I just returned from the G2 Intelligence Lab Institute conference in Washington, DC, and was struck by the dedication and persistence of laboratory executives despite seemingly insurmountable odds. Lab industry challenges grow each year, with impending PAMA reimbursement reductions now added to the mix of bundled payments, narrowing insurance networks, ACOs (accountable care organizations), and industry fragmentation. Laboratory is involved in 70 percent of patient management decisions and represents only three percent of the costs, yet it is targeted for a disproportionate amount of cost reductions by the government and other payers. It strikes me as a sort of modern existentialism. Continue reading
One of the most common questions from our client base is, “What types of joint ventures or partnerships are available with outside entities, and what are the pros and cons versus going solo?”Let’s start with the most formal, a joint venture, and work our way down to management agreements.
There are less than 20 formal types of laboratory/hospital joint ventures today. The laboratory companies that enter joint ventures are very large regional (PAML), national (LabCorp, Quest Diagnostics), or international firms (Sonic). Continue reading