9 Ancillary Services That Can Boost Practice Revenue

Leigh Page

Disclosures

August 07, 2014

In This Article

What You Need to Consider First

Before considering bringing testing in-house, Gill advises determining whether your practice can earn enough money to make it worthwhile. Ask your outside reference lab for a utilization report to predict potential volume for each test. Review the costs of supplies, such as reagents, and identify insurance reimbursements for each test. Also, make sure your key insurers will cover the test. Some insurers require samples to be sent to designated reference labs.

Even after launching her program, Alessi continually reviews expenses and revenues to make sure they are on target. "The way you manage your operation can make all the difference between a money-making and a money-losing lab," she said.

If you practice in certain states or have certain payers, your options for lab testing are more limited. Grant said California, Florida, and New York have special requirements, and some payers contract exclusively with national labs and won't pay at all for in-practice services.

"This option works for all practice sizes," Grant added. "Your own medical assistants can be trained to draw labs in most states."

Laboratory Test Scorecard

Start-up costs: $50,000 for one practice.

Potential income: About $400,000 per year.

Pros: Convenient for patients, and provides extra income for the practice.

Cons: You have to buy lab equipment, obtain accreditation, and hire a trained lab tech. Low volume, poor oversight, and failure to meet standards can lead to financial losses.

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