Inside the Lab Industry: Reimbursement Cuts & Payor Denials Belie Industry’s Steady Growth 

The worldwide market for clinical laboratory services has grown 2.9% per year since 2010 with an estimated value of $121.5 billion in 2019. And over the next five years that growth is expected to increase at a compound annual growth rate (CAGR) of 3.8%, reaching a market value of $146.4 billion by 2024. That’s the headline of a new report from healthcare market research firm Kalorama Information. What’s Driving Growth  PAMA and reimbursement cuts, increasing payment denials and overall economic uncertainty belie the long-term growth of the lab services industry. Thus, while times are tough for individual labs and lab entities, the industry is on an almost inevitable path to growth. Most medical treatment decisions run through the lab. According to Kalorama, 70% to 80% of physicians’ diagnoses are based on lab test results. Drivers for continued growth include:  The aging population;  The growing incidence of chronic diseases and management;  Increasing utilization of diagnosis for disease monitoring; and  Advances in lab testing technologies and practices.  Growth by Lab Market Segment  According to Kalorama, clinical chemistry (routine and essential testing) represents the largest market segment by far, followed by immunology and microbiology. Market Segments Ranked by Global Worth Clinical chemistry (routine […]