Notes
Slide Show
Outline
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Consulting and Corporate Relationships
  • Atlas Medical; Woodland Hills, CA; consultant
  • Consultants in Laboratory Medicine (CLM); Toledo, OH; consultant
  • Consultants in Medical Information Technology (CIMIT); Bay Harbor, MI; president
  • Pathology Education Consortium (PEC); Bay Harbor, MI; president


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Goals and Objectives
for this Presentation
  • List the top ten current trends in information technology in healthcare as a whole and in the clinical laboratory industry
  • Describe why web-enabled lab applications are a disruptive technology and were only slowly adopted by classic LIS vendors
  • Define the centralized lab model; discuss why it is weakening in parallel with the dis-integration of hospital laboratory operations
  • Describe emergence of the decentralized LIS (D-LIS) in parallel with the centralized LIS (C-LIS) and the lab portal as a D-LIS precursor
  • Discuss information technology & informatics as one of the prime value-driving components for the clinical lab of the new millennium
  • Highlight direct access testing (DAT) and [billable] clinical lab consultations as two new lab product lines spawned by the web
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Top Ten IT Trends in Healthcare,
and the Clinical Laboratory Industry
  • Dis-integration of lab processes manifested by weakened central lab model and performance of more tests in decentralized venues
  • Classic LISs emphasize/support internal operations & are less obvious to customers; evolution of new LIS and parallel architecture (D-LIS)
  • Increased commoditization of most lab tests; IT & informatics emerge as the major value-driving & differentiating factors for clinical labs
  • Validation of hospital lab data replicated from the C-LIS database (“source of truth”) to other clinical systems becomes more challenging
  • Web-based lab portal applications dominate order-entry/results reporting, provide new functionality and dominate lab outreach biz
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Top Ten IT Trends in Healthcare, and
the Clinical Laboratory Industry
  • Approximately 50% of testing moves out of central lab; challenge of capturing\integrating remote test results & supervising remote QC
  • Acute care & lab testing blend with both home healthcare and telehealth; this change enhances new testing options and venues
  • Hospitals with CIS’s/CDRs & physician offices with PMSs evolve into two data domains requiring seamless exchange of clinical data
  • Consumers increasingly order complex tests for themselves (DAT) and auto-perform tests with retail kits and home instruments
  • Clinicians faced with increasingly complex tests; lab medicine consultations emerge as new product line for the clinical laboratory
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Defining a Disruptive Technology; Why Lab Portals Fit into This Category
  • Disruptive technologies are simple, convenient innovations that are initially used at low end of markets (e.g., the PC)*
  • Christensen defines two types of technology: sustaining technology and disruptive technology
    • Sustaining technology provided by companies on basis of requests from customers of the company based on common practices
    • Disruptive technologies are usually simpler and cheaper than the sustaining technology but also offer less capability [initially]
    • Disruptive technologies do not fit into the sustaining market provide lower profit margins; usually shunned by well-managed companies
    • A disruptive technology can quickly develop into a competitive threat, dramatically transforming the market


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Why Classic LIS Vendors Have Been Slow
to Adopt Web-Based Architectures
  • LIS vendors have historically had difficulty moving to any new architecture (including web architecture) for following reasons:
    • Installed customer base is conservative and suspicious of innovations that are expensive and require additional training
    • Installed customer base also places premium on the smooth upgrade-ability of current LIS so their systems do not outdate
    • Vendor software developers & companies have large investment in current products & software development tools
    • Integrated vendors now placing most their R&D investments in CIS products & view the lab market as mature
    • Classic LIS products architected on basis of hospital work/information flows which satisfy most hospital-based labs


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Introducing the Lab Portal: The
First ASP/Lab Software Success Story
  • Lab portal software provides connectivity to MD offices & applications such as OE/RR; also information about test ordering such as tube type
  • Utilizes Internet to provide “free” connectivity; individual applications accessed using a browser (thin client); thick client (PC) also possible
  • Strategy originally driven by need for access to MD offices not served by IDN networks; equally good solution for hospitals/legacy systems
  • Lab portals example of traditional LIS functionality (e.g., OE/RR) moving to web; software can run remotely as ASP rather than in-house
  • For labs with outreach programs, lab portal provides opportunity to compete with reference labs in providing sophisticated IT solutions
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How Web-Based Services Will
Change Lab/Pt. Relationship to MD
  • Lab portal OE/RR will allow office practice to operate more
    efficiently; can avoid patient calls to office staff for result-reporting
  • Lab portal software as “wraparound” can also provide single on-ramp to hospital-based lab, radiology, & cardiac diagnostic
  • Integration of OE/RR into office-based physician management systems (PMSs) will promote efficiencies/development of EMR
  • Decentralization of lab testing (POCT; biotechs offering retail
    genomic testing) will present new data integration challenges
  • DAT for consumers/patients will confound their relationship with MDs; patients may bring complex results to MDs for interpretation
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Centralized Lab Model Has Historically Dominated Clinical Lab Operations
  • Centralized lab model has dominated landscape in this era of modern medicine; specimens transported to hospital “lab factories”
  • Lab factories with assembly-line workflow spawned need for high-throughput analyzers & skilled personnel to support the line
  • Lab operations as wholesale business with copious amounts of  raw data reported to customers (MDs) who finish (i.e., interpret) product
  • Lab infrastructure such as blood drawing centers, LISs, and analyzers are expensive, discouraging new entrants into the field
  • Hospital labs & national reference labs enjoyed quasi-monopoly in their market, sustained by high test volume & low unit cost
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Reasons for the Weakening of
the Centralized Lab Model
  • Healthcare, in general, becoming less centralized & remote from hospitals to reduce costs & increase patient convenience
  • Clinicians and nurses demanding faster TAT and greater control over testing process; they are less concerned about cost-per-test
  • IVD manufacturers marketing POCT devices directly to clinical units; emphasizing benefits for their workflow and efficiency
  • New POCT data management and communication standards facilitate order and result integration into LIS/CDR databases
  • Hospital labs will play their trump cards such as cost-per-test, data integration, & quality issues; may not resonate with clinicians


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Dis-integration of Lab Data Repositories
as Testing Migrates to New Venues
  • Consequences of POCT, home testing, & expanded office testing is that hospital-based lab may lose control of lab data & lab franchise
  • Phenomenon has both quality and political implications because lab power & influence associated with role of lab data stewardship
  • Logical conclusion is for lab is to embrace testing decentralization when demanded by customers but also emphasize data re-integration
  • Reasonable business strategy because test performance much more commoditized; lab data integration/management value-adding step
  • Re-integration of lab data important process for clinicians who desire info. management tools; also platform for lab medicine consulting


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Decentralized Testing Venues That Will Comprise Major Components of Lab Market
  • Sophisticated genomic/genetic testing offered by biotech companies to retail market
  • Outpatient testing when rx or procedure dependent on results (e.g., outpatient surgery)
  • Testing in skilled nursing facilities and chronic care facilities; emerging venue for POCT
  • Self-performed home-testing (e.g., glucometers, kit testing such as pregnancy, Hemoccult®, HIV)
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Home Health/Home Testing Matures as Logical Extension of IDN Lab Services
  • Home health, supported by home lab testing, will be next lab
    frontier; logical extension of POCT as care migrates to home
  • Cascade effect to reduce healthcare costs; less sick patients
    migrate from ICUÜgeneral care unitsÜoutpatient unitsÜhome
  • Home care workers will draw blood from their patients and [soon] perform tests in-home using portable analyzers with broad test menu
  • Such instruments will upload data to nurses/MDs for real-time assessment and/or to hospital databases and to PHRs on web
  • Entrepreneurial IDNs will pursue home health as logical extension
    of other health services to shave costs and retain patient business
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Why Genomics and Proteomics Will Spawn
New Testing Opportunities & Challenges
  • Routine genomic & proteomic testing will overwhelm clinicians with complexity; need IT tools & laboratory consultation to manage patients
  • Current LISs cannot acquire & manage deluge of data that will be
    presented to them from both volume & complexity perspectives
  • Biotech companies, holding patents to new tests, may not “kit-ize” testing for hospital labs or will license testing only to selected labs
  • Exquisite consumers sensitivity to consequences of genetic testing; may balk at results integration into hospital databases & favor web-based labs
  • Current testing model may not lend itself to genomics/proteomics; labs
    may need to create lifelong “alerts”/subscription relationship with patients
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Balancing Two Clinical Data Domains: Hospital CDRs and Office PMSs
  • Hospital labs with outreach programs & lab portals for office-based OE/RR getting requests from MDs for PMS integration
  • Lab professionals torn between dual challenge of enhancing and integrating lab data across hospital and MD office PMS/EMRs
  • PMS vendors often view their products as office EMR platforms which can also accommodate lab & retail pharmacy ordering
  • Hospital-based lab in unique position of being able to span gap and serve patients & MDs in both hospital/office setting
  • Integrating hospital & office-based lab testing admirable goal for continuity of longitudinal care & opportunity to capture business
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Building the D-LIS: Steps in Its Evolution from the Lab Portal
  • Lab portals sales will stimulate acceptance of the D-LIS web-based model, starting with OE/RR supporting lab outreach
  • Some lab portals will evolve into broader “clinical support” portals, providing OE/RR for lab, radiology, & cardiac diagnostic testing
  • For consolidated health systems with multiple classic LISs,
    lab portal can be used as OE/RR wrap-around with same look/feel
  • Classic LISs (i.e., C-LISs) will migrate to back-end & specialize in lab internal operations like specimen tracking, triage, and lab QC
  • New functions may be added to D-LISs rather than the C-LISs because often more flexible due to modern web architecture


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Information Technology & Informatics
as Prime Value-Driving Features
  • Because of lab inspections & quality control, assumption made by customers that most routine testing is roughly equivalent
  • Value of lab services then calibrated by information TAT, communication, integration, and storage/archival services
  • Particularly true in service-oriented lab outreach sector
    where hospital labs must compete with national reference labs
  • No accident that reference labs pioneered use of lab portal software to push electronic OE/RR into MD private offices
  • Lab portal software, e-commerce, and direct access testing are also shaping emergence of genomic testing in its early forms




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Pathology Informatics & Rise of Decentralized Testing: A Congenial Match
  • Weakening of centralized lab model has served to weaken centralized LIS model which provided an integrated database
  • Need shift of raison d’etre of central lab from primarily data creation to data creation + data integration & management
  • Hopefully and ideally, the hospital lab will remain as a data hub through which diverse data streams will converge/integrate
  • Pathology informaticians need to develop a global strategy for presenting a coherent rational view of data downstream
  • Biggest challenges will be recruiting sufficient talented personnel & developing revenue source for these data management efforts


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What Is Direct Access Testing; What
Accounts for Sudden Surge of Interest
  • DAT enables consumer to order a menu of high-quality
    lab tests via the web without [obvious] MD intermediary
  • Although concept not new, web-mediated OE/RR has taken this new this lab product-line into homes of all consumers
  • DAT not a new form of alternate healthcare but rather
    a new approach to case-finding/wellness-monitoring
  • DAT only one facet of larger phenomenon of consumer-controlled selection/utilization of healthcare services
  • Surge of media interest prompted by keen interest on part of readers in new web initiatives and connection to healthcare
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Various Rationales for
Consumers’ Use of DAT Services
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Challenges to Clinicians in New
Healthcare & Lab Environment
  • Seeing more patients per hour without allowing quality to suffer while maintaining respect & confidence of patients
  • Laboring under increasing regulatory & payor documentation burden, serving to distract them from time spent with patients
  • Malpractice & insurance crisis, driving MD increasingly out of private practice & increasing their estrangement from system
  • Increasing capital and training costs to enhance the IT capabilities of office practice; physicians often cyberphobic
  • Patients surfing the web and increasingly IT savvy; higher expectations about office information-access capabilities


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Lab Medicine Consulting Will Emerge as
New Product Line When Pigs Fly
  • Tradition in clinical pathology [not surgical pathology] of reporting raw data, providing little interpretation for customers
  • History of automated “lab consults” that report redundant or obvious information to MDs; heavy burden to overcome this bias
  • Physician orders for lab medicine consults must generally be obtained on a priori  basis at the time the test order is placed
  • Value-adding consulting now provides opportunity for additional lab revenue which could be billed under existing CPT codes
  • Sophisticated lab medicine consulting programs should be
    initiated now; prepare for complex genomic/proteomic testing


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Summary & New Challenges for
Lab Professionals with Web-Driven IT
  • Laboratorians & clinical labs are in the information business; the web
    and the Internet are radically changing the way that we do business
  • Information technology and molecular diagnostics are the future of the
    lab-business and the key value-adding services for lab of future
  • Lab portals & web-based LIS architecture are examples of disruptive technology that will ultimately supplant earlier forms of computing
  • Movement away from centralized lab model an example of dis-integration
     of lab testing; necessary to now embrace all decentralized testing
  • D-LIS base on web architecture will evolve in parallel with C-LIS based
    on hospital business practices; will enable new product lines like DAT
  • Information technology will also act as enabler of reimbursable clinical lab consulting; necessary in a era of overworked physicians and complex testing