for a practice. What proves even more
concerning for physicians and patients
alike, is a present medical landscape of
high healthcare costs, an ever-
increasing need for healthcare options
and diminishing resources. Furthermore,
caring physicians want to be effective
providers for their patients, but they
also want the appreciation and
financial compensation for their
profession demands.
In this regard, many physicians,
Urologists, Oncologists, Gastro-
enterologists and Dermatologists for
example, have made conscious efforts
to optimize their practices in an effort
to generate other streams of ancillary
income. One specializing measure has
been opening in-office testing labs
(POL's) directly at their office location.
These labs, carefully stocked and
equipped to run routine (but
important) procedural tests, provide
real life "one stop shop" scenarios for
patients with busy schedules and
limited funds, and can quickly develop
into thriving profit centers for small
practices...but before opening up a lab,
let's talk some basics.
Physicians have a number of
options when it comes to medical
testing. The first, and least efficient, is
for them to refer patients to a hospital
or an off-site lab for their tests. This
method, though convenient for
practices with a high volume of
appointments, generally proves
inconvenient for the patient, who has to
make an additional trips for a singular
medical problem. Additionally, it yields
a low (virtually non-existent) financial
return for the physician.
Another "off-site testing" option
for physicians is to take the samples in
the office, and then send them to an
off-site lab for analysis. Commercial
Reference Labs (CRL), like Quest
Diagnostics, Laboratory Corporation
of America Holdings and Bio-
Reference Medical Labs, have carved
a space in physician circles as adept
facilities that aid practices by doing
the testing work for them. Still, the
method is not without its downsides
as it creates another process "step" for
physicians who must take the test
“ Someone’s
going to run
and get paid
for these tests.
It might as
well be you.”
Dylan Chadwick
samples in-house, and then send
them off-site before a further
diagnosis can be made. Turn-around
times increase as patients and
physicians wait for their samples,
shipping expenses must be considered
and again, since Commercial
Reference Labs are compensated for
their lab work, financial returns for
the actual physician are low.
In the immediate sphere, these
off-site methods may take stones from
practices' proverbial backpack as
they're "freed up" to see more
patients, but in more pressing ways
they're potentially yanking dollars
from a practice's proverbial wallet.
A viable route for physicians is to
run the testing themselves using
products that have been specifically
waived by the Clinical Laboratory
Improvement Amendments (CLIA).
Established in 1988, the CLIA sets
standards and issues certifications for
clinical laboratory testing, with an
emphasis on ensuring accuracy,
reliability and timeliness. Using CLIA
waived products keeps the testing in-
house, and can generate much-needed
revenue for a physician by steering
testing and procedural fees directly to
the practice. However, testing done on
CLIA waived products isn't always
the most extensive and can be
limited in scope.
In an efforts to generate
additional income for their practice,
and to creating an efficient and all-
encompassing experience for their
patients, physicians may be better
advised not to stop simply at CLIA
products, but to establish an entire
CLIA certified lab in their office.
In his article Oncologists Advised to
Build Their Own In-Office Clinical Labs
Michael McBride cites an anecdote by
Tim Dumas, a lab scientist and POL
consultant, when he says "someone's
going to run and get paid for these
tests. It might as well be you." In the
article, Dumas references a three
doctor Oncology practice in Raleigh
North Carolina that generates an
additional $400,000 annually with
their own Physician office lab. He even
predicts that a ten to twelve doctor
practice can look at $7-800,000 a year
in additional revenue if they
implement such a facility.
Besides the extra cash flow, in-
house Physician Office Labs usher in
various benefits for small and mid-
level practices. For one, waiting
games and turn around time between
specimen collection, analysis and
patient follow up are diminished.
Since tests don't need to be sent…
Read the rest of this and other articles at
www.PhysiciansOfficeNews.com
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