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By Melissa Hollo
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September 22, 2025

Every minute, complications during pregnancy and childbirth claim the life of a woman somewhere in the world. Many of these outcomes could be prevented through early identification and intervention of maternal health risks, yet gaps in care persist.

Maternal Anemia: A Silent Crisis

Maternal anemia, affecting up to 1 in 4 pregnant women, remains one of the most under-addressed conditions in prenatal care. It increases the risks of postpartum hemorrhage, blood transfusions, and adverse neonatal outcomes like low birth weight and preterm delivery. Addressing maternal anemia is not just a clinical challenge but also an operational and technological one, as healthcare systems often lack the tools to detect and manage risks early.

Maternal anemia, primarily caused by iron deficiency, is a global issue that impacts both mothers and babies. This condition increases the risk of postpartum complications, emergency blood transfusions, and poor neonatal outcomes. Many cases of anemia go undetected during routine prenatal visits due to outdated screening methods. By the time it’s identified, treatment options are often limited, leading to costly and urgent interventions.

The equity implications are also significant. Maternal anemia disproportionately affects underserved populations, contributing to racial disparities in maternal health outcomes. Early detection is not only a clinical priority but also a vital step towards advancing health equity.

The Case for IV Iron Infusions

Intravenous (IV) iron infusions offer a transformative approach to managing maternal anemia. Unlike oral supplements, which are often slow and poorly tolerated, IV iron delivers rapid improvements in hemoglobin levels. Studies have shown that IV iron can reduce the need for emergency transfusions, improve oxygenation for mothers and babies, and cut down on preterm births and extended hospital stays.

The financial benefits are clear, too. Treating 30% of anemic patients in a practice managing 1,000 pregnancies annually could prevent several transfusions and preterm births, saving $32,000 while generating $47,600 in IV iron revenue—a net gain of nearly $80,000. Proactive IV iron therapy turns these outcomes into strategic advantages for OB/GYN practices.

The Role of Advanced Reporting

Effective maternal care depends on data-driven decision-making. However, many healthcare systems lack integrated reporting tools, leading to fragmented data and missed opportunities for improvement. Advanced reporting platforms provide real-time insights into patient populations, screening performance, and treatment outcomes. These analytics support better care strategies while meeting quality metrics tied to healthcare reimbursement.

Comprehensive reporting is especially critical as practices strive to reduce maternal complications, improve patient satisfaction, and optimize resource allocation. Accurate, actionable data is no longer optional—it’s essential for driving excellence in maternal care.

Introducing hc1 HerCare™

hc1 HerCare revolutionizes maternal risk management through automation and advanced analytics. The platform integrates seamlessly with EHR systems, using proprietary algorithms to identify at-risk patients and prioritize care. Automated alerts and treatment recommendations are delivered directly into clinical workflows, enabling providers to act quickly and effectively.

HerCare also features a robust reporting suite, offering visibility into key metrics like anemia screening rates and patient outcomes. This empowers healthcare leaders to optimize care programs and demonstrate measurable success.

Why Proactive Risk Management Matters

Shifting from reactive to proactive care is a game-changer in maternal health. Early risk detection not only improves patient outcomes but also enhances operational efficiency and financial performance for OB/GYN practices. hc1 HerCare enables this shift by providing the tools needed to identify and address risks before they escalate.

The future of maternal care lies in predictive analytics, seamless automation, and evidence-based protocols. HerCare equips providers with the resources to transform their approach, ensuring every mother and baby receives the exceptional care they deserve.

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Melissa Hollo is a Director of Program Management for hc1. Melissa partners with clients to identify opportunities for operational efficiency, standardization, and quality improvement, while also ensuring that solutions are scalable and tailored to meet unique organizational needs. By integrating advanced analytics with proven process improvement methodologies, she enables hospitals and health systems to deliver measurable results in both patient care and financial performance. Previously, Melissa held progressive leadership positions within large healthcare systems, including University Hospitals in Cleveland, where she consistently applied Lean Six Sigma methodologies to enhance efficiency, reduce costs, and build high-performing teams.

By Michelle Coovert
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July 8, 2025

In today’s dynamic healthcare landscape, clinical laboratories face a pivotal question: should they divest their outreach volume or strategically invest to transform the lab from a cost center into a significant revenue driver? This decision is critical, especially with rising supply expenses, labor shortages, and declining reimbursement rates making profitability challenging. 

A recent webinar hosted by hc1, featuring Michelle Coovert, VP of Laboratory Growth, John Moyer, Senior Product Director, and Susan Dougherty, Client Engagement Executive, delved into the complexities of laboratory outreach programs and offered actionable strategies for growth and profitability.

Navigating the Build vs. Sell Conundrum

The choice between selling outreach volume and investing in laboratory growth is often driven by an organization’s strategic plan and financial position. Selling can provide an immediate infusion of capital and serve as an exit strategy, especially when the market offers a considerable premium for outreach businesses. 

However, as Michelle Coovert noted, “the forward looking impact of maybe selling that business and what you lose in terms of marketing and sales, provider satisfaction, and kind of controlling the results portion of laboratory testing can play an impact, too.” Investing in growth, conversely, allows for lowered overall costs and sustained profitability, turning the laboratory into a revenue-generating asset for the healthcare system.

The hc1 Approach: People, Process, and Technology

hc1 advocates for a multi-pronged approach to laboratory growth, integrating people, process, and technology to inform strategic decisions. Program management, by definition, involves coordinating, monitoring, and controlling the various projects that constitute a successful laboratory outreach strategy. Key critical success factors include market assessment, sales management, connectivity, and technology. 

Susan Dougherty emphasized this, stating, “you need to be successful in all of those areas if you’re going to be able to meet whatever the organizational goals are related to the program.” This holistic view ensures that all facets of the outreach program are aligned and optimized for success, from identifying market opportunities to developing a strategic plan and executing it effectively.

Data-Driven Decisions and Advanced Technology

Capturing expected volume, especially from affiliated physicians who may not be sending all their lab work in-house, is a significant growth opportunity. This is where technology plays a crucial role. hc1’s ProviderView solution empowers laboratories to identify and target specific providers and locations for business growth. This tool leverages data points such as specialty breakdown, payer mix, diagnosis codes, and CPT codes to ensure targeting the right fit for the lab’s services. 

John Moyer highlighted the importance of actionable data: “We want to make the news and make a difference. And part of that is real-time data.” By providing real-time, data-driven insights, hc1 enables proactive decision-making, allowing sales and growth teams to have intelligent conversations with physician groups and ensure testing aligns with business profitability and patient interests.

Seamless Operations and Interoperability

Effective growth extends beyond sales to encompass seamless service operations and robust data interoperability. A successful outreach program requires coordination across multiple departments, including billing, compliance, and logistics. hc1’s platform integrates these functions, providing a holistic view of operations and ensuring that all teams are synchronized. This prevents issues like the laboratory being overwhelmed by unexpected volume increases or types of testing, as the lab has a heads-up of what’s coming. 

Furthermore, the platform helps identify “leakage” – when physicians send work elsewhere – allowing health systems to capture more volume. As Moyer explained, the platform acts as a “command center” that breaks down data silos and integrates information from various source systems like EMRs, LIS, and billing systems, offering a complete picture for informed decision-making.

 

For health system and clinical laboratory leaders looking to foster growth and increase revenue, the decision to invest in a laboratory outreach program is a strategic imperative. By adopting a comprehensive approach that integrates people, process, and cutting-edge technology, and by leveraging data to drive actionable insights, organizations can transform their laboratories into strategic assets that not only contribute significantly to the healthcare system’s revenue but also enhance provider and patient satisfaction. 

hc1 offers the expertise, technology, and partnership to navigate these complexities and achieve sustainable growth. To learn more about our suite of Operational Excellence solutions, watch our recent webinar on-demand.

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Michelle Coovert serves as Vice President of hc1’s Growth pillar, where she assumes an executive leadership role focused on the Go To Market strategy for this portfolio of solutions. Michelle has over 10 years of experience executing process improvement projects while applying adult learning skills to develop and lead system training programs for continuous improvement methodologies. She holds a Bachelor’s Degree from Northern Illinois University, a Master of Education from Indiana University, and is a Certified Six Sigma Black Belt (CSSBB).

By Michelle Coovert
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June 17, 2025

As hospitals and health systems face rising costs and declining reimbursements, many healthcare leaders are evaluating whether or not to sell their laboratory outpatient testing to a large reference lab. While a sale can provide short-term financial relief, investing in and growing a lab outreach business can generate significant long-term gains while driving provider and patient satisfaction. Read on for a few of the many direct benefits of a healthy clinical lab outreach program.

Maximize Physician Inreach to Grow Revenue

When health system labs think about outreach growth, often the first thing that comes to mind is capturing testing from non-affiliated providers and becoming a pseudo-reference lab. However, it is estimated that close to 50% of health system employed physician offices refer their lab work to an outside laboratory. 

This alone represents almost $3 billion in lost revenue to health system laboratories per year, according to hc1 data on file. Therefore, focusing just on testing from affiliated providers, or inreach, can provide significant financial benefit to a health system outreach program.

Maintain Control Over Quality and Service

When a health system sells its outpatient testing to a large reference lab, they lose control over testing quality, service levels, and a touchpoint with local providers and care teams. This can potentially result in increased turnaround times and increased patient length of stay, leading to provider dissatisfaction and increased burden on patients.

By retaining and investing in the laboratory, health systems can ensure that they’re providing the highest levels of quality and service to providers and patients. This assurance can also be a strong differentiator to convince providers – whether affiliated or not – to send their testing to the health system.

Build Your Brand to Grow Other Ancillary Services

A well-structured laboratory outreach program can significantly enhance a health system’s brand and reputation within the community. By providing accessible, high-quality laboratory services, the health system creates a tangible connection with local providers and patients. This direct engagement, often through convenient outpatient collection sites, acts as a vital brand-building opportunity. 

This increased trust and brand recognition can then naturally drive business to other ancillary services offered by the health system, such as imaging, physical therapy, or specialty clinics. The lab acts as a crucial entry point, building loyalty and encouraging patients to utilize the full spectrum of services available within the health system, ultimately driving broader business growth.

 

hc1 redefines how labs expand their reach, build provider relationships, and capture new revenue – all within a unified, data-powered platform. To learn more about our Outreach Optimization offering, register for our upcoming webinar.

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Michelle Coovert is the Vice President of Marketing for Laboratory Outreach and Growth at hc1, where she helps labs build sustainable, strategic growth programs in an increasingly complex healthcare landscape. With a background in lab operations and a passion for solving outreach challenges, Michelle brings a practical yet forward-looking approach to enabling lab leaders to scale their impact. Her work focuses on connecting the dots between data, technology, and provider relationships – empowering labs to grow with intention, not luck. She holds a Bachelor’s Degree from Northern Illinois University, a Master of Education from Indiana University, and is a Certified Six Sigma Black Belt (CSSBB).

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May 27, 2025

This year’s inaugural hc1 Healthcare Innovation Summit was nothing short of extraordinary. Held alongside the iconic Indianapolis 500, the event brought together healthcare leaders, innovators, and partners for two days of high-performance insights, networking, and once-in-a-lifetime experiences.

A Unique Blend of Business and Racing

The hc1 Healthcare Innovation Summit was designed to inspire and empower healthcare executives to drive high-performance results in their organizations. By tying the event to the high-speed world of IndyCar racing, we created a unique environment where attendees could explore parallels between high-performance racing and high-performance healthcare.

From engaging keynote sessions to exclusive behind-the-scenes access at the Indianapolis Motor Speedway, the Summit offered a perfect mix of education, networking, and entertainment.

Key Highlights from the Healthcare Innovation Summit

Inspiring Keynotes and Panels:

Industry leaders shared actionable insights on topics like healthcare innovation, operational efficiency, and patient-centered care. These sessions sparked meaningful discussions and left attendees with practical strategies to implement in their organizations.

Exclusive Trackside Experiences:

Attendees enjoyed private access to the Gasoline Alley Suites, overlooking the iconic track. They also had the chance to meet driver Jack Harvey, tour the garage area, and immerse themselves in the high-energy atmosphere of the Indy 500.

Networking and Collaboration:

The Healthcare Innovation Summit fostered valuable connections. Whether during interactive sessions, meals, or trackside activities, attendees had ample opportunities to exchange ideas and build relationships.

High-Performance Healthcare Messaging:

The Summit reinforced hc1’s commitment to empowering healthcare organizations with innovative solutions. Through expert thought leadership, we showcased how high-performance principles can transform healthcare delivery.

Keeping the Momentum Going

The hc1 Healthcare Innovation Summit was more than just an event – it was a catalyst for change. As we reflect on the incredible moments we shared, we’re excited to keep the momentum going.

We’re already planning next year’s Summit, and we can’t wait to build on the success of this year’s inaugural event. Sign up here to stay up-to-date on the 2026 hc1 Healthcare Innovation Summit, and thank you to everyone who made this event an unforgettable experience.

Together, let’s continue driving high-performance results in healthcare!

 

By Kelly Lucas
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May 20, 2025

Differentiating hc1 from global management consulting firms is essential – especially when a healthcare institution has already worked with one of these large firms on a laboratory consulting project and is seeking fresh, tangible value. Here’s a clear comparison that highlights our unique advantages.

1. Healthcare Specialization vs. General Strategy

  • hc1: 100% focused on healthcare operations, especially in clinical lab services, pathology, blood management, and clinical transformation.
  • Large Firms: Known for high-level strategic consulting across industries; healthcare is one vertical among many.
  • ✅ Why it matters: hc1 brings depth over breadth – we speak the same clinical language, understand regulatory pressures, and move faster on implementation by already having the subject matter expertise.

2. Implementation-Driven vs. Strategy-Only

  • hc1: We stay on the ground to execute the strategy—process redesign, change management, technology integration, benchmarking, and more.
  • Large Firms: Primarily focus on strategic frameworks and recommendations, often leaving execution to the client or third-party implementers.
  • ✅ Why it matters: hc1 brings the team, tools, and training needed to deliver change – not just advise it.

3. Clinical and Operational Alignment

  • hc1: Deep expertise in areas like lab operations, blood utilization, Epic Beaker transitions, digital pathology, and clinical efficiency.
  • Large Firms: Tend to operate at the enterprise or financial level, with less emphasis on day-to-day clinical workflows.
  • ✅ Why it matters: hc1 bridges the gap between finance, operations, and frontline clinicians – ensuring sustainable solutions.

4. Faster ROI with Focused Deliverables

  • hc1: Projects are targeted and outcomes-driven, often producing ROI in 3–6 months through lab cost savings, staffing optimization, or improved throughput.
  • Large Firms: Multi-million dollar engagements that may take months just to assess and define strategy, especially in large institutions.
  • ✅ Why it matters: hc1’s speed, flexibility, and clinical precision deliver value faster, with less institutional fatigue.

5. Transparent Collaboration vs. Executive-Focused Approach

  • hc1: Works side-by-side with clinical and operational teams, building internal capabilities and buy-in at every level.
  • Large Firms: Often work primarily with executive leadership, which can create a disconnect between strategy and frontline execution.
  • ✅ Why it matters: hc1 builds organizational alignment and lasting cultural change – not just executive slide decks.

6. Clinical Lab & Pathology Expertise

  • hc1: Recognized leader in lab transformation, digital pathology, PBM, and Epic Beaker transitions – core areas of interest.
  • Large Firms: May engage lab experts for specific projects but lack the long-term lab infrastructure and focus.
  • ✅ Why it matters: hc1 isn’t learning your lab on the job – we’ve optimized dozens like it through laboratory consulting projects.

Bonus: We Complement Management Consulting Firms’ Work

If a large firm already set the strategic direction, hc1 can step in to operationalize and sustain it – making us partners, not replacements.

 

By helping lab leaders overcome complex financial, staffing, and supply chain challenges through comprehensive laboratory consulting services, hc1 enables healthcare organizations to unlock their labs’ full potential. To learn more about our suite of Operational Excellence solutions, watch our recent webinar on-demand.

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Kelly Lucas, MSM, BSMT(ASCP), is responsible for working with laboratory clients to identify opportunities that optimize operations and delivery savings against commitments. She brings over 30 years of experience in clinical laboratory operations with multi-facility healthcare clinicians and administrators to deliver high quality patient care while simultaneously meeting regulatory and business demands. Kelly strives to provide innovative and meaningful information to our clients that drive optimization of operational efficiencies and bring value to the client. She has a proven record of driving consensus among diverse stakeholders, cultivating and maintaining strong relationships. She has developed strategies for core lab optimization, consolidation/centralization, and supply chain improvements.

By Katie Benyo
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May 6, 2025

Clinical laboratories are the bedrock of healthcare, providing essential data that drives up to 70% of medical decisions. Yet, many labs today grapple with significant operational hurdles, often stemming from a lack of access to real-time, actionable data. In a recent hc1 webinar, experts Kelly Lucas, Client Engagement Executive, and Jennifer Maxwell, Executive Director, Client Success, delved into these challenges with me and discussed how health systems and lab leaders can achieve operational excellence by viewing the lab as a strategic asset.

The Data Disconnect in Lab Operations

Despite generating vast amounts of data for patient diagnostics, a significant gap exists in how effectively labs utilize data for their own operational management. A survey cited in the webinar revealed that only 12% of lab professionals have access to data analytics across all of their operations, and a mere 26% of those have access to real-time data. This lack of real-time insight hinders forward-thinking decision-making, impacting everything from process improvement and staffing to cost reduction.

“By not being able to have real time insight into data, it really puts them at a disadvantage when it comes to forward thinking – improving processes, looking at staffing, helping to reduce cost – because everything that they’re looking at is not real-time.”
–Kelly Lucas

Without immediate visibility into performance, labs are often reactive, addressing issues only after they’ve impacted turnaround time, strained resources, or incurred expenses.

Addressing Core Challenges: Workflows, Staffing, and Cost

The primary challenges facing laboratory leaders – inefficient workflows, persistent staffing shortages, and relentless cost pressures – have remained consistent over recent years. Making the best use of existing technical staff is crucial, especially in an environment where labor constraints make it challenging to keep up with varying workloads throughout the day and across different testing areas. Furthermore, controlling costs remains an everyday priority – healthcare and laboratory leaders are faced with the challenge of lowering costs across the board while still driving additional value.

Strategic Asset vs. Ancillary Service

To truly overcome these challenges and drive innovation, labs must transition from being viewed as an ancillary service to being recognized as a strategic asset within the healthcare system. This means bringing the lab to the forefront and highlighting the immense value it delivers in driving patient care and supporting the financial performance of the organization.

“Viewing the lab as a strategic asset really means that labs need to bring themselves from being an ancillary service, or a ‘nice to have,’ to really being at the forefront as an essential service. We are a ‘must have’ and we are helping drive patient care.”
–Kelly Lucas

hc1 approaches lab optimization comprehensively, focusing on both strategy and operations. Our Strategic Advisory team helps executives understand various opportunities and their complex financial implications, while our Operations Management team assists in executing those strategies. This dual focus ensures that large-picture financial goals are supported by efficient day-to-day operations.

Optimizing Supply Chain Management

Along with labor expenses, supply chain costs have become a significant area of focus for healthcare systems, having increased rapidly in recent years. Healthcare expenses are outpacing inflation, and lab expenses specifically are increasing at an even faster rate. Effective supply chain management in the lab is therefore crucial for operational and financial health.

hc1 has a team of experts dedicated to healthcare supply chain management who work to help clients save significantly on lab supply, equipment, and reference testing costs. Our team leverages lab expertise, proprietary benchmarking, skilled negotiation, and strong vendor relationships built on trust, to secure the best possible prices for clients.

The Power of a Comprehensive Platform and Expertise

hc1 offers a comprehensive solution that combines both technology and advisory services to address the multifaceted needs of the laboratory. Across the platform, several key solutions are:

  • hc1 Performance Analytics, which provides real-time visibility into volume, turnaround time, spend, and productivity
  • hc1 Service Advantage, which enables resolution of quality and service issues, along with trending data on performance
  • hc1 Workforce Optimization, which uses AI and machine learning to provide volume projections and staffing recommendations, based on historical volumes and HRIS data
  • hc1 Sendout Management, which provides a single view of all reference testing to analyze cost, volumes, and turnaround time performance

Complementing the technology is our team of experienced laboratorians who act as trusted advisors, helping clients achieve significant results.

“We can’t just focus on the technology component. It takes a combination of all three: people, process, and technology. I think it’s important to note that hc1 is not just an analytics platform, we’re not just technology, and we’re not just a group of consultants coming in to complete a project. We are a comprehensive solution that is able to deliver across all the needs of the laboratory.”
–Jennifer Maxwell

The Journey to Continued Excellence

Operational excellence in the lab is not a destination, but an ongoing journey. Labs that prioritize this journey, leveraging data and embracing change, become more efficient, effective, and better equipped to handle challenges. The future of lab operations will undoubtedly involve increased adoption of artificial intelligence, machine learning, and further innovation. By focusing on operational excellence, health systems and clinical laboratory leaders can not only improve financial performance but also enhance patient outcomes, reinforcing the lab’s critical role as the cornerstone of healthcare.

Through the effective utilization of real-time analytics and automation, labs can optimize quality and service, reduce cost, and increase efficiency – all without increasing staff workload. To learn more about hc1’s suite of Operational Excellence solutions, watch our recent webinar on-demand.

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Katie Benyo has almost twenty years of experience in healthcare and performance improvement. As Vice President of hc1’s Lab Operational Excellence pillar, she assumes an executive leadership role focused on the Go To Market strategy for this portfolio of solutions. Prior to joining hc1 in 2016, Katie was most recently a Senior Performance Improvement Specialist for a multi-institutional healthcare system. She holds a Bachelor’s in Community Health from the University of Illinois, and a Master of Health Administration from Saint Louis University. She is a NAHQ-Certified Professional in Healthcare Quality (CPHQ), an ASQ-Certified Six Sigma Black Belt (CSSBB), a TeamSTEPPS Master Trainer through AHRQ, and holds a Certificate in Laboratory Quality Management Systems from CLSI. A thought leader in her field, Katie has given over 90 podium presentations, webinars, guest lectures, etc. on healthcare performance improvement, and she has published nine articles on related topics.

By Sherri Ozawa
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February 13, 2025

What is Anemia?

Anemia is a condition that develops when your blood produces a lower-than-normal amount of healthy red blood cells. If you have anemia, your body does not get enough oxygen-rich blood, leading to weakness and fatigue.

The Impact of Anemia

Anemia affects one third of the world’s population, disproportionately women and children, even in developed nations. Most of these cases of anemia are caused by iron deficiency, which is widely overlooked but easily corrected.

Anemia and iron deficiency have profound effects on people’s health and wellness. Fatigue, depression, poor mental focus, and impaired performance of daily activities at home and at work are just a few of the symptoms that are often ignored or attributed to other causes.

Anemia in Mothers and Surgical Patients

The impact of anemia on women of childbearing age is even more dramatic. Iron deficient expectant mothers – which may be up to half of pregnant women – have riskier pregnancies, and the babies born to them have lifelong behavioral, neurological, academic, and even social consequences.

Additionally, 40 percent or more of elective surgery patients have anemia, leading to poorer outcomes from many types of surgery.

Improving Anemia Management Care

The good news is that anemia is a problem that can often be corrected if healthcare organizations operationalize systems to detect and treat anemia, especially in preoperative and pregnant patients. This improves clinical outcomes while also offering direct economic advantages, such as increased revenue from IV Iron treatment.

Explore how the unmatched combination of clinical expertise partnered with powerful technology solutions offered by hc1 aids your organization in realizing the very real benefits to implementing an organized anemia management program.

 

Our patented, clinician-built anemia management software, MyBloodHealth®, automates the anemia management process to ensure individualized care is delivered. If you’re interested in learning more, contact us today for a free demonstration.

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Sherri Ozawa, MSN, RN, serves as hc1’s Director, Clinical Operations and Delivery for Comprehensive Patient Blood Management. She is a founding member and past president of the Society for the Advancement of Blood Management (SABM) and has been a leader in bloodless medicine for more than two decades. She has lectured nationally and internationally with a focus on the creation and implementation of sustainable, organized patient blood management programs. She has published numerous, peer-reviewed abstracts, posters, book chapters, and articles in the field and continues to be actively involved in research in her field. She worked extensively with regulatory agencies and other academic organizations such as the Joint Commission to analyze better practices for the delivery and creation of organized patient blood management programs.

By hc1
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January 28, 2025

A clinical laboratory strategy, like that of any industry, must adapt to change. Strategic planning has to consider changes in the workforce, in technology, and in demand. As a leader in clinical laboratory strategy, see the 5 steps hc1 suggests for increasing profitability in your lab.

1. Optimize Lab Performance

The first step in optimizing a hospital’s lab performance begins with understanding the lab’s current position. At hc1, we recommend benchmarking to see the entire picture which will provide insight into financials, operations, and efficiencies. Once the benchmark is conducted and assessed, the next step is to identify resources that should stay the same or change. The result of optimizing lab performance should lead to lower costs, quicker turnaround, new partnerships, or changes in resource management.

2. Leverage Strategic Technology

Technology has provided innovation, efficiency, and structure to hospital labs. When used well, technology can decrease labor costs, and increase delivery time. But what does it mean to use technology well in a hospital lab?

As technology evolves daily, it is critical to assess the needs of today and the future. hc1 has worked with countless labs to assess how technology can facilitate efficient workflows and processes and implement our own cloud-based software solutions. Making strategic decisions about technology in labs can make a difference for overall performance.

3. Streamline Lab Processes

Lab processes are ever-changing. With personnel and partnerships constantly evolving, it is crucial to have standard processes that reflect efficiency and adaptability. There are several questions that one may ask regarding streamlining processes in the lab. What resources will help? What is the critical path to success? Who are the key players?

All these questions can be answered after a benchmark has been conducted and reviewed.

4. Increase Personnel Productivity

When it comes to hospital labs, our hc1 team believes that productivity is essential for understanding lab profitability. Increasing productivity of lab technicians and other personnel can lead to more work executed in a shorter amount of time. Who wouldn’t want that?

However, this is easier said than done. For team members to be more productive, they must be equipped with the right technology, clean data, and clear communication channels.

5. Provide Quality Service

Service is at the heart of hospitals and hospital labs. Patients and practitioners are reliant on lab results being delivered in a timely fashion. It goes without saying that the quality of service can directly impact profitability. To ensure continued growth, it is important to monitor patient and team satisfaction with the service provided.

 

If you’re interested in meeting with one of our lab experts to discuss ways to increase profitability in your lab, contact us today for a free consultation.

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In Collaboration with Becker’s Healthcare.

In hospitals and health systems, patient blood management matters. Blood management affects patient outcomes and impacts healthcare organizations’ bottom lines. There are now opportunities to disrupt the status quo in blood management, with benefits for patients and provider organizations.

At a session sponsored by hc1 at the Becker’s 10th Annual CEO + CFO Roundtable, BG Porter, former CEO of Accumen, facilitated a discussion on breakthrough technologies in healthcare with panelists:

  • Jason Carney, VP/GM, comprehensive Patient Blood Management
  • Gary Catarella, VP, enterprise lab, Atrium Health
  • Michael Harris, MD, founder, MTH Health


Three key takeaways were:

1. Identifying anemia prior to surgery improves health outcomes and equity.

Patient blood management is an often overlooked opportunity to improve health outcomes. The number one reason for hospital transfusions is anemia. Anemia is an independent modifiable risk factor associated with increased morbidity and mortality, longer length of stay, readmissions and extra PT visits for surgical patients. These factors all raise the economic burden of anemia.

Addressing anemia prior to surgery improves outcomes, lowers costs and can improve health equity. “To deliver equitable health care, you need to identify and treat anemia in all patients prior to surgery, giving everyone access to optimal outcomes,” Mr. Porter said.

2. Executive leadership buy-in is key to lasting change.

Anemia is a multidisciplinary issue with a lot of moving pieces for patients and providers. Having a standard workflow is key to identifying patients with anemia prior to surgery; however, changing existing processes can be a challenge, as new blood management programs often disrupt the status quo.

Strong change management skills and leadership are critical to any new program’s success. In one example, Dr. Harris approached change at Englewood Health in New Jersey by gaining the buy-in of both executive leadership and physicians by demonstrating clear cost savings and increased margins along with better outcomes. In addition, the program introduced new revenue opportunities focused on helping patients prior to surgery and enhanced Englewood’s reputation.

Similarly, at Atrium Health, a health system with more than 40 hospitals and 38 laboratory sites, implementing hc1 blood management program offers the opportunity over four years to decrease red cell transfusions by 60,000, decrease costs by $50 million and improve revenues by $14 million.

The project just kicked off this year, but to drive executive physician support, rather than emphasize the cost benefits, Mr. Catarella used data and case studies to explain the value proposition and drive adoption.

“Your doctors want to do the right thing for their patients and they want to be better than their neighbors and ultimately drive growth in their hospitals,” Dr. Harris said. “It’s an extraordinary growth opportunity for your organization to be out in front of patient blood management.”

3. A strong partnership increases program success.

Understanding that a blood management and anemia program could get back much-needed clinician time, Atrium embarked on its patient blood management program at a time of severe workforce shortages. To accelerate the process and build a solid foundation to support success, Atrium needed a strong change management partner, which they found in hc1. “The hc1 team . . . is boots on the ground. They are sitting across the table with you and your leaders and your physicians and nurses, face-to-face, helping you build that programmatic infrastructure,” Mr. Catarella said.

hc1 MyBloodHealth® solution uses a high reliability, purpose-built process and a data-rich analytics platform. MyBloodHealth connects to your EMR and using proprietary algorithms, identifies anemic patients who can be treated before surgery, sends them to a virtual waiting room to triage the their severity of anemia, analyzes the time frame to surgery and determines whether treatment is recommended..

hc1 clients see between a four to six times ROI on their investment, including a $1,250 per DRG savings and a $600 to $700 net margin increase for patients treated for anemia.

Patient blood management leads to better patient outcomes and results in substantial cost savings for healthcare organizations. However, any successful implementation requires strong change management skills and leadership and physician support. hc1 combines people, process, and technology to disrupt health system processes for the better.

 

Learn more about how hc1 can design a Comprehensive Patient Blood Management program to meet the unique needs of your hospital or health system, ensuring a swift and efficient path to cost savings while elevating patient outcomes.

By Brent Bolton
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This article was originally published and written in Laboratory Economics Volume 19, No. 5 May 2024 issue.

Introduction

Most health systems and their labs remain under financial pressure due to rising employee costs and inflation. As a result, they are looking to cut costs anywhere they can, including reference (aka send-out) testing expenses.  hc1 negotiates about 15-20 reference lab agreements per year for health systems and hospitals.

Below is a summary of some strategies for negotiating your lab’s next reference testing contract from hc1’s Brent Bolton, VP/GM, Strategic Partnerships.

What is the average percentage of hospital lab budget spent on reference testing?

Lab department costs average about 4% of the total hospital operating cost budget. And about 30% of the lab budget is spent on lab supplies. Reference testing is around 20% of overall lab sup­plies cost. So, reference testing represents an average of roughly 6% of the hospital lab budget and less than 1% of the average hospital’s total expenses.

Who else besides ARUP, Labcorp, Mayo and Quest should an RFP go to?

Depending on where the hospital lab is located, it may also want to consider regional labs. A few examples include Wisconsin Diagnostic Labs (WDL), TriCore, Sonic Healthcare, BioReference and Cleveland Clinic.

In addition, it’s good to get pricing from some of the secondary/specialty labs that focus on eso­teric testing, toxicology testing and other labs that do third-party testing. Some specialty tests will be lower-cost and have a quicker turnaround time when ordered directly from a secondary lab like NeoGenomics. As a result, it often makes sense to carve out certain specialty tests from the primary reference lab agreement.

What length of term should a new reference testing contract be?

Three years is generally the average reference lab contract duration. Five years is okay if you can get significant discounts. There should never be volume commitments with the reference lab agree­ment; it should be a fee schedule only with fixed pricing. Auto renewals are also acceptable as long as there is pricing protection.

How many tests should be included in an RFP?

All your send-out tests should be included. This might result in an RFP with 1,000+ tests.

Will FDA regulation of LDTs cause hospitals to send out more tests to reference labs?

Under the FDA’s initial proposed regulations, we thought the outcome was going to be cata­strophic for some hospital labs. They would have had to send out all of their LDT testing to one of the national reference labs. With the final FDA ruling, there appears to be a lot more flexibility. It looks like hospitals will be exempt from having to file premarket applications with the FDA for their existing LDTs.

What about new esoteric tests that are introduced after a reference testing contract is signed?

Labs must consistently monitor and manage send-out testing to ensure new expensive testing does not fall through the cracks. For any tests with significant volume or high pricing, request multiple bids to compare with the primary reference lab pricing even after the primary reference lab agree­ment is signed. Many of the reference labs will allow for annual pricing reviews on the testing that was not included in the original RFP, especially if this new testing is increasing volumes and revenues to the reference lab. If the agreement is done well, this new testing can help to get rebates or volume discounts which will minimize the overall cost increase exposure.

What are some tips to help make sure that hospitals don’t overpay for reference testing?

Conducting an RFP with multiple reference labs that are legitimate options will help ensure hospi­tals are not overpaying for reference testing.

One cost that can sneak up on a hospital lab is miscellaneous testing. The physician may choose to send testing to the primary reference lab but specify that it is performed at a specialty lab (com­monly known as a pass through). The primary reference will then mark up that testing and also charge handling fees. It will be reported on the hospital lab’s bill as a miscellaneous test. Hospital labs need to monitor these miscellaneous testing codes, descriptions and fees and see if that testing can be performed at the primary reference lab instead.

Could pricing for reference tests simply be set at a percentage of the Medicare CLFS rates?

Yes, it is possible, but the reference labs will never willingly change to this transparent pricing model on all testing without federal regulatory enforcement. Reference labs commonly set pricing based on several factors including total revenue projections and test volumes; and not necessarily on a test-by-test basis. As a result, the biggest determinant to pricing is the amount of reference lab competition available to each hospital lab client.

What are your thoughts on using benchmarking pricing in the RFP process?

Most benchmark pricing is just averages on top of other averages, and the data is often outdated. It generally does not account for market changes, rebates, or the hidden value adds that a vendor can provide. A health system may feel they are getting a good deal — even when they are not. The only truly accurate benchmark pricing comes from utilizing a third party (e.g., hc1) that sees real time national market data from every reference lab, every GPO, and every size hospital.

Can you provide average pricing data on some commonly referred tests?

Average pricing per test is extremely subjective, as it is based on the performing testing lab and location, but most notably the pricing is based on the per test volumes sent to the reference lab. It is more important to look at the total cost of aggregated reference lab testing costs versus focusing on individual test codes, unless, of course, there are significant pricing outliers. Pricing for testing can range significantly given the variables I’ve mentioned. For example, a chlamydia trachomatis/ neisseria gonorrhoeae (CT/NG) amplified probe can range anywhere from $15-$40.

What kind of savings can hospitals expect when sending out an RFP for reference testing?

Savings are dependent on each situation and each hospital lab’s level of leverage. As I mentioned earlier, true competition is the best driver for aggressive savings (and that’s more than just sending out RFP’s). That said, we generally see savings of 10%+ for contract renewals with an incumbent reference lab and up to 25% if a reference lab vendor change is made (which can be a heavy lift for the hospital as it involves a lot of scarce IT resources).

What makes the IT transition to a new reference lab so difficult?

It’s difficult because health system IT resources are generally constrained, thereby creating a bottleneck. Every individual send-out test has to be built into the LIS, and there could be thou­sands of tests that the health system or hospital sends to the new primary reference lab. Each one of those tests will have a test code, description, reference range for each result, specimen collection information, etc. that needs to be added to ensure test orders and results are entered accurately.

Can’t hospitals simply take advantage of reference testing contracts through their GPO?

Yes. Hospitals can always utilize the GPO pricing tiers that they qualify for, and that will prevent them from overpaying on reference lab testing. But to maximize savings, value adds, and create favorable contract terms, the best way is to create an agreement between the hospital and the refer­ence lab with a fee schedule that is custom tailored for the hospital. As mentioned earlier, the best way to do that is to have a competitive bidding process that looks at each hospital’s unique test mix, volumes, service level requirements, and consolidation/standardization opportunities. The GPO contract will not take all those particulars into account. It’s also worth noting that a refer­ence lab fee schedule is one of the most important agreements that a hospital can negotiate, so it’s always worth the effort to do so.

 

Learn more about how hc1 can work alongside your organization to make sure you receive the best reference test pricing. 

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Brent Bolton, MBA, CPSM is VP, Strategic Partnerships for hc1. Brent is a Supply Chain and Materials Management expert with over 20 years’ experience in the manufacturing and healthcare industry. He is results driven, and has a proven track record of cost reduction, continuous process improvement, and strategic partnerships.​ Brent has an MBA from Point Loma Nazarene University and a BS in Business Management with an emphasis in Supply Chain Management from Arizona State University. Brent is an Adjunct Professor for the College of Business at San Diego State University, teaching graduate courses in management of operations and supply chain systems. He is a Certified Professional in Supply Chain (CPSM), and a Lean Six Sigma Green Belt.

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