Notes
Slide Show
Outline
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In the Beginning …………….


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Growth Strategy begins
  • 1987   Thomas O. Tiffany, PhD, DABCC hired as CEO
  •            of PAML; Revenues at that time = $5 M


  • 1989 NetLab is deployed to PAML clients
  • - Accessioning & results now available remotely


  •   Dr. Tom Tiffany develops and gains approval of growth through acquisition


  • 1992 PAML net revenues grow to $22 M
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Pathology Associates Medical Laboratories
  • Largest independent lab in the Northwest


  • Serves physicians, clinics, hospitals, long-term
  • care facilities, government and private industry


  • The Northwest’s most comprehensive esoteric testing center, over 98% of all tests ordered are performed in-house


  • The only SAMSHA toxicology lab in the NW


  • Internationally recognized staff of Ph.D & M.D. scientists
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Pathology Associates Medical Laboratories
  • Serves about 95 hospitals throughout the West
  • Employs >1,000 people in NW


  • Performs more than 2.0 M Tests/yr in Spokane


  • Sends out > 1 M bills / year for PAML and Partners


  • Bills > $110 M annually (18 billing services)
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Key Management Paradigms
  • Healthcare is a local issue – not national.
  • A well positioned regional lab system can compete effectively with the national laboratories.
  • Clinical integration of healthcare services
  • will occur.
  • Lab systems that are integrated with other healthcare services will have a competitive advantage over independent outpatient labs.
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Key Management Paradigms
  • Inpatient and outpatient lab testing can be combined effectively, with improved quality & service to physicians.
  • Physicians prefer combined inpatient & outpatient clinical information when available.
  • Clinical technology is rapidly changing (cytogenetics and genomics). Large laboratory systems will be well positioned  to leverage the new technologies.
  • Market share matters!
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#1 in Hospital Reference Testing  - Northwest!
  • PARTNERSHIPS: PACLAB-WESTERN WASHINGTON, TVL-BOISE,TCL-TRI CITIES
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LOCAL SERVICES - REGIONAL COVERAGE
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Regional Ventures

  • Three Palousse Hospitals
  • - 1st hospital venture


  • Yakima, WA


  • PacLab Network Laboratories, Seattle WA


  • Tri Cities Laboratory,
  •       Tri-Cities, WA



  • Alpha Medical Laboratories, Coeur d'Alene, ID


  • Treasure Valley Laboratory; Boise, ID; Southern Idaho Regional Lab (SIRL)


  • BioLabs, Salt Lake City, UT


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The year was 1994 ….
  • The World Series was canceled due to a players strike.


  • Super Bowl - Dallas Cowboys beat the Buffalo Bills


  • PAML continues its growth strategy purchasing a small lab in Yakima, WA
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Yakima Testing Flow
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Yakima, WA – 1994
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Yakima, WA – 1994
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"Super Bowl:"
  • Super Bowl:
  •            San Francisco beat San Diego (49-26)
  • O.J. Simpson is acquitted


  • Forrest Gump wins Academy Awards for  Best Picture, Best Director and Best Actor


  • PAML purchases labs in 2 cities
  •                - Olympia Medical Laboratory (OML)
  •                - Columbia Biomedical Medical Laboratory (CBML)



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PACLAB History / Formation
  • Three major Healthcare organizations finalize plans to form a regional outreach program in western Washington


  • Of key importance was to keep $$$ and jobs within PACLAB hospitals , and control high quality testing standards.


  • PACLAB LLC formed November 1, 1996.
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PACLAB Vision
  • “ …to help create local laboratory outreach programs by providing comprehensive laboratory services with the highest quality of testing and customer service standards.  PACLAB fosters relationships between local hospitals & clinics and their community physicians, allowing local decision-making with the same resources available to reference labs.”
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PACLAB Members
  • Providence Everett Medical Center
    • Colby Campus
    • Pacific Campus
    • Mill Creek Campus

  • Providence Health System
    • Providence Centralia
    • St. Peter’s Hospital


  • Overlake Hospital & Medical Center


  • Franciscan Health System
      • St. Joseph’s Hospital
      • St. Francis Hospital
      • St. Clare’s Hospital

  • Evergreen Healthcare


  • Pathology Associates Medical Laboratories (PAML)
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PACLAB Legal Structure
  • ‘Limited Liability Company’ chosen as the legal form.


  • PACLAB LLC acts as agent for members in contracting laboratory services.


  • Manager (PAML) provides Billing, Marketing, Finance, Information Services and Management Support under contract.


  • Manager (PAML) provides Esoteric Testing.


  • Members provide Routine Testing/Infrastructure Services.
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Management Structure
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Market Growth
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A Consistent Record of Revenue Growth
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"Y2K Scare"

  • Y2K Scare
  • Billions of  dollars are spent world-wide preparing computer software for Y2K


  • Entertainment:
  •         Star Wars Episode I opens; grossing $103 M
  •          its first 5 days


  • Quest completes the acquisition of SKBCL


  • PAML forms the next step in partnering …..
  • Tri-Cities  Laboratory LLC is formed


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TRI-CITIES LABORATORY
  • Three area hospitals & Tri-cities Lab (PAML)
      • Kadlec Medical Center
      • Lourdes Medical Center
      • Kennewick Medical Center
  • Combines inpatient and outpatient testing
  • Core Laboratory concept
  • Rapid response laboratories at hospitals
  • Esoteric testing to PAML
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Tri-Cities Laboratory Advantages
  • Inpatient & Outpatient testing STANDARDIZED in the community regardless of where  performed.


  • Single source for laboratory information.
          • L.I.S. - Misys Flexilab System


  • Inpatient / Outpatient Orders and results thru hospitals’ H.I.S.
      • Kadlec Medical Center - McKesson
      • Lourdes Medical Center - Meditech
      • Kennewick Medical Center - McKesson

  • Combined Inpatient and Outpatient access
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Testing Flow
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TCL Management Structure
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Alpha Medical Laboratories
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Alpha Medical Laboratories
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Alpha Medical Laboratories Testing Flow
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The year was 2000
  •   The world survived Y2K!


  •    The closest presidential election in decades
  •        is determined by  ‘pregnant’ and ‘bulging’ chad’s


  •    Subway Series in New York
  •           -  Yankees beat Mets (4-1)


  •   PAML buys Treasure Valley Laboratory in Boise, ID


  •   Southern Idaho Regional Lab (SIRL) is formed
  •       in conjunction with St Alphonsus Regional Med Ctr in a
  •      “CO-TENANCY Model”
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SIRL – Southern Idaho Regional Laboratories
  •  After acquisition, Boise-based testing was
  • diverted to:
  • - St. Alphonsus
  • - PAML


  •  Marketshare:
  • - YR 2000 – 50%
  • - YR 2001 – 45%
  • - YR 2003 – 60%


  • Information System – Mysis Flexilab
  • - Order entry – Hospital based system
  • - Results - Hospital based system


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SIRL – Southern Idaho Regional Laboratories
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The year was 2002 …
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BioLabs - Lessons Learned ???
  •   PAML purchases lab in Salt Lake City


  •   Testing –
    • -  Local testing performed on site
    • -  Reference work sent to PAML


  •   Information Systems
  • -  Order entry Flexilab
  • -  Results reporting Flexilab
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Pathology Associates Medical Laboratories
  • Virtual laboratory...Consolidated operations - separate locations


  • History of partnerships with hospitals - developed into a corporate strategy.


  • Serves as managing partner & esoteric reference lab for joint ventures


  • Integrated Information Systems with Unique Information Technology products


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PAML PARTNERSHIPS
  •   All PAML partnerships are profitable, & offer tangible benefits to PAML & their Hospital partners.


  •   Profit margins range from 10% to 15%.


  •   All partnerships enhance laboratory testing
  •      services in the community.


  •   Future growth will be through new markets,
  •     and/or new partnerships.


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Ventures Fuel PAML Growth
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Benefits to Community Partners
  • Owners control testing, costs and service quality
  • Increased testing volumes result in lower inpatient and outpatient lab testing costs
  • Revenues fund investments in equipment and personnel
  • Combined inpatient / outpatient lab data provides enhanced physician and patient experience
  • An enhanced test menu supports referring specialists
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Factors Contributing to our Success
  • Common Goals / Trust / Executive Level commitment


  • “…we must work together to survive”


  • Collective commitment to legal and  business ethical practices


  • Strong disincentives to dissolve membership


  • Equitable partnership agreements that provide fair distribution of profits


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Factors Contributing to our Success
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Clinicians’ Expectations of the Lab
  •    100% accurate results (error free)


  •    100% reliable service


  •    100% on-time results or services


  •    No added work or disruptions


  •    Effective communication with a live person when needed


  •    Understand what they need, why and when they need it ….


  • From a recent Patient Safety Conference:
  • Matthew B. Weinger, MD
  • Director Anesthesiology, U.C. San Diego
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PAML Enterprise Network
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Eeney …Meeney… Miney… Mo…
  •    13 Different LIS’s


      • -  Meditech
      • -  Cerner
      • -  Triple G
      • -  Misys
      • -  McKesson
      • -  Antrim


      •               and the list goes on….
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The Old Way
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The New Way
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What Are Web Services
  •   Automated resources accessed via the Internet.


  •   Web services are software-powered resources or
  •      functional components whose capabilities can be
  •      accessed at an internet URL.


  •   Standards-based web services use XML to interact
  •      with each other, which allows them to link up on
  •      demand using loose coupling.
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Advantages of Web Services
  •   Interoperability
  •           Platform independent and work outside of private networks.


  •   Usability
  •     Expose the business logic of many different systems over the Web.


  •   Reusability
  •     Component-based and the closest thing possible to zero-coding deployment.


  •   Deployability
  •     Even over firewalls and security is built right it.


  •   Control
  •     You decide who sees what.
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What Isn’t Solved ?
  •    Patient Identification
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The Future of Web Services?
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