Reflecting on 2024: Insights from Clinical Laboratory Experts

As the calendar turns to 2025, a panel of distinguished clinical laboratory industry experts recently convened to reflect on the pivotal developments that transpired in 2024. Their roundtable discussion, hosted by LigoLab CEO Suren Avunjian, highlighted impactful trends, surprising innovations, and ongoing challenges that shaped the industry. 

Here are the key takeaways from their wide-ranging and insightful conversation, followed by brief bios for all three experts. 

Artificial Intelligence: Early But Promising Developments

Bruce Friedman expressed enthusiasm for the rapid deployment of artificial intelligence (AI), emphasizing its early-stage evolution. "I’m curious to see how and where AI will be deployed next," he remarked, acknowledging the great potential of AI enhancement of diagnostics and lab operations.

Khosrow Shotorbani honed in on AI’s impact on histology, particularly its pattern recognition capabilities. “This emerging application has significant implications for lab efficiency and accuracy,” he said.

Learn More: Explore LigoLab’s Anatomic Pathology LIS Lab Solutions

Mergers and Acquisitions: An Accelerated Pace

The laboratory industry experienced a noticeable uptick in mergers and acquisitions (M&A) in 2024. Stan Schofield highlighted the challenges and implications of this trend:

• Operational Efficiency: "Labs that are not the most efficient and cost-effective remain targets of consolidation."
• Asset Monetization: Health systems are increasingly looking to sell their labs to offset financial losses. "If the lab hasn’t proven itself valuable, productive, and profitable, it is in danger of being sold."
• Leadership’s Role: Schofield stressed the importance of strong leadership, operational productivity, and robust laboratory information system software (LIS systems) to safeguard labs from this vulnerability.

Khosrow Shotorbani likened the situation to a battleship heading into battle without radar, underscoring the need for CEOs and CFOs to understand the consequences of such decisions.

Learn More: Comparing LigoLab Informatics Platform with Legacy Laboratory Information System Software

Digital Pathology: A Technological Leap

Digital pathology continued to reshape the field in 2024. Stan Schofield noted a shake-up among lab vendors, with one of the top three brands exiting the market. Despite these disruptions, laboratories are adopting new skills to harness the advantages of digital tools.

Bruce Friedman highlighted digital pathology efficiencies, replacing traditional practices like pathologists traveling to perform frozen sections. With the digital transformation, "most of the work is done by technicians," with pathologists focusing on quality control and complex cases.

Looking ahead, Friedman predicted that within five years, about 80 percent of routine surgical pathology cases will be diagnosed nearly totally and independently by AI, requiring pathologist review only on random cases for QC purposes.

Khosrow Shotorbani also emphasized the cost savings and scalability of consolidating histology in a network model, with digital images providing unprecedented mobility and collaboration opportunities.

Learn More: Digital Pathology: The Future is Here

Cybersecurity: A Growing Priority

As cyberattacks surged in 2024, Stan Schofield identified cybersecurity as a top-five issue for laboratories.

• Increased Attacks: Large health systems faced costly breaches, while smaller labs suffered frequent but lower-scale attacks.
• Preemptive Measures: Lab vendors must now pass rigorous cybersecurity checks before deploying new instruments.
• Financial Strain: Limited budgets for smaller labs make them particularly vulnerable, underscoring the need for stronger defenses industry-wide.

Learn More: LigoLab’s Enhanced Cybersecurity Solutions Give Customers Added Protection and Peace-of-Mind

Looking Ahead to 2025: Optimism Amid Challenges

The veteran lab experts offered mixed perspectives on the future.

Khosrow Shotorbani expressed concern over rising costs and reduced margins but remained optimistic about the lab’s critical role in managing chronic conditions. "Labs provide more actionable information for the cost than any other healthcare sector," he emphasized.

Stan Schofield hoped for regulatory relief under the new administration, particularly regarding lab-developed tests (LDTs) and reimbursement cuts. He stressed agility, creativity, and commitment as vital to overcoming challenges in 2025.

Bruce Friedman cautioned against the growing political skepticism toward expertise in general and the focus on health issues in particular. As proof, he noted vaccine and fluoridation skepticism. "This attack on expertise will be a long-term phenomenon," he warned. “I don’t know how we can prosper in an environment where experts are no longer trusted.”

On-Demand Webinar (featuring Bruce Friedman, Stan Schofield, and Khosrow Shotorbani): Emerging Technologies of the Future Lab

Meeting the Challenges with Collective Resolve 

The year 2024 was marked by significant transformations, from advancements in AI and digital pathology to pressing concerns over cybersecurity and M&A activity. As the laboratory industry steps into 2025, it faces a dual mandate: to embrace innovation while safeguarding the integrity and resilience of its operations and finances. Whether these challenges will yield growth or further strain depends on the collective resolve of laboratories, health systems, and leaders to navigate an increasingly complex landscape.

A Who’s Who of Laboratory Expertise

Our heartfelt thanks go out to Bruce, Stan, and Khosrow for their contributions to this forum. As we move into 2025, expertise and guidance from such gentlemen will ensure lab leaders always have a seat at the executive table and operate in the best interests of lab medicine. 

Industry Expert Bios

Bruce A. Friedman, MD, is an Emeritus Professor of Pathology at the University of Michigan Medical School and a respected thought leader in the intersection of healthcare and technology. His specialties include pathology informatics and strategic planning in pathology and lab medicine. Winner of the 2022 Distinguished Service Award from the API, Dr. Friedman has significantly contributed to the field through his research, teaching, and writing. He recently authored an op-ed for CAP Today Recommends, where he explored the transformative impact of for-profit tech corporations entering the healthcare industry and increasing competitiveness in primary medical care.

Stan Schofield is a recognized leader in the healthcare and laboratory industries. He is the Founder and Managing Principal of The Compass Group, an association of 32 regional laboratory corporations affiliated with some of the largest and most prestigious healthcare systems in the United States. Stan previously served as President of NorDx, a prominent regional laboratory corporation, and Senior Vice President of Laboratory Services within the MaineHealth system. He retired from both roles in January 2023, leaving behind a legacy of innovation and collaboration in laboratory services.

Khosrow Shotorbani is the CEO and founder of Lab 2.0 Strategic Services, LLC, and a prominent advocate for Clinical Laboratory 2.0 through his work with Project Santa Fe. As the former President and CEO of TriCore Reference Laboratories, he led the organization's strategic direction, emphasizing leadership, innovation, operational excellence, and financial health. Under his guidance, TriCore pioneered initiatives leveraging laboratory data to improve health outcomes and reduce costs. A visionary in the diagnostic services field, Mr. Shotorbani played a key role in establishing Project Santa Fe, aimed at redefining the economic valuation and strategic placement of diagnostic services.