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February 2025

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LAByrinth

Industry, Billing, and Operational News for Laboratories

Message from Jim:

LAByrinth-Message-from-JimEvidence that the Laboratory Workforce Crunch: a Persistent Challenge

If yet another example of laboratory workforce gaps is needed, here it is: Baptist Health, Norton Healthcare, University of Louisville (UofL), and Indiana University Southeast have collaborated to address the laboratory workforce shortage.

Faculty members and laboratory equipment will be coordinated between the entities, and IU Southeast will add a Bachelor of Science in medical laboratory science. Obviously, the goal is to cooperatively create groups of laboratory-ready staff who can help fill existing gaps.

(On the administrative side, your laboratory’s staffing issues can be consolidated with services from ADSRCM and our outsourced, “behind-the-scenes” team of laboratory billing, claims, EDI, workflow, and analytics experts. Please be in touch for more information on how we can help.)

Click here for the Indiana University press release.

Hope you enjoy the rest of the read!

What we’ll cover:

2023 Lab Spend

We know it’s February 2025, but CMS data can take time to compile. In this case, the 2023 data we’re about to describe was compiled and just released a few months ago (December 2024). So, while the data may be a little old calendar-wise, it’s also a little new CMS-wise.

In any case, two-thirds aren’t great news, as reported by the OIG regarding the Medicare clinical laboratory fee schedule (CLFS):

  • Total Medicare Part B spending on clinical diagnostic laboratory tests in 2023 decreased by 5.4% from total laboratory test spending in 2022.
  • Perhaps unsurprisingly, spending on COVID-19 tests decreased significantly in 2023, one of the reasons being the availability of over-the-counter COVID-19 tests.
  • Medicare Part B spending on genetic tests has steadily increased over the last 10 years.

Usually, two out of three is pretty good unless the two are negatives, as is the case here.

It’s just another factor pointing to the reality that as much maximized revenue as possible needs to be captured in 2025. Because if the same type of results happen in OIG’s 2028 report, you’ll know you did as much as you could in 2025 to be an exception to the bad news.

(ADSRCM ensures our laboratory clients’ claims are maximized and that tools are accessible to capture patient balances, which help clients drive the most revenue possible when revenue needs to be driven!)

Click here for the OIG report.

BTW, what were the top Medicare Laboratory Claims in CY 2023?

As a follow-up FYI tidbit to the previous article, here are 2023’s top fifteen laboratory claims according to the OIG:

  • Blood test, comprehensive, chemicals
    (80053): $405.1 million
  • Blood test, lipids
    (80061): $332.3 million
  • Blood test, TSH
    (84443): $316.0 million
  • Genetic test: colorectal cancer
    (81528): $301.0 million
  • Detection, nucleic acid, amplified
    (87798): $292.4 million
  • CBC, automated
    (85025): $282.3 million
  • Vitamin D-3 level
    (82306): $250.9 million
  • Hemoglobin A1C level
    (83036): $176.0 million
  • Genetic test: cancer
    (81455): $145.2 million
  • Drug test(s), 22+ drug classes
    (G0483): $145.1 million
  • Presence of drug, by chemistry
    (80307): $129.1 million
  • COVID-19 test: nucleic acid
    (U0003): $115.0 million
  • Drug test(s), 15-21 drug classes
    (G0482): $110.5 million
  • Genetic test: 55-74 genes, cell-free
    (0242U): $104.8 million
  • COVID-19 test: multiplex amplified probe
    (87637): $103.6 million

Most Healthcare Entities Experienced Cyberattacks Last Year? Yes.

According to a HIPAA Journal Report, 84% of healthcare organizations detected a cyberattack in 2024. Not suspected…detected. Most incidents involved hijacking phishing.

An interesting note is that both cloud-based and on-premises systems had their issues with attacks. Neither deployment method was immune.

Given the prevalence of cyberattacks in healthcare, including laboratories, it's crucial to protect yourself as best as possible. Ensure any vendors with whom you work, either online or digitally, are also protected. The stakes are high, and preparedness is key.

Click here for the HIPAA Journal report.

(Multiple layers of security protect ADSRCM’s systems, and Equinix®, a global leader in cloud-based hosting and security, hosts our servers.)

CTA-RCM-eBook

The Self-Testing Corner: STIs and Prostate Cancer

According to a University of Michigan study, people aged 14 to 24 years prefer to self-test for STIs. Perhaps unsurprisingly, the reasons given were better privacy and less stigma.

As for prostate cancer, a Journal of Urology report based on surveys by Vanderbilt U and again, the U of MI, an at-home urine test proved as accurate as that which is collected on-site at a healthcare facility. Reportedly, it would help avoid MRIs and biopsies.

Self-tests, as noted, may have an obvious impact on laboratories that perform STI and prostate cancer testing for patients.

Click here for the U of MI press release on STIs and here for the report on prostate cancer self-testing.

(Self-testing by patients for anything is another reason to ensure your laboratory’s claims are submitted for maximized revenue. ADSRCM does that for our clients!)

Labfraudatory Article of the Month

In a whistleblowing case, the reportedly third largest laboratory in the US will pay over $700,000 to resolve allegations of billing the government for unnecessary blood testing. The relator (aka “whistleblower”) will receive nearly $113,000.

The allegation explains how the laboratory, from 2012 to 2023, conducted much more expensive blood testing than what medical providers prescribed for those patients. More specifically, CBC tests were typically ordered without WBC (white blood count). However, the laboratory performed those tests with WBC, making them more complex calling for larger reimbursements.

Click here for the Justice Department’s details.

Speaking of Whistleblowers, might there be Good News for Laboratories?

Yes, there might, and yes, there is!

A US District Judge recently dismissed a relator/whistleblower case involving a laboratory, medical necessity, the Anti-Kickback Statute (AKS), and the Eliminating Kickbacks in Recovery Act (EKRA).

One of the parties involved had salespeople and independent contractors who received commissions for their referrals. Ultimately, the court said commissions paid weren’t automatically illegal under AKS because intent wasn’t proven.

There’s a lot to the case, but two interesting takeaways were that laboratories can rely on the ordering providers’ determination that ordered tests were medically necessary and that paying commissions to salespeople and independent contractors in and of itself isn’t necessarily illegal.

Click here to review all of the details as outlined by FindLaw.

Speaking of a Laboratory Sales Staff…

When a laboratory has a sales team, or even just a single salesperson, providing them with a way to self-serve on any number of levels on-demand using an app - without disrupting others at the laboratory - benefits everyone.

(ADSRCM and ADS provide no-cost access to a sales team portal!)

Next Up:

March and new articles and items of interest for laboratories!

Have questions? Simply click on the orange button to learn more about how you can drive maximized revenue and productivity for your laboratory with ADSRCM or about the MedicsPremier platform if in-laboratory automation is preferred!

"We strive to provide our newsletters with news of the current month, not the previous month. Feedback or comments on our newsletters/content are greatly appreciated. Please opine by emailing marc.klar@adsc.com or by calling me at 973-931-7516. We’d love to hear from you."

-- Marc E. Klar, Vice President, Marketing, ADSRCM

Keep up with the latest laboratory billing trends, insights, and industry news

Disclaimer: Articles and content about governmental information, such as CMS, Medicare, and Medicaid, are presented according to our best understanding. Please visit www.cms.gov if clarifications are needed. We are not responsible for typographical errors or changes that may have occurred after this newsletter was produced. We don’t endorse any companies or organizations mentioned in our newsletters; you are encouraged to do research and due diligence on any that might interest you.

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