December 2022 Diagnostic Laboratory Market Trends

Transcript:December 2022 Diagnostic Laboratory Market Trends:
December 2022 Diagnostic Laboratory Market Trends Roadmap Overview of the lab landscape 01 Source: “Diagnostic & Medical Laboratories in the US,” IBISWorld, August 2022; “The Diagnostic Laboratory Space: An Ecosystem in Transformation,” Marwood Group, October 2021; Advisory Board’s Market Scenario Planner Tool. The diagnostic lab market is robust and growing DATA SPOTLIGHT Laboratory tests are performed annually in the US Value of US clinical lab market 13B $106B 15% 7% Lab tests (in millions) 5- and 10-year projected volume growth for outpatient lab tests 2021-2031 Developments in testing technology Rising burden of chronic and infectious diseases 5-year growth 10-year growth Source: “ARUP Leadership –The Pros and Cons: Should Hospitals Sell Their Labs?” ARUP Laboratories, 2018, “Diagnostic & Medical Laboratories in the US,” IBISWorld, August 2022; “Transforming the Hospital Laboratory into a Profit Center,” Revcycle Intelligence, March 2018; “Frequency that Laboratory Tests Influence Medical Decisions,” The Journal of applied Laboratory Medicine, January 2017; The Diagnostic Laboratory Space: An Ecosystem in Transformation,” Marwood Group, October 2021. Lab tests play a key role in patient care of EHR information consists of lab data Prevalent diagnoses prompting lab tests Prevalence of lab testing of patient encounters in one health system involved ordering >1 tests 80% 35% Diabetes - Tests monitor blood glucose control and comorbid complications after a diabetes diagnosis Hypertension - Lab tests assess the cause of high blood pressure, monitor patient medication adherence and assess treatment efficacy Lipid disorders - Periodic lipid testing lowers stroke risk for dyslipidemia patients taking statins Case Study: Percent of patient encounters resulting in a lab test order at VCU Health System 2014-2015 All three tests are blood tests. Source: “Better management of routine lab testing can help reduce costs for insurers,” Benefits Pro, November 2021, Better management of routine lab testing can help reduce costs for insurers | BenefitsPRO; “Data Brief,” Office of Inspector General, December 2020, Despite Savings on Many Lab Tests in 2019, Total Medicare Spending Increased Slightly Because of Increased Utilization for Certain High Priced Tests, OEI-09-20-00450 (hhs.gov). Routine tests make up most tests performed Top 3 routine tests1 by Medicare Part B spending, in millions 2019 Routine tests are tests conducted on a regular basis, often to detect diseases before symptoms are evident or to confirm a simple infectious disease diagnosis Such tests can be done with relatively simple equipment, and do not require specialized personnel Examples include: complete blood counts (CBCs),