Labs must demonstrate agility and adaptability in preparing for reimbursement headwinds while taking advantage of growth opportunities, finds Frost & Sullivan
Santa Clara, CA /PRNewswire/ - The growing trend of decentralization has expanded the scope of testing beyond the traditional laboratory environment. The $78.34 billion U.S. clinical laboratory market is expected to grow to $91.31 billion by 2022, driven by strong merger and acquisition activity and the consequent integration of services. In response to the Protecting Access to Medicare Act (PAMA) reimbursement cuts, laboratories are expanding their revenue streams by collaborating with retail clinics and e-commerce channels to gain access to new customers.Meanwhile, the Canada clinical laboratory market is expected to grow to $13.30 billion by 2022, bolstered by funding from the Ministry of Health (MoH).
"Laboratories will look to offer highly connected and integrated systems by leveraging outreach relationships and aiding development," said Divyaa Ravishankar, Industry Principal, Transformational Health. "Next-generation labs will be able to streamline physician office workflow orders and receive and report results in real time through electronic health record (EHR) systems. Therefore, it is important to ensure connectivity with provider and payer systems."
Frost & Sullivan's recent analysis, Growth Opportunities in the North American Clinical Laboratory Services Market, Forecast to 2022, covers hospital-based laboratories, independent laboratories, physician office labs (POLs), and other laboratories in the United States and Canada. Also, the study examines new business models and alternate revenue channels, as well as recommends strategies for clinical labs to combat reimbursement pressure.
For further information on this analysis, please visit: http://frost.ly/3es.
"Canada's diagnostics testing revenue is generated by hospital labs, private labs, physicians' offices, and public labs. By 2022, most of the private labs are expected to be integrated with hospital labs to provide an integrated facility for laboratory services," noted Ravishankar. "There is still a substantial amount of tests outsourced to the U.S., especially the NGS-based tests that add to the national expenditure. This provides scope for several U.S. labs to harbor a commercial laboratory operation in Canada."
For clinical laboratories to navigate the changing marketplace, they must make the most of the growth opportunities presented by:
Growth Opportunities in the North American Clinical Laboratory Services Market, Forecast to 2022 is part of Frost & Sullivan's global Digital Health Growth Partnership Service program.
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Growth Opportunities in the North American Clinical Laboratory Services Market, Forecast to 2022 K335-48
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