The Future of a Pathology Laboratory in Your Office
2014 marked the 10th year of operations for the management of IOP. We have heard the refrain “in-office labs will be shut down” each and every year. With more than 4,000+ in-office laboratories, those threats seem rather toothless. IOP has more than 59 profitable laboratories in 23 states and the list continues to grow.
It is true that Medicare slashed some of the common test code fees in 2013, and again in 2014. However, IOP labs have extremely low overhead costs so their net profit margins have not suffered much at all. The Medicare fee cuts have amounted to less than 10% reduction in revenues for the average pathology laboratory. IOP laboratories are designed very efficiently so net profit margins hover near the same level before the Medicare fee cuts.
The CAP (College of American Pathologists) has spent a substantial amount of their lobbying efforts trying to kill in-office laboratories with minimal success. Many groups, all staunch supporters of in-office ancillary services for physicians (AMA, AUA, AGA, AAD, ACOG, and etc.) have brought their lobbying muscle to bear each time the in-office ancillary exception has been threatened. Additionally, Congress’ physician members recently came out publicly to support ancillary service exceptions. Even CMS (Medicare) reported last year that procedures and tests performed in physician offices are less costly than the same procedures performed in hospitals.
Remember, the stakeholders spreading rumors of our demise are the following: hospital-based pathologists, private pathology laboratories, specialty pathology laboratories, and the very large commercial laboratories. They would all benefit from the collapse of our business model. The current in-office labs will more than likely be grandfathered. This is what happened with all physician-owned hospitals a few years ago.
We continue to add clients nationwide. We would love to have your group join our ever-growing network of in-office pathology labs.
1340 Lakewood Drive
Lake Forest IL, 60045
(p) 800. 280.3785