LabCorp 2006 Annual Report Download - page 16

Q: The last decade has brought enormous
change to the clinical laboratory industry.
We’ve seen substantial consolidation
among independent labs, continued
growth in managed care, and rapid
development of groundbreaking tech-
nologies. What do you see on the horizon
for the laboratory testing industry?
A: Our industry is at an historic inflection point,
and we as an industry must make the right
choices. LabCorp competes vigorously with
its peers, but the interests we share with our
peers are greater than the issues that divide
us. Every member of our industry will continue
to be affected by the competition with other
providers for health care dollars and the desire
of payers, both government and private, to
“get more for less.” Our industry needs to work
together in new and unprecedented ways to
make sure we secure fair reimbursement for
the services we provide today, and for innova-
tive and medically important new tests that
improve patient care and outcomes. We need
payers to understand that reasonable fee
increases for laboratories fuel innovation that
is good for patients, physicians, and our health
care system. We also need to make sure that
regulation of our industry is fair and sensible,
balancing the need to provide assurances of
test reliability to the public against the prospect
of cramping laboratory innovation. Simply put,
we have to more forcefully show the enormous
value we bring in to the health care equation.
Q: What are those key messages?
A: A critical message is how our relatively
modest piece of the health care spending
pie generates enormous value for patients,
for doctors and for payers as well. It is clear that
one of the best ways to attack spiraling costs is
through prevention and early diagnosis. The high-
quality tests we provide are critically important
to both. When we develop innovative screening
tests, identify risk factors, diagnose chronic
diseases at earlier, more treatable stages, and
help select the most appropriate therapy for an
individual, we are maximizing the opportunities
for patients to have better outcomes and driving
down the costs of future treatment. By providing
broad access to new and better laboratory tests,
we can, and will, help doctors help their patients
live healthier lives.
Q: And who is the most important
audience for those messages?
A: Clearly, our elected officials and other health
policymakers need to hear us and understand
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A CONVERSATION WITH DAVE KING
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