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2016 Laboratory Market Report

2016 Laboratory Market Report

Market-At-A-Glance
Diagnostic testing makes up about 55% of the $52.5 billion diagnostic medical testing market (imaging services comprise the balance). Revenues are projected to grow at a 2.7% rate over the next five years as emphasis on prevention grows. Medicare is the largest payer for lab testing. Almost all tests reimbursed under Medicare Part B occur in one of three settings: independent labs at 57%, hospital-based labs at 24%, and physician office labs at 19%. About 60% of Medicare spending under the clinical lab fee schedule goes for 25 tests with thyroid tests, comprehensive metabolic panel, and a complete blood count test topping the list.

Key Topics
The laboratory market is driven largely by technological innovation. While just five years ago it was impossible to take an at-home genetics test and obtain the results in your own home, today’s technology allows for that and a great deal more. Molecular testing, genetic testing, and companion diagnostics are all growth areas. Testing also has the potential to play a major role in controlling or preventing epidemics.

Healthcare Policy
The Protecting Access to Medicare Act of 2014 (PAMA) will bring about the biggest change in lab payments since 1984. Beginning in 2018, Medicare rates will be based on rates paid by private payers – which are generally much less than current rates. The change is expected to dramatically decrease Medicare payment amounts for most lab services; the Congressional Budget Office projects savings of $2.5 billion over 10 years. The law limits year-to-year reductions in payment rates to 10% a year from 2018 through 2020, and 15% from 2021 through 2023.


Laboratory and Diagnostics Market: Key Definitions
Laboratory Testing Market Growth Projected To Increase
Hospital Labs Lead Market And Volumes
Laboratories Struggle To Meet Demands Of The ACA And ACOs
Electronic Laboratory Reporting Use Grows
71.3% Of Labs Perform Waived Tests Only
Companion Diagnostics Poised For Growth
Molecular Testing To Surpass $10B By 2023
Genetic Testing Market Exceeds $4B Worldwide
The Role Of Testing In Preventive Care
Rapid Testing For Influenza Expected to Grow
The Value of Lab In Diagnostics: Ebola, Zika Epidemics
Lab Payments Set For Significant Change
Industry Expresses Concern Over Rate-Setting Methodology
Payment, Coding May Differ Between Test Categories
Lab Tests Covered Under CLFS Represent Just 1.2% Of Medicare Spending
Top 25 Tests Represent 60% Of Medicare Part B Spending For Lab
GHX Lists Top Clinical Laboratory Categories Sold Through Distribution
GHX Reports Clinical Laboratory Submarkets

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