Very basic question, acknowledging that even after years of practice, some fundamental business principles relevant to pathology operations still remain opaque to me.
It is said that is is often difficult for businesses to be both profitable and growing. In general, I consider hematopathology CPT codes to generally be above cost for common tests, and I generally assume actual collection is only 70% of CMS reimbursement rates for the relevant CPT codes
My question…Is hematopathology practice even profitable?
I have spoken to some seasoned industry lab providers making general statements that conventional CLIA lab operations for routine clinical testing are generally unfavorable, overall.
If a lab is growing but not profitable (perhaps just break even) due to payro, R&D, commercial sales and marketing, indirect costs, etc), and externally funded by private equity, would it still be reasonable for a lab owner / founder to still derive up to 5% of the company revenue for their salary?
It is said that is is often difficult for businesses to be both profitable and growing. In general, I consider hematopathology CPT codes to generally be above cost for common tests, and I generally assume actual collection is only 70% of CMS reimbursement rates for the relevant CPT codes
My question…Is hematopathology practice even profitable?
I have spoken to some seasoned industry lab providers making general statements that conventional CLIA lab operations for routine clinical testing are generally unfavorable, overall.
If a lab is growing but not profitable (perhaps just break even) due to payro, R&D, commercial sales and marketing, indirect costs, etc), and externally funded by private equity, would it still be reasonable for a lab owner / founder to still derive up to 5% of the company revenue for their salary?
