

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Publication Date: 2007-03-01

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Clinical laboratory testing is generally categorized as either of two general areas-clinical testing and anatomical pathology testing. Clinical and anatomical pathology procedures are frequently ordered as part of regular physician office visits and hospital admissions in connection with the diagnosis and treatment of illnesses. As such, clinical laboratory analysis is one of the most important sections of medical care.

The purpose of this TriMark Publications report is to describe the specific segments of the clinical laboratory analysis business. The emphasis in this review is on those companies that are actively developing and marketing laboratory data for the clinical setting, including hospitals, independent labs, physician's offices and miscellaneous clinics. This study concentrates on the clinical laboratory industry in the U.S. It defines the dollar volume of sales in each major market and analyzes the factors that influence the size and the growth of the individual market segments. The study surveys some of the primary companies known to be marketing clinical laboratory data into the market. Each company is discussed in depth with a section on the history of the company, the product line, business and marketing analysis, and a subjective commentary of the position of the company in its market.

The report attempts to answer the questions:

This examination reviews the market for clinical laboratory data used in clinical practice. It defines the dollar volume of sales in each major market and analyzes the factors that influence the size and the growth of the individual market segments. The report details market sizes and growth rates for the U.S. and world markets. The study surveys some of the primary companies known to be marketing clinical laboratory data into the market. Each company is discussed in depth with a section on the history of the company, the product line, business and marketing analysis, and a subjective commentary of the position of the company in its market.

Unique benefits of this report are:

The reader will gain an understanding of key areas of the clinical laboratory testing business.

Table of Contents

  • LIST OF FIGURES

  • Figure 2.1:Total Medicare Expenditures, 1995-200513
  • Figure 2.2:Effect of Medicare Laboratory Fee Schedule Changes on a $10 Test, 1984-200614
  • Figure 2.3:Part B Spending on Clinical Laboratory Services, 1991-200515
  • Figure 2.4:Cost Per Billable Test18
  • Figure 2.5:Annual Billable Tests Processed Per FTE19
  • Figure 2.6:Outreach Business Operated at a Freestanding Lab Facility20
  • Figure 2.7:Volume of Dedicated Sales and Marketing Staff for Outreach Business20
  • Figure 2.8:Separately Managed Outreach Billing and Collection21
  • Figure 3.1:Lab Revenue by Lab Type24
  • Figure 3.2:Lab Revenue by Test Type24
  • Figure 3.3:Physician Office Laboratory Revenue, 2000-200627
  • Figure 3.4:Unweighted Average Medicare Reimbursement for the 10 Most Common POL Tests28
  • Figure 3.5:Total Number of Non-Waived POLs, 2000-200628
  • Figure 3.6:Number of New Tests Granted CLIA-Waived Status, 2000-200629
  • Figure 3.7:High-Volume Waived Tests30
  • Figure 4.1:Laboratory Service Revenue from Pap Testing, 1998-200546
  • Figure 4.2:Percentage of Pap Tests Performed Using Mono-Layer Methods, 1998-200647
  • Figure 4.3:Market Share for Pap Test Vendors, 200647
  • Figure 5.1:Percentage of Physicians in Practices with IT for Specific Clinical Activities57
  • Figure 5.2:Office-Based Physicians That Use EHRs, 2001-200558
  • Figure 6.1:Average Revenue Multiple Paid to Acquire Labs, 2000-200660
  • Figure 6.2:Hospital Market Share for Outreach Programs73


  • LIST OF TABLES

  • Table 2.1:Hospital Laboratory Share of Part B Medicare Spending, 1996-200515
  • Table 2.2:Medicare Spending on Clinical Lab Services, 1991-200516
  • Table 2.3:Medicare Part B Spending Per Medicare Enrollee, 1998-200516
  • Table 2.4:Allowed Charges for Top 25 Clinical Laboratory Procedures, 200517
  • Table 2.5:Washington G-2 Hospital Lab Outreach Survey21
  • Table 3.1:U.S. Clinical Laboratory Testing Market Revenue, 2005-201223
  • Table 3.2:U.S. Clinical Laboratory Diagnostic Test Market Segments, 200623
  • Table 3.3:Growth Rates of Test Types25
  • Table 3.4:Independent Commercial Laboratory Testing Test Volume, 2005-201225
  • Table 3.5:Twenty Most Common Laboratory Tests Offered at Family Physician Offices31
  • Table 3.6:Important New Waived Tests31
  • Table 3.7:Revenue Growth At 14 Publicly-Traded Lab Companies, 200532
  • Table 3.8:Payer Group wise Percentage of Total Volume of Requisitions and Net Revenues35
  • Table 4.1:Pap Testing at the Largest U.S. Laboratory Companies, 200648
  • Table 5.1:Applications for Wireless LAN Technology55
  • Table 6.1:Laboratory/Pathology Acquisitions61
  • Table 6.2:Revenue Growth at Quest Diagnostics, 2000-200671
  • Table 6.3:Revenue Growth at LabCorp, 2000-200671
  • Table 6.4:LabCorp Revenue from Managed Care Contracts, 2004-200671
  • Table 6.5:Quest Diagnostics Revenue from Managed Care Contracts, 2004-200671
  • Table 8.1:Medicare Billing Guidelines for Multi-channel Laboratory Tests93
  • Table 8.2:Targeted Lab Tests and Brief Educational Reminder Messages95

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