When a health system sells its ambulatory laboratory operations, it collects a one-time payment and gives up the recurring revenue that testing would have earned for years. Many leaders underestimate how profitable ambulatory testing is, then watch the lost margin weigh on the balance sheet long after closing. Commercial laboratories understand that value, which is why they pursue these operations aggressively.
Some health systems are growing that business line instead of selling. Northwell Health decided against a sale and over a decade grew associated lab revenue from $46 million to $236 million. Tucson Medical Center rebuilt the lab it once sold and reached profitability within a year. Bryan Health reclaimed outsourced lab testing, launched outreach and lifted overall testing volume 53%.
This whitepaper breaks down the lab’s true financial value.
What you’ll learn:
- Why the clinical laboratory is a revenue generator, not a cost center
- How to determine the true contribution of ambulatory testing to margin
- The financial and patient care benefits of retaining control of laboratory operations
- Real-world results from health systems that expanded ambulatory testing