10 Laboratory Industry Trends in 2011
I always get reflective this time of year—laying to rest one year and birthing a brand new one. The table below recaps some of the significant trends of 2011.
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A Recap of 2011 TRENDS
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IMPACT on Clinical Laboratories:
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1. Explosion of Genetic Research, Companies, and Testing
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Multi-million dollar reference laboratory cost increases year-after-year if not aggressively managed. Some molecular assays have real value downstream from a patient outcomes and cost standpoint.
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2. Electronic Health Record Connectivity
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Adoption is being driven by the American Recovery and Reinvestment Act—Electronic Health Record Incentive program 2009. Laboratories may be donors of this software with safe harbor protection if they follow the government rules.
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3. Major Emphasis on Utilization Management and Control
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The Federal and State governments expect to pay for healthcare reform (universal coverage) by decreasing the amount of non-value adding waste in the care of patients—duplicate tests, the wrong test, or an unnecessary test all fall into the waste category.
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4. Morphing of Anatomic and Clinical Pathology
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Anatomic pathology is moving from qualitative testing (slide reading under a microscope with visual grading) to quantitative testing (immunohistochemistry, ELISA, and molecular diagnostic testing).
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5. Adoption of Digital Pathology
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Not prime time yet, but the tools are improving rapidly. Fast and efficient scanning will be required for widespread adoption along with diagnostic precision and accuracy of the image.
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6. Continuous Process Improvement
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Goal is to remove non-value adding steps from all work processes (wastes). The management philosophy and tools are proven—adoption requires major change.
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7. Independent Laboratories and Outreach Programs in Jeopardy
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Some business lines will evaporate if and when payment reform and ACO become common place—the end of per click revenue growth.
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8. Fraud & Abuse on Steroids
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Incentivized government auditors looking for clerical mistakes will recoup $1.75 for every $1 spent on these programs.
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9. Payment Reform
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The healthcare industry is a very viable business model today. The more you do the more you are paid. Payment reform will end this fee-for-service business model.
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10. Value Stream Paradigm Shift
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Departmental silo mentalities will disappear when health care value = patient outcome benefits divided by the cost of care.
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In my preparation for 2012, I stumbled across a white paper titled The Role of Laboratory Medicine in Accountable Care Organization written by Joe Miles, MT (ASCP), MHS and Ronald L. Weiss, MD, MBA, 2011 ARUP Laboratories, August 2011. Here is the link: http://www.aruplab.com/suite/documents/ACO%20Lab%20Strategy_whitepaper.pdf
This is a great strategy read for everyone working in the laboratory industry. My New Years wish for all is that you learn new ways of doing business so you thrive during healthcare reform. It is no time to have our heads in the sand. 
As always, I encourage your comments and want to thank you in advance for contributing to the discussion.
