Observations of Large Laboratory Outreach Programs – Part 2

In April 2015, the first in a series of two blogs (Observations of Large Laboratory Outreach Programs – Part 1) shared results of research conducted by Chi and presented at the 2015 G2 Intelligence Lab Revolution conference on how hospital-based outreach programs are confronting the new demands of healthcare. The April blog provided insights on revenue size, growth, and sources; medical staff employment; strategy focus; use of in-office phlebotomists; and types of sales representatives. Below are additional study findings with regard to the typical large laboratory outreach business:
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THE MYTH OF NATIONAL CLINICAL LABORATORY “EXCLUSIVITY”

The national laboratories would like you to believe that they have the advantage when it comes to managed care contracting—that they alone have negotiated “national exclusive contracts” with certain payers that require physician offices to send all patient insurance types to their laboratories. This is hogwash. Or perhaps brainwash is more apropos. They have brainwashed physicians and their office staff into believing they are contractually required to follow these “rules.” And, of course, no one wants the inconvenience of using multiple laboratories, so they might as well send all their work to the national laboratory, effectively cutting out the hospital laboratory altogether. Slick, right? That is their story and they stick with it, as shown in the cartoon below:

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