Regardless of what you may think or hear...Small, personable, affordable, cost effective labs is the wave of the future.
Small Personable Labs
- Thread starter Anonymous
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They will not be independent labs. No independent will be able to get contracts, physician and clinical offices have contracts to they simply tag on a laboratory function to make more money. Independent labs no matter what size will not get contracts. LabCorp and Quest will make sure of it.
Wave of the future is crappy healthcare.....nobody is going to pay a premium for health services so lowest cost provider is only way to survive...... if you can get contracts
The proposed 2014 CMS guidelines are out, lots more cuts coming. Panic has set in with small to medium labs.
Wave of the future is crappy healthcare.....nobody is going to pay a premium for health services so lowest cost provider is only way to survive...... if you can get contracts
I believe that to be exactly what this thread starter is implying.
Panic may have set in with the greedy labs, no matter what their size (as we have seen). The small labs with much lower overhead can and will adapt.
Not true. Like anything else...the low bidder gets the contract, regardless of size!
Small labs cannot do business and absorb the tight pricing margin that quest and labcorp can.impossible to turn a profit when you cant cover costs. Apparently you slept thru Econ101 at community college. 3 labs will remain: local hospital, quest and labcorp.
Hospitals are buying up physician practices. Eventually there will just be like one or two health care systems in each state. They will use ACOs to route specimens to their labs. Bostwick has no chance of survival.
Apparently you have no bisiness sense. Your comment implies that you are a follower and not a leader, but let's say you are correct with your 3 labs in the future. Small afordable labs will be the big winners in your senario as well simply because of the massive amount of spillover work that will be generated. Oh, and don't knock community college, the people that make these business and "Econ 101" decisions are "YOUR" boss. Innovation and determination is the key to business success, not a fancy degree.
On the contrary. Small labs can show a higher profit margin percentage with current pricing than big labs simply because of much lower overhead. That was taught in Econ 102 at the CC!
the little train that could.... good luck getting contracts and cost controls. Game over.
You need the managed care plans so you can get paid, plans are starting to crack down and sending letters to the offices stating you are an out of network lab. The TC component is down 52% so you are taking a big hit there.
You need to get paid on the test you can’t be doing free testing for 40% of your business sooner or later the well will run dry. Just getting paid on PPO's does not cut it anymore
You need to get paid on the test you can’t be doing free testing for 40% of your business sooner or later the well will run dry. Just getting paid on PPO's does not cut it anymore
Since you like the choo choo train analogy... surely you realize that Norfolk Southern (little lab) is way more profitable than Amtrak (big lab)!
Agreed, but there are manipulative contracting and subcontracting ways both direct and indirect to get around and within the guidlines to get fully paid from the enormous amount of spillover work to be generated. Furthermore, you're correct, just getting paid on PPO's doesn't cut it when you have several dozens or hundreds of employees but.... when you don't, you'd be surprised at your profitablilty. Take the four months needed to read the healthcare bill (and not just the media hype) you will come to the conclusion that the LabCorp's and Quest's will need more than an abundant of outside labs for accomodation. They will not conglomerate or monopolize simply because of the taxation imbalance and extreme overhead costs in doing so. I agree with the initial post that small, personalized affordable labs are the wave of the future. The big labs aren't going anywhere and they are going to need the outside help.
This thread is funny.
Medicare cuts will be pushed back (again) and they will hurt the labs who have a singular focus when they kick in.
A few other labs with backing will invest in proprietary tech and luck of the draw on which ones get adopted.
Path groups will always be able to be turned to a quality lab - never met a Path yet who did not hate the 2 big boxes as they are competition.
Office based docs will have to send half their stuff (or more to the big boxes due to capitation) and whoever is left will fight for the rest.
But lol @ local labs being viable across the country.
Medicare cuts will be pushed back (again) and they will hurt the labs who have a singular focus when they kick in.
A few other labs with backing will invest in proprietary tech and luck of the draw on which ones get adopted.
Path groups will always be able to be turned to a quality lab - never met a Path yet who did not hate the 2 big boxes as they are competition.
Office based docs will have to send half their stuff (or more to the big boxes due to capitation) and whoever is left will fight for the rest.
But lol @ local labs being viable across the country.
Small labs will surely be viable. Proprietary ownership of the smaller labs will be aggresive in generating business and content will gross revs at the 1 -3M mark as opposed to the 60-100M+ the big labs MUST generate for survival.
First of all, I don't see BOSTWICK as "personable" and at the end of the day, I am sure they have NO CLUE as to what their costs are......
Dr. MBA did not take cost accounting......or he FAILED it.
Dr. MBA did not take cost accounting......or he FAILED it.
I don't believe this thread is referring to Bostwick as a smaller lab but instead implying how much smaller "mom and pop" labs will be in a favorable position to handle much of the overflow work. I agree, Bostwick is anything but "personable".