Hospital Lab Management Agreement

A hospital laboratory ensures consistent outcomes and an integrated medical record in all aspects of patient access, from outpatients to inpatients to long-term care. A hospital-based laboratory outreach program provides a mechanism to establish and maintain relationships with patients, providers and institutions. Given the general resistance of most hospitals to change and risk aversion, it is best to convince all stakeholders to support the initiative. Perhaps the most neglected interest group is medical personnel in the broadest sense. While they may not be the key to approving a business, they are essential for it to function in the long run. Sharing their vision of the benefits of a proposed agreement with practicing clinicians and obtaining their feedback on the proposed service offering will help provide support during the first transition and duration of the agreement. Karen Hohenstein, Executive Director of the Healthcare Team at Navigant Consulting1. How are partnerships structured? These types of partnerships are structured to leverage the capabilities of each organization. Hospitals operate high-quality laboratory surgeries that must operate 24/7 and are close to doctors who need laboratory services. However, hospitals typically lack the pre-analysis and post-analysis tools (such as EHR connectivity, customer service, billing, sales, and marketing) to provide high-quality outreach laboratory services to the medical community.

The commercial laboratory offers these services on a larger scale than hospital laboratories, a knowledge of how to manage the laboratory at a lower cost. By bringing together the skills of both organizations in a partnership, you can create a more efficient hospital lab and a better outreach lab program that any single organization could provide. In addition, most large commercial laboratories have a higher purchasing power than hospital laboratories and are able to reduce the overall costs of laboratories. There is no uniform legal definition for a laboratory joint venture agreement. Typically, a joint venture requires the companies involved to invest resources, create a new business unit, and share the profits from the business. In addition to start-up resources and profits, decision-making is also shared by the members of the joint venture, with a partner typically holding a majority position. NEWS OF AN AGREEMENT TO MANAGE HOSPITAL LABS AT THE HOSPITAL BETWEEN Denver-based Healthone and Quest Diagnostics Incorporated is the second time in six months that the public lab company has entered into an inpatient lab management deal with a multi-hospital healthcare system. Ther. The other hospital laboratories will be converted into rapid reaction laboratories. “As we want to improve service,” Wheeler noted, “we will determine the specific tests to be performed in each rapid response lab based on time requirements, distance from the main lab, and similar criteria.

There is no cookie-cutter solution that can be applied to all hospitals. » 3. What are the characteristics of hospital systems that are likely to benefit most from a partnership? By developing effective strategies for managing the use and access to appropriate diagnostic tests (not necessarily the lowest cost), the laboratory can have a significant impact on patient outcomes and contribute to downstream efficacy. As health care evolves, other laboratory models will continue to exist. Regardless of the model or structure, the role of the laboratory must remain constant: to provide the highest quality tests that help diagnose and treat diseases and improve patient outcomes. As with the outsourced model, the technical support contract typically includes a five-year contract. If the facility decides to terminate the contract, it must purchase or replace all necessary laboratory equipment and accessories, as well as ensure that there are sufficient personnel to perform the technical and purchasing tasks previously performed by the commercial laboratory staff. These outsourced agreements include contracts that typically last five years.

If the facility decides to terminate the outsourced agreement, it is necessary to rebuild the laboratory, including the purchase of equipment and consumables, the hiring of staff, and the acquisition of a new CLIA license. CLIA recertification can take up to two years to complete the aptitude test and inspection cycles. The scope of the project is breathtaking. Tenet`s 30 hospital laboratories perform nearly seven million tests a year. Assuming an average cost per test of $12.00, the combined annual expenses of these laboratories could easily be more than $84 million. Tenet`s current 30 hospital laboratory administrators are applying for 12 available laboratory manager positions. Depending on the size of each rapid response laboratory, each new director will be responsible for one to four locations. Laboratory directors become employees of SBCL. Once the new Laboratory Administrator positions are filled, these individuals will assist in developing the specific re-engineering plan for the Rapid Response Laboratory sites under their jurisdiction. [Editor`s note: This article adopts a question-and-answer format and explores the individual challenges and mutual benefits of these partnerships. It offers the views of several industry experts, including Tom Hirsch, President of Laboratory Billing Solutions; Thomas Tiffany, CEO of PAML; Noel Maring, Vice President of Hospital Affiliations at Sonic Healthcare; and Karen Hohenstein, Executive Director of Navigant Consulting`s Healthcare Team, who will each address topics specific to their area of expertise.] P. Thomas Hirsch, President of Laboratory Billing SolutionsGovernments can take from months to years.

This strongly depends on the particular situation of the hospital and the management involved in the process and negotiation. Leadership changes at the hospital can hinder the process, as new leaders need to be informed of the status of discussions. In some circumstances, a change in management can accelerate or initiate a process where the new management has already had positive experiences working with a commercial laboratory. In addition to the motivations and sense of urgency of the participants, the nature of the agreement can affect the duration of the discussions. Pure laboratory management contracts can generally be concluded more quickly than formal joint ventures. While a management agreement normally involves the approval of pathologists and medical staff, it would require limited participation and input from the board of directors. A joint venture with a separate legal entity and articles of association, formal valuation, and potential capital investments by both parties requires an expanded due diligence and approval process, including the hospital`s board of directors. In this model, a commercial lab takes over the management of the equipment and non-personal aspects of the lab.

The main premise is that the commercial lab will be able to offer testing at a lower total cost by leveraging its own purchase agreements. In search of the external know-how, experience and management philosophy needed to bring about radical change, Tenet focused on national commercial laboratories. .