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2017 Laboratory Market Report

2017 Laboratory Market Report

Market-At-A-Glance
The laboratory testing market was $72 billion in 2016. The largest market segments were hospital labs at 58%, independent labs at 33%, and physician office labs at 4% of the total market in 2016. Medicare remains the largest payer for lab testing, with $7 billion in spending as of 2015. The top 25 tests account for 59% of Medicare’s lab spending. Legislative reform aims to curb Medicare spending in the near future, and laboratory revenues could fall by as much as 50% by 2023.

Genetic, Molecular, And Companion Diagnostics Are Growth Areas
Genetic testing is on the rise with more than 65,000 testing products available as of 2016. Similarly, molecular testing, valued at $6.45 billion globally, continues to gain traction as a more accurate alternative to common rapid tests. Companion diagnostics, a $2.8 billion global market, are projected to grow to $5.8 billion by 2019 with continued development of new therapeutic products requiring companion tests.

Hospital Laboratories To Receive Increased Investment
Hospital CFOs report increased investment in laboratory departments. An estimated 23% of hospitals are investing in new capital equipment, while 16% are replacing or updating existing capital equipment. Hospital laboratory directors point to staff hiring, increased productivity, and modernization as key elements of their 2017-18 strategic plans.

Physician Office Labs Growing In Number
Physician office labs (POLs) make up nearly half (47.8%) of all U.S. laboratories. The number of facilities has grown steadily to a total of 121,973.


Laboratory Market Overview
Projected Growth For Lab Market
Medicare Spending Trends Affect POLs, Independent Labs
PAMA Cuts Medicare Dollars For Laboratories
Laboratory Medicare Revenues Could Fall 50% By 2023
Few Tests To Receive Reimbursement Increases
Labs Do More For ACOs, Feel Undercompensated
Molecular Pathology Procedures Have More Associated Products
Global Companion Diagnostics Market Projected To Reach $5.8 Billion By 2019
Rapid Growth Projected In Global Molecular Testing
Range Of Genetic Tests Increases
U.S. Direct-To-Consumer Market To Reach $350 Million By 2020
Preventive Care Driven By Lab Testing
Two New Tests Added To Top 25
Shifts In Top 25 Tests
Payment, Coding May Differ Between Test Categories
Hospitals Target Over-/Underutilization In 2016
Bedside Testing Improves Efficiency
POCT Global Market Projected To Reach $11.7 Billion By 2024
Laboratory Investment Increases In 2017
Seasonal Lab Volumes Increase In Q4, Q1
Number Of POLs Grows To 120,000 In 2016
Nearly Half Of All U.S. Labs Are POLS
Reference Labs 1/3 Of U.S. Lab Market
Lab Tests Used In 98% Of Inpatient Stays
GHX Market Breakdown Of Clinical Laboratory-Related Product Categories Sold Through Distribution
GHX Lists Clinical Laboratory Products Sold Through Distribution
Definitions

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