In an era marked by tight hospital margins and rising antimicrobial resistance, diagnostics are emerging not just as tools for detection, but as strategic assets that can influence clinical outcomes and financial sustainability. During a session sponsored by bioMérieux at Becker’s 13th Annual CEO + CFO Roundtable, Duke University economist David McAdams, PhD, made a compelling case for redefining how health systems perceive and deploy diagnostics.
Here are four key takeaways from the conversation, moderated by Jimm Chengary, who leads value-based care and end-to-end solutions at bioMérieux.
1. Diagnostics create value by delivering actionable information.
Dr. McAdams urged health systems to move beyond viewing laboratory diagnostics as standalone devices or cost centers. Instead, he introduced a simple framework grounded in economics: diagnostics generate value when the information they provide leads to better decisions — and better outcomes.
“Diagnostics in the healthcare infectious disease space have a lot of potential to generate more value,” he said. “And where that value comes from — there’s a really simple way to think about it. Information is only valuable if it’s useful, or to be more precise, if it’s actionable.”
By framing diagnostics as tools that produce decision-relevant information, Dr. McAdams argued for greater alignment between diagnostic use and care delivery processes.
2. Rapid, targeted laboratory diagnostics can save lives and reduce medication overuse.
The conversation focused heavily on antimicrobial resistance (AMR), a global threat with staggering implications. More than 1 million people die annually due to AMR-related complications, and projections suggest this number and associated costs could climb sharply by 2050.
Dr. McAdams used the example of sepsis care to illustrate how fast, accurate diagnostics can drastically alter clinical decisions and outcomes. “A rapid diagnostic could get the right antibiotic and save some people’s lives, while at the same time allowing organizations to conserve the antibiotics for when they’re needed most,” he said.
This dual impact — improving patient care while curbing overuse of antibiotics — positions diagnostics as central to both individual and population-level health strategies.
3. The lab must be empowered, not sidelined.
Mr. Chengary from bioMérieux noted that hospital labs are often physically and organizationally hidden from view, despite being essential to clinical decision-making. Dr. McAdams echoed this concern, emphasizing that labs should not be treated as isolated cost centers.
“A lab that’s optimized and aligned with how you deliver care can unlock enormous value — perhaps more than we’ve seen before. And that starts by building on the expertise you already have with your laboratorians,” he said.
He described labs as “critical pipelines of information” and urged leaders to invest in lab infrastructure, workflow redesign and IT integration.
4. Diagnostics can be a strategic differentiator for health systems.
For C-suite leaders balancing workforce challenges, cost pressures and regulatory uncertainty, laboratory diagnostics may not always feel like a top-line priority. But Dr. McAdams suggested they should be, citing them as a strategic, “sustainable advantage.”
He likened diagnostics to market research in business — as if systems are conducting market research on the microbiome, he said. The more organizations know, the more targeted and efficient their responses can be.
Dr. McAdams also extended an invitation to collaborate on value assessments, particularly in outpatient settings where the business case for diagnostics remains underexplored.
Bottom line for healthcare leaders
Dr. McAdams left the audience with a simple but powerful call to action: “Gathering information that’s actionable generates value … That mindset switch, I think, can enable you to unlock value, which can turn into profits and better patient outcomes.”
For health systems grappling with rising acuity, overburdened staff and a changing reimbursement landscape, diagnostics may offer an under-recognized opportunity — a way to improve care quality while protecting financial performance.
At Becker's 4th Annual CEO + CFO Roundtable, taking place November 2–5 in Chicago, more than 1,500 hospital and health system executives tackle decisions that determine whether organizations thrive or merely survive: protecting margins under cost pressure, choosing where to grow, renegotiating payer relationships, stabilizing the workforce and proving real ROI on technology. This is where leaders work through them together, face-to-face. Apply for complimentary registration now.
