New York, NY (PRWEB) January 28, 2014
Faced with daunting reimbursement cuts and other challenges, the world market for clinical laboratory services grew just over one percent in the past five years, according to Kalorama Information. The healthcare market research publisher estimated at the market at $99.1 billion for 2013, up 1.3% from the estimated value in 2008 of $92.7 billion in its new report “Clinical Laboratory Services (Markets, Growth Opportunities, Competitive Analysis and Competitor Profiles).”
Kalorama’s report notes that while there are a number of drivers for this market: aging populations, a growing incidence of chronic diseases, increasing emphasis on diagnosis and disease monitoring, and a growth in advanced testing technologies and practices. However, there are also a number of inhibitors to growth such as the growing emphasis to reduce health costs and uncertain economic conditions, and these are dampening growth.
“Today, clinical laboratories are improving a physician’s ability to treat patients like never before,” said Melissa Elder, analyst for Kalorama Information and the author of the report. “There is a shift in healthcare utilization primarily due to reducing healthcare spending which makes the laboratory an even more valuable part of the treatment plan. But cost-cutting measures mean tests may not see the benefits of hospital-stay reducing factors”
In the United States, the U.S. Congress ultimately has the responsibility to adjust the Medicare fee schedule according to economic factors, including controlling costs, monitoring utilization, and ensuring adequate delivery of health care services. The passing of the Patient Protection and Affordable Care Act generated a number of provisions on laboratory fee schedules, mostly in the direction of reductions. These reductions were effective starting 2011 and will continue to be adjusted through 2015. Medicare has slashed reimbursement amounts for many common tests such as Vitamin B12, triglycerides and glucose nearly six percent between 2009 and 2013. Some tests, such as total iron or aluminum tests have been cut 19% and 30% respectively during that period.
“As the world’s largest healthcare market, the U.S. cuts are affecting the larger global market,” Elder said.
Bio-Reference Laboratories, Quest, Lab Corp, Myriad, and Spectra are among the leaders in the industry. Quest Diagnostics and LabCorp have advantages in the market due to the wide exposure, large number of locations, and greater financial positions. Smaller, independent laboratories may find it difficult to keep up with the fast changing industry largely due to limited financial abilities to invest in new technologies and testing services. Some laboratories, such as Bio-Reference Labs have found success in operating on a regional basis while companies such as Myriad Genetics and Genomic Health remain competitive by focusing on more specialized genetic-based testing.
Kalorama Information’s report, “Clinical Laboratory Services (Markets, Growth Opportunities, Competitive Analysis and Competitor Profiles),” contains more information on these markets including segment estimates and corporate profiles. The report can be found at Kalorama Information's website at: http://www.kaloramainformation.com/Clinical-Lab-Services-7931450/.
About Kalorama Information
Kalorama Information, a division of MarketResearch.com, supplies the latest in independent medical market research in diagnostics, biotech, pharmaceuticals, medical devices and healthcare; as well as a full range of custom research services. We routinely assist the media with healthcare topics. Follow us on Twitter, LinkedIn and our blog.