Diagnostics and Market Disruption - The New Normal
The laboratory and diagnostics industry has experienced tremendous change in recent years. Top of mind, of course, is PAMA. With cuts totaling up to 30% over the next three years underway, laboratories are operating in one of the most challenging environments seen to date. As had been predicted, labs have had to tighten up their operations to mitigate the lost revenues. Some labs have already shuttered their doors, while others have merged or restructured to stay competitive.
While PAMA has been (and will continue to be) a major disruptor in our industry, it is far from the only one. Now, more than ever, disruption is the new normal. Other industry trends such as continued industry consolidation, changes in working relationships with payors, rising consumerism, the entry of nontraditional competitors in the healthcare space, and the emerging focus on recognizing the intrinsic value of data, are all reshaping our industry and what we need to do to thrive in this dynamic environment.