Laboratory Economics Issues Research Report on U.S. Anatomic Pathology Market

Laboratory Economics Issues Research Report on U.S. Anatomic Pathology Market

The publisher of Laboratory Economics has just released The U.S. Anatomic Pathology Market: Forecast & Trends 2019-2021. With this special report, you can tap into 150 pages of proprietary market research that reveals critical data and information about key business trends affecting the anatomic pathology market.

The report reveals that the anatomic pathology market (including Pap testing) now represents an estimated $18 billion of revenue with an annual growth rate of 3-4%. All data and trends are fully explained throughout the report, including 10-year historical data and a detailed three-year forecast.

The U.S. anatomic pathology market endured intense reimbursement pressure between 2013 and 2017. “However, the Medicare program has completed its evaluation of payment rates for all the key pathology codes and the reimbursement environment now appears stable,” according to Jondavid Klipp, Publisher of Laboratory Economics. “Furthermore, the introduction of new higher-priced molecular oncology tests linked to targeted cancer drugs is driving volume trends higher. As a result, the outlook for the U.S. anatomic pathology market is the best it’s been in the past 10 years.”

The report includes:

  • More than 100 charts and graphs
  • Industry size and growth rates
  • Detailed estimates for market subsets like prostate cancer testing, dermatopathology, lymphoma/leukemia and gastrointestinal
    pathology
  • Medicare claims data for 60 key pathology codes
  • Cervical cancer testing trends and pricing data
  • In-office histology lab trends
  • Detailed analysis of the digital pathology market
  • Results from Laboratory Economics’ exclusive Anatomic Pathology
    and Clinical Lab Trends Surveys from 2007 through 2019

Anatomic pathology companies featured in this report include: Aurora Diagnostics, Bako Diagnostics, CellNetix Labs, Exact Sciences, Genomic Health, InformDX, LabCorp/Dianon, Myriad Genetics, Mayo Clinic Labs, NeoGenomics, OPKO/BioReference Labs, PathGroup, Pathology Reference Laboratory, Poplar Healthcare, ProPath Services, Quest Diagnostics/AmeriPath and Sonic Healthcare USA.

The U.S. Anatomic Pathology Market: Forecast & Trends 2019-2021 is published by Laboratory Economics (www.laboratoryeconomics.com), an independent market research firm focused exclusively on the business of pathology and laboratory medicine.

Contact Information
Contact: Jondavid Klipp, President
Laboratory Economics
195 Kingwood Park
Poughkeepsie, NY 12601
Phone: 845-463-0080
www.laboratoryeconomics.com

Largest Nursing Home Lab Company Seeks Bankruptcy Reorganization

Largest Nursing Home Lab Company Seeks Bankruptcy Reorganization

Trident Holding Company (Sparks, MD), the nation’s largest nursing home lab operator, filed for Chapter 11 bankruptcy reorganization in the Southern District of New York on February 11. Trident, which employs 4,500 full-time workers and 660 people part time, provides mobile x-ray, ultrasound, and clinical lab testing services to some 12,000 nursing homes, assisted living and correctional facilities in more than 35 states. Its subsidiary lab companies include Diagnostic Laboratories and Radiology (Burbank, CA), Schryver Medical (Denver, CO) and U.S. Lab and Radiology (Brockton, MA).

Trident’s bankruptcy filing showed the company and its subsidiaries had a total of $785 million of secured debt outstanding and missed a $9.2 million interest payment that had been due January 31. Trident’s heavy debt burden became unsustainable due to declining occupancy rates at nursing homes, Medicare CLFS rate cuts, and a botched billing system transition.

Soon after the bankruptcy filing, Trident obtained a $50 million debtor-in-possession (DIP) financing loan from hedge fund Silver Point Capital (Greenwich, CT), which now has equity control. The loan will allow Trident and its subsidiaries to continue to operate, while it restructures both its debt and business operations. Full details in March 2019 issue of Laboratory Economics.

Many Hospital Labs Still Don’t Know They Must Report PAMA Data

Many Hospital Labs Still Don’t Know They Must Report PAMA Data

On January 22, the Centers for Medicare & Medicaid Services (CMS) hosted a teleconference that focused on a new rule that requires nearly all hospital outreach labs to collect their private-payer payment data from January 1 to June 30, 2019, and report it to CMS in early 2020. This data, along with private-payer data from independent labs and physician office labs, will be used to set new rates for the Medicare CLFS in 2021.

Although the new rule was published in early November 2018 and the data collection period is already underway, the teleconference Q&A showed that many hospital outreach labs are unaware that they are required to report. Broad participation from hospital outreach labs in the current data collection cycle is critical to stabilizing Medicare CLFS rates in 2021.

The Final Medicare Physician Fee Schedule for 2019 states that hospital outreach labs that bill for their non-patient lab services using the hospital’s national provider identifier (NPI) must now use Medicare revenues from the Form CMS-1450 14x Type of Bill to determine whether they meet the majority of Medicare revenues threshold and low expenditure threshold.

During the teleconference, CMS confirmed that this will require most hospital outreach labs to collect and report their private-payer data.

Laboratory Economics notes that in simplest terms, the rule requires any hospital outreach lab that collects $12,500 or more in Medicare CLFS revenue during the first six months of 2019 to report their private-payer payment data to CMS. Of course, all independent labs and physician-office labs meeting the $12,500 threshold must also report.

Based on an analysis of Hospital Cost Report data from 2018, Laboratory Economics has identified more than 1,000 hospital outreach labs that will meet the $12,500 threshold and are therefore required to report.

The PAMA law authorizes CMS to impose civil monetary penalties of up to $10,000 per day on labs that are required to report, but fail to do so. However, CMS did not enforce this law during the first reporting cycle (2016-2017) and it has not threatened to do so in the current cycle.

The cost and complexity involved with collecting private-payer payment data combined with CMS’s unwillingness to impose penalties on non-reporting labs lead Laboratory Economics to the unfortunate conclusion that most hospital outreach labs, as well as smaller independent labs and POLs, will dodge their reporting responsibility.

This likely scenario will have devastating long-term consequences for all laboratories. It means that lab test codes paid through the Medicare CLFS—already scheduled for three straight years (2018-2020) of 10% rate reductions—may suffer reductions of as much as 15% in 2021.

Note: This is an excerpt from an article in the February 2019 issue of Laboratory Economics.

Special New Year’s Report: Lab Execs Share Outlook for 2019

Special New Year’s Report: Lab Execs Share Outlook for 2019

For an inside look at what may be in store for the clinical lab and pathology business this year, Laboratory Economics interviewed the top executives at a diverse group of 10 lab companies.

Not surprisingly, our interviews revealed that commercial insurers are using Medicare’s repricing of the CLFS as a pretext to cut their own rates. What is surprising (and alarming) is that some commercial insurers have demanded the full three-year phased-in ~30% CLFS reduction applied to their rates upfront immediately.

Labs are hoping to offset the pricing pressure by gaining economies of scale through geographic and test menu expansion. On the brighter side, the extreme pricing pressure that terrorized technical services for anatomic pathology seems to be over. Furthermore, molecular diagnostics and prescription drug monitoring continue to be high-growth markets.

  • Pricing pressure from both Medicare and commercial insurers
  • High volume growth in molecular diagnostics and prescription drug monitoring
  • Anatomic pathology reimbursement rates have stabilized
  • Hospital outreach labs benefiting from health system acquisitions of physician practices
  • Nursing home labs are restructuring and consolidating

Companies profiled in the January 2019 issue of Laboratory Economics include Sonic Healthcare USA, NeoGenomics, Health Network Laboratories, CellNetix, TriCore Reference Labs, Enzo Clinical Labs, Clinical Laboratory Services, CellMax Life, Psychemedics and Wisconsin Diagnostic Labs.