by Kiran Ganda | April 22, 2021 | Blog, What’s New
A recent Becker’s Hospital Review article identified the lab as one of the first areas of consolidation as a result of hospital and health system merger and acquisition (M&A) activity. With such activity expected to be high this year, the article suggests ways labs can prepare for consolidation, including identifying excess or unused lab capacity, identifying tests with non-urgent turnaround times, and ramping up outreach activity to monetize what may otherwise be seen as a high-fixed cost asset ripe for downsizing or sale. But one area the article did not cover is the use of technology to help enable or identify alternatives to technology consolidation. All too often, the health system makes the decision following an M&A to “rip and replace” existing lab infrastructure with one common enterprise EMR, but that can take years to fully implement – leaving the laboratory to struggle with inefficiencies that may risk turnaround and timely patient outcomes.
When best-of-breed laboratory technology is used to address post-M&A needs associated with the coming together of multiple labs, including duplicative or superfluous services, efficiencies across the labs and sites can be maximized. Further, technology may also help newly merged or acquired lab sites avoid downsizing or divestment altogether. Let’s take a detailed look at some examples.
Supporting Multi-Lab Networking
When M&A activity requires that labs from different care sites come together to assess where overlap, strengths, areas for improvement, and capacities lie, among other metrics, technology can help assess these variable performance measures to create collaborative test sharing, routing, and management – whether the labs are to be maintained alongside one another and work together to drive efficiencies – or consolidated to reduce capital costs.
Sunquest Multi-Lab Networking℠ does just that, helping M&A sites build and maintain diagnostic testing networks across previously unrelated laboratory sites for the optimal use of resources. The solution leaves labs more time to focus on the important clinical work, while the technology helps drive the mapping of testing flow. Further, by using technology to connect once disparate labs, benefits of automation become realized, including cleaner order entry, fewer human errors, and faster turnaround times. Send-out costs may also be reduced, as by maintaining connectivity to organizational labs after a merger or acquisition, internal rather than external resources can continue to be leveraged.
About the author
Director of Product Marketing
Having worked exclusively in health technology organizations for more than fifteen years, Kiran is passionate about innovations in patient care.