Healthcare Disruptors & Transition Strategies for Success: A Webinar Recap

LigoLab recently hosted Healthcare Disruptors & Transition Strategies for Success, an engaging webinar that brought the laboratory community together. 

The spotlight was on Stan Schofield, a luminary in the realm of healthcare and laboratory workflow management, who brought his wealth of experience and deep industry knowledge to the fore. The webinar served as a beacon, illuminating the labyrinth of the current laboratory industry landscape.

From the shifting sands of workforce dynamics to the unpredictable winds of laboratory billing (laboratory revenue cycle management, lab RCM), specifically insurance and government payors and the stormy seas of declining reimbursement and rising costs, Schofield's insights provided a compass for laboratories seeking not just to survive, but thrive in this volatile environment.

The webinar was a journey that provided attendees with a clearer understanding of the challenges they face and the strategies they can employ to overcome them. It was an opportunity to learn from a seasoned expert, gain insights that can be applied to their organizations, and be part of a conversation shaping the future of the clinical laboratory industry.

Learn More: Streamline Laboratory Workflow Management With Customized Lab Reports & Unmatched Client Support

Overview: Navigating the VUCA Landscape of the Clinical Laboratory Industry

Schofield kicked off the webinar with a candid assessment of the current state of the independent clinical laboratory industry. Drawing from his extensive experience, he painted a picture of a complicated and challenging environment.

Schofield stated: 

"We are in a VUCA world. It's volatile, it's uncertain, it's complex, and it's ambiguous. That's the world we live in." 

This powerful statement set the tone for the discussion, highlighting independent laboratories' difficulties in today's rapidly changing healthcare landscape.

He then delved into the disruptive themes causing this volatility and uncertainty. One of the key disruptors he highlighted was the issue of workforce availability and stability. 

"The workforce is a major issue. We have a shortage of qualified personnel, causing significant disruption in our industry."

Automation was another key theme. Schofield emphasized the importance of automation in ensuring the continuity of services, especially in the face of workforce challenges. 

"Automation is not just a luxury; it's a necessity. We need our services open and operating, and automation is key to achieving this."

Schofield also discussed the challenges posed by insurance payors and government payors. He highlighted the financial pressures tied to the laboratory billing process, consolidations, and reductions in this area, which are also causing significant disruptions.

The ongoing pressures of declining reimbursement and increased labor and material costs were also a key focus of Schofield's discussion. He pointed out the squeeze that laboratories are feeling as they grapple with these lab RCM challenges and laboratory billing system functionality:

"We are caught in a pincer movement. On one side, we have declining reimbursement, on the other, we have rising costs. This leads to lost margins and is a major disruptor in our industry."

Schofield's overview of the current state of the laboratory industry was enlightening and sobering. His insights provided a clear understanding of the challenges independent laboratories face setting the stage for the rest of the webinar, where he would go into strategies for navigating these challenges.

Learn More: Laboratory Billing 101: The Differences Between In-House Billing and Outsourced Billing Services

Unpacking the Key Disruptions in Today's Laboratory Landscape

Schofield identified several key disruptive themes that are currently shaping the industry. His insights, drawn from decades of experience, provided a comprehensive understanding of the challenges and opportunities resulting from these disruptions.

• Workforce: Schofield highlighted the workforce as a significant factor affecting the industry. He discussed the issues of availability, stability, reliability, competition, and wage pressures.
• Automation: The push toward automation, according to Schofield, is driven by the need to keep services open and operating, especially in the face of workforce challenges. 
• Insurance Payors and Government Payors: Schofield also referenced insurance and government payors. He highlighted the financial pressures, consolidations, and reductions in this area, causing significant disruptions in the industry.
• Lost Margins: The ongoing pressures of declining reimbursement and increased labor and material costs were also a key focus of Schofield's discussion. He pointed out the squeeze laboratories feel as they grapple with these financial challenges. 
• Mergers and Acquisitions: Schofield noted more mergers and acquisitions due to lost margins and contract labor costs. This trend, he suggested, is reshaping the industry.
• Assisted Intelligence and Informatics: The rise of AI and informatics is a significant trend to watch, according to Schofield. He suggested that these technologies could ultimately address some of today’s biggest challenges.
• Crisis Management: The recent pandemic and workforce issues have highlighted the importance of effective crisis management. Schofield emphasized the need for independent laboratories to be prepared for crises with robust plans in place to manage them.
• Consumer and Urgent Care Delivery: Schofield also discussed the proliferation of consumer and urgent care services, suggesting that this trend is changing how medical labs and other providers deliver healthcare.
• Supply Chain Constraints: Finally, Schofield touched on the issue of supply chain inefficiencies. These constraints, he suggested, are causing significant disruptions in the industry and need to be effectively managed.

Learn More: How AI Can Propel Medical Laboratories into a New Era of Growth

Blueprint for Success: Schofield’s Five Rules for Successful Laboratories

Schofield next shared his "Five Rules for Successful Laboratories." These rules, drawn from his extensive experience in the industry, provide a roadmap for laboratories seeking to navigate the current laboratory workflow management and lab billing disruptions and achieve success.

Add Clients

Schofield underscored the significance of expanding the client base as a cornerstone for successful laboratories. This strategy is not limited to traditional outreach methods to providers but also embraces innovative approaches that reflect the evolving landscape at present.

"Adding clients is a critical part of our growth strategy. We need to be proactive and innovative in reaching out to potential clients and  demonstrating our value."

Schofield highlighted three key strategies for adding clients:

• Clinical Integrations with Health Systems: He suggested forming strategic partnerships with health systems to provide integrated laboratory services that increase volumes, improve patient care, and enhance operational efficiencies.
• Direct Contracting with Employers: As more employers seek to control healthcare costs and improve employee health there is a growing opportunity for laboratories to contract directly with employers to provide testing services.
• Direct-to-Consumer Lab Testing: With the rise of consumerism in healthcare, there is an increasing demand for direct-to-consumer lab testing. Laboratories can tap into this trend by offering convenient, accessible, and affordable testing services directly to consumers.

Learn More: Highlighting the Versatility of the TestDirectly Direct-to-Consumer Lab Testing Portal

Schofield's approach to adding clients is not just about increasing numbers, but about building meaningful relationships based on value and trust. It's about understanding the unique needs of different clients - from health systems to employers to individual consumers - and tailoring services to meet those needs. 

It's a strategy that requires business acumen and a deep understanding of the changing dynamics of the healthcare industry.

Keep Clients

Schofield stressed the importance of not just acquiring clients, but also retaining them. He said client retention is a multifaceted process beyond delivering excellent service. It requires a proactive and comprehensive approach to building and maintaining strong client relationships.

"Client retention is just as important as client acquisition. We must build strong relationships with our clients and continually demonstrate our value to them."

Schofield outlined four key strategies for keeping clients:

• Account Rep Visits/Luncheons: Regular face-to-face interactions with clients help build strong relationships and address any issues or concerns they may have. These interactions also provide opportunities to demonstrate the laboratory's commitment to its clients.
• Annual Business Reviews: These reviews provide an opportunity to assess the laboratory's performance, identify areas for improvement, and discuss plans and strategies. They also are a platform for clients to share their feedback and suggestions.
• Information Technology Connectivity: In today's digital age, seamless IT connectivity is crucial for efficient and effective service delivery. It can enhance the client's experience, improve operational efficiency, and facilitate better communication and collaboration.
• Keeping the Office Staff Happy: Personnel satisfaction is often overlooked, but it plays a crucial role in client retention. Happy and motivated staff are more likely to provide excellent service, leading  to higher client satisfaction and retention.

Client retention is not a passive process. 

It requires ongoing effort, commitment, and strategic planning. It's understanding needs, exceeding expectations, and continually demonstrating the laboratory's value. It's building strong relationships based on mutual trust and respect.

Create Revenue Opportunities

Schofield underscored the significance of creating new revenue opportunities as a vital strategy for successful laboratories. He emphasized the need for laboratories to be creative and proactive in identifying and capitalizing on these opportunities.

Schofield suggested several ways to generate new revenue streams:

• Offering New Services: This could involve introducing new tests, providing specialized services, or offering value-added services such as consulting or data analysis.
• Expanding into New Markets: Examples include targeting new customer segments, entering new geographical areas, or venturing into related healthcare services.
• Monetizing Existing Capabilities: This could involve finding innovative ways to generate revenue from the laboratory's existing resources, capabilities and expertise. For example, a laboratory could offer training services, license its technology, or sell its data.

Creating new revenue opportunities is not just about increasing sales or profits. 

It's ensuring the laboratory's long-term sustainability and growth. It's being adaptable, innovative, and entrepreneurial. It's continually exploring and exploiting opportunities.

Get Paid

Schofield stressed the importance of effective lab billing for the financial health of laboratories. This aspect of laboratory operations while often overlooked, plays a critical role in maintaining financial stability and ensuring a lab’s ability to continue providing services.

"We need to ensure that we are getting paid for all the services we provide. This involves having an effective laboratory billing system and laboratory billing process and actively managing our revenue cycle."

Effective laboratory billing and lab revenue cycle management involve several key components:

• Accurate and Timely Billing: This includes ensuring that all services are billed correctly and promptly, reducing the likelihood of lab billing errors that can lead to delayed or denied payments.
• Active Lab Revenue Cycle Management: This involves monitoring and managing the entire laboratory billing process, from patient registration and service provision to billing and collection. It includes claims submission, payment posting, denial management, and patient collections.
• Regular Audits and Reviews: This involves reviewing and auditing lab billing/lab revenue cycle management processes to identify and address any issues or inefficiencies.

Getting paid involves managing the entire RCM cycle effectively and efficiently; ensuring that the laboratory's financial resources are managed wisely and used optimally; and maintaining the health and sustainability of the laboratory.

Reduce Expenses

The final rule for successful laboratories, as outlined by Schofield, is the reduction of expenses. In a landscape characterized by declining reimbursements and escalating costs, managing and minimizing expenses is crucial for the survival and growth of any laboratory.

Reducing expenses involves a strategic and systematic approach:

• Efficiency Improvements: This means streamlining processes, eliminating waste, and improving productivity. It's doing more with less and finding ways to deliver the same excellent service at a lower cost.
• Cost-Effective Purchasing: For example, negotiating with suppliers for better prices, exploring bulk purchasing options, and making cost-effective decisions about equipment and supplies.
• Optimized Resource Utilization: This includes ensuring that all resources, including staff, equipment, and facilities, are used optimally and efficiently.
• Strategic Investments: This involves making smart investments in technology and equipment that improve efficiency and reduce long-term costs.

Learn More: How to Prepare for Tomorrow’s Tech-Enabled Clinical Lab

"We need to be vigilant in managing our expenses. This involves continually looking for ways to reduce costs without compromising the quality of our services."

Reflecting on Schofield's insights, it's clear that reducing expenses is not just about cutting costs. 

It's making strategic decisions that improve efficiency, optimize resource utilization, and ultimately enhance value. It's ensuring that every dollar spent contributes to the laboratory's mission of providing high-quality, cost-effective services.

Wrapping Up: Key Takeaways & Forward-Looking Insights

Schofield's insightful webinar concluded with a dynamic Q&A session, where he addressed more pressing topics. These ranged from the potential impact of AI on laboratory operations and services to the strategies that can be employed to compete effectively with large national labs. His responses were informative and provided actionable advice, reflecting his deep understanding of the industry and its evolving challenges.

One of the key takeaways from the Q&A was Schofield's perspective on AI. 

He acknowledged the transformative potential of AI but also cautioned that its practical implementation in diagnostics and other critical areas is still years away. However, he encouraged laboratories to stay abreast of these developments and to start considering how AI could be integrated into their operations in the future.

When asked about strategies for competing with large national labs, Schofield emphasized the importance of service differentiation. He suggested that regional labs could leverage their ability to provide personalized service and build strong relationships with clients, something that large national labs often struggle to do.

The webinar, part of LigoLab's ongoing webinar series, underscored the pathology lab software company's commitment to fostering knowledge sharing and discussion within the laboratory industry. 

Learn More: Best Pathology Lab Reporting Software - 2025 Buyers Guide and Checklist

Through this series and other pathology software marketing initiatives, LigoLab provides a platform for industry professionals to gain insights and understand the disruptive themes shaping it, and learn about the strategies that can help them navigate this challenging environment.

As we look forward to future webinars, LigoLab remains committed to bringing you valuable insights and discussions on the latest trends, challenges, and opportunities. 

Editor’s Note: Click HERE to access the Schofield webinar on-demand. 

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