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Growth Opportunities in the North American Clinical Laboratory Services Market, Forecast to 2022

Growth Opportunities in the North American Clinical Laboratory Services Market, Forecast to 2022

Clinical laboratory services represent one of the highest healthcare expenditures in North America, yet the United States and Canada represent different scenarios in the way clinical services are rendered. The market for clinical lab services in Canada was an estimated $10.33 billion in 2017 whereas in the United States it was an estimated $78.33 billion for the same year. Heavily influenced by the Protecting Access to Medicare Act (PAMA) reimbursement cuts, US laboratories are expanding their revenue streams to collaborate with retail clinics and eCommerce channels to increase their testing footprint. Today’s market is ripe for mergers and acquisitions. The private market is heavily concentrated between two reference laboratories, Quest Diagnostics and LabCorp.

This report analyzes the market for clinical laboratory services in North America across 3 main segments: hospital laboratories, physician office laboratories, and specialty/independent laboratories. In Canada, regional public laboratories are also analyzed. Revenue forecasts for the period 2018–2022 have been carefully studied to understand the impact of PAMA and the upcoming reimbursement cuts. The study also includes competitive profiles of top vendors serving the United States and Canada for laboratory testing and gives an in-depth analysis of winning strategies for laboratories to survive in a future that is governed by value-based healthcare. Since the market is ripe for mergers and acquisitions, a detailed M&A analysis for the period 2017–2018 is included.

In Canada, lab services as well as any innovation pertaining to the introduction of new tests are heavily dependent on Ministry of Health (MoH) funding. Some provinces are more open than others (e.g., Ontario is more open to innovation and introduction of new tests when compared to Quebec.). Ontario, British Columbia, and Quebec are the major markets within Canada. Although similar in the flow of funds and governance by their respective MoHs, it is important to note there is a huge pricing difference observed for clinical tests in each Canadian province. There are downsides to the clinical lab services market in Canada given that several medically necessary tests remain uninsured and not paid for by the MoH. These are covered through private insurance. Also, a substantial amount of outsourcing occurs for genetic testing (sent to the United States, mostly) because of an inadequate strategy for this type of testing.

Other areas covered in this research are challenges and drivers impacting the clinical lab services market in the United States and Canada; new business models and alternate revenue channels; winning strategies for clinical labs to combat reimbursement pressure; actionable growth opportunities for companies; and major lab chains by country.


  • Executive Dashboard
    • Purpose of this Experiential Study
    • 5 Step Process to Transformational Growth
    • Scope and Segmentation—United States
    • Scope and Segmentation—Canada
    • Market Highlights
    • Strategic Imperatives for Laboratories
    • Key Questions this Study will Answer
    • Top 3 Predictions
  • Growth Environment—Market Overview
    • US Clinical Laboratories Market Landscape
    • Canadian Clinical Laboratories Market Landscape
    • Key Trends in the North American Clinical Services Market
    • Factors Considered When Choosing a Clinical Service Provider
    • Winning Strategies for Labs to Survive
  • Vision and Strategy—Growth Opportunities
    • Key Focus Areas for Clinical Laboratories
    • Growth Opportunity 1—Seeking Alternate Revenue Channel
    • Growth Opportunity 2—Transformative Care Practices Combining Pathology and Genomics Data
    • Growth Opportunity 3—Blockchain for Transforming Care Pathways
  • US Clinical Laboratory Services Market Forecasts
    • US Clinical Laboratory Services Market Snapshot
    • Top Clinical Laboratory Services Trends (US)
    • Market Drivers
    • Market Restraints
    • Strategies to Combat PAMA
      • Table Clinical Laboratory Services Market: Comparison of Reimbursement Changes, US, 2017–2019
    • Merger and Acquisition Analysis
    • Summary of Merger and Acquisition Trends
    • Notable Deals of 2017 and 2018
  • Revenue Forecast and Market Share Analysis— The United States
    • Market Engineering Measurements
      • Table Clinical Laboratory Services Market: Market Engineering Measurements, US, 2017
    • Forecast Assumptions
    • Revenue Forecast
      • Table Clinical Laboratory Services Market: Revenue Forecast, US, 2014–2022
    • Revenue Forecast by Lab Type
      • Table Clinical Laboratory Services Market: Revenue Forecast by Lab Type, US, 2014–2022
    • Revenue Forecast Discussion
    • Market Share Analysis
      • Table Independent Reference Laboratory Market: Market Share Analysis, US, 2017
  • Understanding US Clinical Laboratory Services Market by Numbers
    • US Clinical Laboratory Services by Numbers
    • Number of Labs by Specialty
      • Table Clinical Laboratory Services Market: Number of Labs by Specialty, US, 2018–2019
    • US Clinical Laboratory Services Overview
      • Table Clinical Laboratory Services Market: Top 25 Ordered Tests, US, 2017
  • Company Profiles—Tier I
    • Quest Diagnostics
    • LabCorp
    • BioReference Laboratories (OPKO Health)
    • Myriad Genetics
  • Canadian Clinical Laboratory Services Market Forecasts
    • Canadian Clinical Laboratory Services Market Snapshot
    • Top Trends in Canadian Clinical Laboratory Services Market
    • Market Drivers
    • Market Restraints
    • Snapshot of Clinical Laboratory Providers (By Numbers)
    • Provincial Analysis—Reimbursement
    • Provincial Analysis—Outlook
    • Provincial Analysis—Pricing Differences
      • Table Clinical Laboratory Services Market: Pricing Differences, Canada, 2017
    • Provincial Analysis—Coverage Variations
    • Genetic Testing Outsourcing
  • Revenue Forecast and Market Share Analysis— Canada
    • Market Engineering Measurements
      • Table Clinical Laboratory Services Market: Market Engineering Measurements, Canada, 2017
    • Forecast Assumptions
    • Revenue Forecast
      • Table Clinical Laboratories Services Market: Revenue Forecast, Canada, 2016–2022
    • Revenue Forecast by Lab Type
      • Table Clinical Laboratory Services Market: Revenue Forecast by Lab Type, Canada, 2016–2022
    • Revenue Forecast Discussion
    • Market Share Analysis
      • Table Clinical Laboratory Services Market: Diagnostics Expenditure by Province, Canada, 2017
    • Market Share Analysis—Private Lab Market
  • Company Profiles—Tier I
    • LifeLabs
    • Dynacare
    • DynaLIFE Dx
  • Last Word
    • Key Conclusions and Future Outlook

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