Redline: May 23, 2008

 

2007 Status Report on Laboratory Medicine
 

 

The Centers for Disease Control and Prevention commissioned a report on the status of laboratory medicine.  Recently made available, the 2007 draft report is open for comments through May 30, 2008.
 
The report examines several aspects of laboratory medicine:  value; market profile; workforce; quality and the total testing process; quality systems and performance measurement; laboratory information systems; federal regulation; and reimbursement. 
 
Among the 2007 findings, CDC estimates that approximately 6.8 billion laboratory tests are performed in the United States, with revenue totaling approximately $52 billion.  Clinical pathology is the largest sector compromising 66% of all laboratory tests.  Anatomic pathology and cytology assume 23% of the market, and molecular and esoteric testing combines 8% of current laboratory production.  Due to limited research, the report notes that it is difficult to demonstrate ultimately the value of laboratory medicine.
 
Recommendations were interspersed throughout the report.  Noting the growing shortage of laboratory professionals, the report suggests that the laboratory sector "redefine staffing qualifications and workforce level requirements."  To improve quality, the report advises expansion of laboratory consultation services for clinicians; development of quality control, performance evaluation and test reproducibility standards for anatomic pathology; employment of graphical displays in reporting results for proteomic and genetic tests; standardization of  data elements and report formats for all laboratory tests; training operators in the use of point-of-care testing devices; and increased use of quality management systems among laboratories.  The report recommends a concentrated focus on improvements and standardization in the pre- and post-analytical phases of testing.
 
In the area of information technology, the report notes that differences in data interchange and terminology standards must be resolved before laboratory data may be fully integrated into clinical practice.  Due to technological advances and volume demands, laboratory information systems must have capacity to store and retrieve large quantities of data.  Also, to accommodate whole-tissue-processing, digital pathology systems need to grow capacity for high-power computation, data storage, image formatting, and processing algorithms.
 
The report provides an overview of federal regulation for laboratories, including a look at the Clinical Laboratory Improvement Amendments of 1988 (CLIA).  While noting that laboratory performance has improved under this oversight, some problems remain.  To remedy concerns, evaluation protocols for quality control and validation are under development.  Actions taken by the Centers for Medicare and Medicaid Services to improve CLIA were examined.  The report suggests that CLIA may be insufficient to ensure quality for genetic testing, but notes that recent guidance documents by the Food and Drug Administration may assist in the oversight of laboratory-developed tests.
 
Regarding reimbursement, the report suggests that a redesign of the Medicare payment system for laboratory services is needed.  The lack of reliable data on the relationships among current production costs, technological changes, economies of scale, and historical costs is problematic, and studies evaluating the appropriateness of payment rates have not been completed.  Wide variation among multiple fee schedules and archaic coding methods were also suspect in the concern over reimbursement rates.  The report recognizes that private payers often follow the lead of Medicare payment practices.
 
Appendix B of the report provides a matrix of quality indicators for performance measurement from the College of American Pathologists along with additional indicators.  It demonstrates where efforts have been made to study or develop quality indicators and where there may be opportunities for future study.  The CDC hopes to use this report as a springboard for "transforming laboratory medicine over the next decade." 
 

VisionWalk a Success!
Held on a beautiful Saturday morning, VisionWalk 2008 was a tremendous success!  The Auburn Health Strategies team raised significant funds, which will help in the fight against blindness.
 
Leading-edge research in genetics, gene therapy, retinal cell transplantation, artificial retinal implants and pharmaceutical and nutritional therapies are all made possible with funding from the Foundation Fighting Blindness and its VisionWalk event.
 
Thanks for being part of the Auburn Health Strategies team! 

In This Issue
VisionWalk a Success
Genetics, Health and Society Snippets
Building an Institute

An article chronicling the establishment of the Institute for Quality in Laboratory Medicine, its accomplishments and challenges, is published in the June 2008 edition of Elsevier’s Clinics in Laboratory Medicine.  The President of Auburn Health Strategies, LLC recounts the vision behind the Institute and provides an unique glimpse into how cooperation and collaboration among diverse parties can achieve objectives.  An abstract of the article may be viewed here.   

 
 

Auburn Health Strategies works behind the scenes to position its health and science clients to achieve maximum success.  To inquire how Auburn Health Strategies may assist with your strategic business needs, please contact us at 202-390-3932. 

Genetics, Health and Society Snippets

The Genetic Information Nondiscrimination Act of 2007 became Public Law 110-233 after President Bush signed the bill on May 21, 2008.  Representative Louise Slaughter (D-NY), a tireless advocate for the legislation since 1995, stood behind the President and next to her congressional colleagues as the bill was signed in the Oval Office.  The new law prohibits health insurance companies canceling, denying, or changing premiums based solely on an individual’s genetic predisposition.  Also, genetic information may not be used by employers in hiring and firing decisions. 


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The Secretary’s Advisory Committee on Genetics, Health and Society released its report, Realizing the Potential of Pharmacogenomics: Opportunities and Challenges in May 2008.  To read the report, please click here.