Volume XI
July 2019 - Top Stories:
The Rise in Direct to Consumer Testing: The rise in direct to consumer testing is creating a new opportunity for entrepreneurs to enter the laboratory market, but it also comes with unique landmines and pitfalls that require expertise to navigate.
Surprise Billing: The House Energy and Commerce Subcommittee on Health passed the "No Surprises Act" this month. It aims for transparency in medical billing to protect patients, but will labs lose out?
FREE WEBINAR July 24th @1pm EST
How to Launch Direct to Consumer Testing
In this webinar we will discuss the Pros and Cons of offering your lab tests direct to consumer and also offer guidance on how to roll it out at your laboratory while remaining compliant.

INDUSTRY INSIGHTS
Surprise Billing - Is the No Surprises Act a good or bad thing for laboratories?

No one likes surprises, right? The old saying may not always ring true but it’s certainly the case when patients receive a medical bill. The balance owed on a medical bill almost always comes as a surprise, very rarely in a good way. 
In February, the American Hospital Association developed and published the following principles to help inform the debate regarding surprise billing. But note that, in the event a patient chooses to go out-of-network for care, these principles should not apply.

  • Protect the patient
  • Ensure patients have access to emergency care
  • Reserve the role of private negotiation
  • Educate patients
  • Ensure adequate provider networks and greater health plan transparency
  • Support state laws that work

On July 11 The House Energy and Commerce Committee passed the No Surprises Act
( H.R. 3630 ), bipartisan legislation aimed at preventing patients from receiving ‘surprise’ medical bills. 

Most would agree that this is a noble act that is needed on some level, however, if this is not administered properly, this could be bad news for out-of-network labs.
WHAT'S TRENDING?
The Rise in Direct to Consumer Testing (and how to join the movement).
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It's intriguing to think of all the possibilities that exist for an entrepreneur...to get involved in a booming laboratory business."
With the huge successes seen by Direct To Consumer (DTC) companies like "23 & Me," "Ancestry.com," "Healthlabs.com," and more, many people are excited and interested to learn more about how they might be able to benefit by offering a DTC test or wellness panel. It is intriguing to think of all of the possibilities that exist for an entrepreneur to create a unique business model that would allow them to get involved in the booming laboratory business, nationwide.

Sounds good doesn't it? Not so fast. There are plenty of examples of online businesses which have crashed and burned because their principal drivers didn't anticipate the many pitfalls and land mines that exist in that marketplace. In the DTC test industry there are unique stipulations and compliance issues that one should know how to navigate before going to market.

How do you avoid those problems? How do you enter a landscape and experience success in the DTC industry? 

Who is Responsible for Your Lab's Compliance?

Ensuring a lab’s compliance is a duty that falls solely to the CLIA Laboratory Director of record. Although many lab director responsibilities can be delegated to appropriately trained on-site staff, especially in the case of a part-time lab director, one responsibility that cannot be delegated is regulatory compliance. For the overall health of the lab and its business, it is important to have a lab director who understands compliance and is dedicated to ensuring that the lab is compliant and inspection-ready at all times. 

Many lab directors utilize a checklist for on-site visits to evaluate the lab’s compliance on at least a quarterly basis. This ensures there are no surprises when it is time for inspection. Being inspection-ready should be a mindset adopted by every clinical lab, as well as its lab director. 

High-quality lab directors with good attention to compliance-specific details are especially important for new labs looking to get started on the right foot. As many new labs discover during the start-up phase, it can be difficult to cover the overhead costs of a lab director prior to initiating testing given that the lab is not generating revenue during this time; to counteract this issue, our lab director program members in the start-up phase typically only pay half the normal rate for lab director services until the lab reaches live testing status.

Contact our Lab Director Program Manager to learn more about our Lab Director Program and/or receive a quote for lab director services specific to your facility so that your lab is always inspection-ready and compliant.
LABS FOR SALE
Expand into a new line of testing, add a specific geographic area, diversify your in-network capabilities (commercially or federally), or bring in additional business volume with strategic opportunities. Please contact us to schedule an initial confidential call.


Featured Labs for Sale:
Presented by Lighthouse Lab Services Buyer Seller Team

Location: Southeast US
Price: $3,000,000

Innovative laboratory seeking a group to acquire the company and market a newly developed Lyme Disease test.
Location: Southeast US
Price: TBD

Established multi-site in-network profitable healthcare company/independent laboratory in the Southeast US. Company specializes in Practice Management, Laboratory, Ultrasound, and Medical Imaging.

Location: Nevada
Price: $785,000

Fully staffed 4000 Sq Ft Nevada Licensed CLIA Laboratory focusing on comprehensive blood and toxicology testing.

Location: Southwest US
Price: $475,000

Established Novitas lab credentialed with Medicare and Medicaid.
We had 4 laboratories that sold last month!  If you are interested in hearing more about our seller services, or if your group is actively seeking to acquire a laboratory, please reach out to schedule an initial consult.  Visit our website for existing laboratory listings and reach out to arrange a call if these listings do not meet your search criteria as many labs are not actively listed.

Interested in Buyer Seller Services?
Schedule an initial confidential call with Lighthouse Lab Services
The Lab Insighter is a quarterly publication for Lab Owners and Decision Makers.
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Contact us at: 919-899-9325
or start@lighthouselabservices.com