Pod Labs and Large Corporate Path Labs

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KeratinPearls

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I read an interesting article the other day. The author, who has experience in practice management, questioned why pathologists who were going after pod labs were not going after large corporate labs (Caris, Quest, etc.) as well.

"What I believe organized pathology appears to miss is that pod labs offer excellent quality, good turnaround time, reasonable fees, and pathologists who are expert in diagnosing urology specimens (pod labs are primarily urology labs). However, blaming pod labs for capturing the revenue stream from anatomic pathology seems far-fetched at best.

If organized pathology is truly concerned about the capture of revenue streams from anatomic pathology services, why aren't they skewering Quest (AmeriPath), LabCorp (Dianon/Urocor/US Labs), CBL Path, GI Pathology, Caris Diagnostics, Oncodiagnostics, Oppenheimer Urologic Reference Laboratory, Bostwick Laboratories, Clarient and a host of others who are truly capturing serious monies in anatomic pathology? The lowly pod labs, primarily UroPath, have maybe a total of 50 urology practices under their control. The labs noted are just some of the commercial laboratories that, on a combined basis, have at least 50 times more urology practices for which they provide anatomic pathology testing services. And how about the gastroenterology practices receiving services from the commercial laboratories noted?

The commercial laboratories I named are enriching the pockets of their nonpathologist and pathologist shareholders by employing hundreds of pathologists at compensation far below the monies earned from payers for the work performed by the hired pathologists. A comment taken directly from the Nov. 27, 2007, issue of the Federal Register perhaps best describes this situation as "reducing pathologists to the status of indentured servants. …" As the pathologists are employees of these companies, "indentured servants" may not be politically correct, but you get the drift. All of these companies must earn a profit for their investors, and the only way that can be done is to pay out less money than is brought in. Yet the commercial laboratories don't feel the wrath of organized pathology. Instead, it is the lowly pod lab group that becomes the whipping boy for organized pathology.

The issue of "abusive" is another matter. Abusive of whom? "Abusive" is not really related to Medicare program billings because Medicare pays claims based on its fee schedule and not on what a given party bills unless billed fees are lower than amounts in the Medicare fee schedule. I suspect "abusive" implies abusive to pathologists. But I fail to understand why it is abusive when the pod labs contract or employ pathologists in their laboratories to provide professional services. Perhaps the majority of their brethren look down upon pod lab pathologists because they are taking work out of local communities and local pathologists' pockets."
He also stated pathologists don't have one unified voice. There are many different pathology societies, with pathologists in different fields having different interests. He suggested this as being a cause of what has happened to pathology.

"Pathology leadership needs to take a hard look at the trend and develop strategies to improve their members' stature within medicine. Lots of self-flogging takes place, but very little gets accomplished. The message from pathologists is not united or well coordinated. This may be attributable to the various factions having different interests within pathology. The relatively small number of pathologists divided over many related but diverse interests may be a clue. There are about 13,000 active pathologists.

For example, look at the number of pathology organizations that divide up the pathology profession. Consider these: the College of American Pathologists, the American Pathology Foundation, the American Society for Clinical Pathology, the American Society for Investigative Pathology, the Association for Molecular Pathology, the Association for Pathology Informatics, and the Society for Toxicologic Pathologists. Getting these disparate pathologists on the same page is a Herculean challenge. And, consider that about 1,000 pathologists are employed by the two largest commercial laboratories in the country, Quest Diagnostics and LabCorp, with many others employed by specialty pathology laboratories such as CBL Path, GI Partners, and so on."
 
Where's that article from?

I agree that the megalabs are a big problem, we've discussed that a lot in the past. The problem is that they have tons of money to spend to try to keep what they have going, and they are not going to give up easily. If pathologists start to bolt or refuse to work for them, they will raise the salaries a bit or something else until enough people bite.
 
Where's that article from?

My bet is some urologist who has a pod lab, based on the overall tone.

To suggest we should "go after" LabCorp or Quest and leave podlabs alone is downright silly... all problems need to be addressed. I also think there is a problem with the lack of unified voice - but don't think having subspecialized interest groups like ASIP or AMP is a problem. I think pathologists overall just haven't been too political / vocal.

The problem can be viewed a lot of different ways. I think one problem is a microcosm of healthcare as a whole, and that's economics. Health care costs are out of control, and means to cut costs are going to be sought on all levels. So companies that can benefit from economies of scale and offer low cost services while screwing over their employees are going to thrive. Some have called for "slashing training spots" to eliminate the surplus of trainees (and ostensibly create a shortage) to help drive up compensation... but at the same time, I think that has to be weighed carefully against the fact that if we created a shortage that drove up prices, it would increase the economic pressures to outsource pathology to overseas, or lower requirements for FMGs to signout slides, or things of that nature.

The second problem is public perception. The public has no idea who we are or what we do, and likely in many cases don't worry or care if their biopsy is being signed out by a local PP pathologist, an underpaid megalab pathologist, or a foreign-trained doc at a pathmill in Bangalore. I think we (CAP, ABP, local path groups) need to wage a public education campaign about who we are and what the importance is of what we do... I can envision commercials now, "You might have cancer... do you know the doctor who is making your diagnosis?" etc... if we can raise awareness, then I imagine the public might be much more concerned about who is doing their bloodwork, signing out their biopsies, and be much more motivated to ensure quality, for those who can afford it.

Unless you can demonstrate a measurable decrease in quality for the cost savings of using a megalab (or the lack of actual cost savings), though, I don't see how you can overcome them. Maybe rising fuel costs will hurt their margins...

Just a few thoughts...
BH
 
Where's that article from?

I agree that the megalabs are a big problem, we've discussed that a lot in the past. The problem is that they have tons of money to spend to try to keep what they have going, and they are not going to give up easily. If pathologists start to bolt or refuse to work for them, they will raise the salaries a bit or something else until enough people bite.

The oversupply of pathologists again shows its ugly face.
 
Pod labs and "contractual joint ventures" are completely different from the megalabs. I think the fear that Quest and the like will take over the world is overblown. What scares me more is that your local GU group can hire a company that for a reasonable fee will provide them with everything they need to set up their own histology lab so that they can process and stain their own prostate cores. The GU guys then get one of the local pathologists (whom the GU group just pulled their cases away from) to read those prostates for some token fee. Meanwhile, the GU group has suddenly decided that a 12-part prostate is better than 6 and that they're going to biopsy anyone with a PSA greater than 1.2. How does this not involve self referral or mark-ups?
 
The guys name who wrote this article is joe plandowski and you can see some of his other letters on the advisory board at g2 reports. He claims to be pathology business consultant. Frankly i find him both obnoxious and defeatist and some of his opinions regarding the 'profit rights' of specialty groups are downright offensive. You should read his most recent letter- the tone suggests we throw in the towel and become indentured servants to these groups. Oh the cheekiness of this chap. He actually implies that pathologists have conned these specialty groups for years by not letting them on to how ripe we are for easy profit pickings. I feel sorry for his clients who take his advice seriously. In fairness he does highlight the problems faced but i maintain that his solutions are not in our best interests and smacks of 'a group specialty interest mole' in our community.
www.g2reports.com- advisory board letters.
 
The guys name who wrote this article is joe plandowski and you can see some of his other letters on the advisory board at g2 reports. He claims to be pathology business consultant. Frankly i find him both obnoxious and defeatist and some of his opinions regarding the 'profit rights' of specialty groups are downright offensive. You should read his most recent letter- the tone suggests we throw in the towel and become indentured servants to these groups. Oh the cheekiness of this chap. He actually implies that pathologists have conned these specialty groups for years by not letting them on to how ripe we are for easy profit pickings. I feel sorry for his clients who take his advice seriously. In fairness he does highlight the problems faced but i maintain that his solutions are not in our best interests and smacks of 'a group specialty interest mole' in our community.
www.g2reports.com- advisory board letters.
very well said
 
In fairness he does highlight the problems faced but i maintain that his solutions are not in our best interests and smacks of 'a group specialty interest mole' in our community.

Will he be first against the multiheaded scope when the revolution comes? 🙂

Seriously, is he a pathologist, an MBA, whats his story?

BH
 
Will he be first against the multiheaded scope when the revolution comes? 🙂

Seriously, is he a pathologist, an MBA, whats his story?

BH

None of the above. He has climbed the ladder (no doubt using the heads of pathology practices as rungs) from technical guy to salesman to 'pathapocalypse man'. Seriously the first paragraph of his biography lauds him for......'increasing the profitability of medical practices, and negotiating the sale or acquisition of laboratories and pathology practices'.
Thats ad verbatim so need I say more.
 
The basic difference is that Bostwick, Oppenheimer, Labcor, etc compete for business. A clinician can send them your biopsies today and send them to me tomorrow.
 
I read an interesting article the other day. The author, who has experience in practice management, questioned why pathologists who were going after pod labs were not going after large corporate labs (Caris, Quest, etc.) as well.


He also stated pathologists don't have one unified voice. There are many different pathology societies, with pathologists in different fields having different interests. He suggested this as being a cause of what has happened to pathology.

The author is an idiot. Pod Labs involved physicians (GIs, Derms, and Uros) billing for and profiting off the services of another physician (pathologists). Moreover, owning their own labs and own pathologists is likely to influence their clinical judgement, i.e. a lesion is much more likely to get biopsied if the biopsier can make more money off the procedure for the biopsy.

The corporate labs might be a bit of a threat to the groups of community pathologists or outreach services of university based pathologists, but they aren't unethical like pod labs, and they offer a valid service.

You would never see a group of urologists or gastroenterologists agreeing to scenarios that pathologists agree to. They are far more savvy. They would never accept a scenario where a group of family practice docs hired them and paid them a salary equal to 25% of what they would get paid if they were doing the billing themselves and instead let the family practice docs do their billing for them.

The difference is that urologists and gastos tend to be type A AMG males and pathology is full of non-type A males, females and FMGs. Females in pathology are often married to type A male physician docs who will be the primary bread winners and they will take any job that has easy hours with no call (pod labs and mills). FMGs understandably tend to want to live in the major urban centers where others from the culture live, leaving them rip to be exploited. Non-type A males love the idea of a job where they don't have to worry about the business aspects and don't have to worry about call or tumor boards or autopsies. They are the ones that take the pod lab jobs.
 
The author is an idiot. Pod Labs involved physicians (GIs, Derms, and Uros) billing for and profiting off the services of another physician (pathologists). Moreover, owning their own labs and own pathologists is likely to influence their clinical judgement, i.e. a lesion is much more likely to get biopsied if the biopsier can make more money off the procedure for the biopsy.

The corporate labs might be a bit of a threat to the groups of community pathologists or outreach services of university based pathologists, but they aren't unethical like pod labs, and they offer a valid service.

You would never see a group of urologists or gastroenterologists agreeing to scenarios that pathologists agree to. They are far more savvy. They would never accept a scenario where a group of family practice docs hired them and paid them a salary equal to 25% of what they would get paid if they were doing the billing themselves and instead let the family practice docs do their billing for them.

The difference is that urologists and gastos tend to be type A AMG males and pathology is full of non-type A males, females and FMGs. Females in pathology are often married to type A male physician docs who will be the primary bread winners and they will take any job that has easy hours with no call (pod labs and mills). FMGs understandably tend to want to live in the major urban centers where others from the culture live, leaving them rip to be exploited. Non-type A males love the idea of a job where they don't have to worry about the business aspects and don't have to worry about call or tumor boards or autopsies. They are the ones that take the pod lab jobs.

So true... and it sucks it really really sucks. What of the few type A peops in pathology that went into the field out of genuine interest and yet the ambition to succeed and be treated respectfully by our peers? How do they lead the pack? All I hear is.... the compete on quality of service mantra which is beginning to sound like a BJ competition with our clinical peers being both the punters and judges. And we all know no matter how good the *****, she never gets any respect.
 
These issues can be dealt with, if not nationally, then locally, but this requires intelligence, political savvy, and yes, a certain amount of aggression. I recently had dinner with a very successful retired private practice pathologist and asked him, given these challenges, what his advice would be. He said to remember two things, first, you are a physician above all else and you have a duty to your patients; second, get to know your congressman, they will listen to you.

Essentially, what we are dealing with is greed. We do not compete in a truly free market and you will not win business simply because you are the best; our system requires regulation to prevent unethical abuses such as described above. Therefore, in my opinion, members of our profession will need to engage the legal and political machinery to hold the line. It can and is being done, but make no mistake this is a war and if you leave the ivory tower you will have to choose sides (inaction is a choice).

I believe that we need to take control of our destiny. We can start to do this by reducing the number of pathology spots, becoming more relevant to direct patient care, fighting to bring PC billing back in line with TC, and by ensuring that patients and legislators are aware of the true motives of those clinical colleagues who are so obviously consumed by avarice.
 
Quick question and forgive the ignorance but lets assume a cash only (not accepting insurance) specialty business e.g GI/ Derm/ Uro generate biopsies. Will the path group reading them also bill for cash direct from the Pt/Client or from the group. Or will there be some creepy arrangement as in the above posts. Its relatively easy to bill and collect as a clinician or even if providing clinical path services at point of contact (clinic and phlebotomy respectively) with the client. But how will AP's get round this esp. with the rise of HSA's without an uncomfortable stand off as I'm not sure the group will go out of its way to chase the pt down after they've got their results.

P.S Its funny how I think of people paying cash as Clients and those with insurance as Patients.
 
they will take any job that has easy hours with no call (pod labs and mills). Non-type A males love the idea of a job where they don't have to worry about the business aspects and don't have to worry about call or tumor boards or autopsies. They are the ones that take the pod lab jobs.

This will be the majority of future pathology trainees. People going into pathology nowadays want to specialize and do shift work.

No scut... lots of PA's to gross, no autopsies, no call.

Easy afternoons on the golf course or coaching little league.

This will drive the business into a factory model.

Might as well start unions now folks.

Unions by subspecialty.

The union of of gastrointestinal pathologists or UGASTP

The union of cytopatholgists or UCYT (maybe USQUAT)
The union of genitourinary pathologists or UGUPATH.

Unionize now so you can fight for a minimum hourly salary (shift or number of slides slapped), good retirement package, nice vacations and other perks.

Maybe they should just completely change pathology education.

Have a fast track system like in surgery. Do a year of general AP then go directly to the factory of choice in subspecialty of choice.

Decide AP/GU by the end of first year... or AP/DERM.

Why waste tax payers money having residents sitting around a microlab watching techs swab plates.
Get them terminally differentiated in their specialization and off to the correct factory as early as possible in their training.
 
This will be the majority of future pathology trainees. People going into pathology nowadays want to specialize and do shift work.

No scut... lots of PA's to gross, no autopsies, no call.

Easy afternoons on the golf course or coaching little league.

This will drive the business into a factory model.

Might as well start unions now folks.

Unions by subspecialty.

The union of of gastrointestinal pathologists or UGASTP

The union of cytopatholgists or UCYT (maybe USQUAT)
The union of genitourinary pathologists or UGUPATH.

Unionize now so you can fight for a minimum hourly salary (shift or number of slides slapped), good retirement package, nice vacations and other perks.

Maybe they should just completely change pathology education.

Have a fast track system like in surgery. Do a year of general AP year then go directly to the factory of choice in subspecialty of choice.

Decide AP/GU by the end of first year... or AP/DERM.

Why waste tax payers money having residents sitting around a microlab watching techs swab plates.
Get them terminally differentiated in their specialization and off to the correct factory as early as possible in their training.


Good God, what the hell is wrong with you people? Things may not be the brightest but they certainly aren't the worst. There are literally thousands of pathologists making a great living, so why can't you? Out with this premed negativity...geez.

One of the worsts people to whine and complain about the "state of things" is LADOC yet he continuously flaunts his stories of making +500K and working <20h/week while off in some private island smooching with the big wigs. We all know that these are not the best times, but that goes for most specialties across the board.

Flame me all you want but this crap is getting old, quickly. Whine whine whine....baahhh, I'm just sick of it. 👎thumbdown (two thumbs down)🙄
 
Good God, what the hell is wrong with you people? Things may not be the brightest but they certainly aren't the worst. There are literally thousands of pathologists making a great living, so why can't you? Out with this premed negativity...geez.

One of the worsts people to whine and complain about the "state of things" is LADOC yet he continuously flaunts his stories of making +500K and working <20h/week while off in some private island smooching with the big wigs. We all know that these are not the best times, but that goes for most specialties across the board.

Flame me all you want but this crap is getting old, quickly. Whine whine whine....baahhh, I'm just sick of it. 👎thumbdown (two thumbs down)🙄

i'm not particularly fond of nay-sayers and contemporary solons of sadness singing their siren songs, but i will say that i find these rants very insightful and educational. I'm continually educated on this forum about the issues i will face in my professional life - whether i'm reading a sarcastic rant, a personal attack, or honest suggestions about practicing as a pathologist. i'm grateful for these discussions. I have gained a vocabulary that, quite frankly, simply would not have existed if left to the doldrums of basic medical education. so although i can't say who is right or wrong in whatever argument, i CAN say that i've learned how to follow the arguments, i know where they come from and why they are debated. and i know there are a multitude of places i can turn for more answers. as a result, i feel more prepared for the future than a lot of my peers, and i pity anyone who doesn't independently study the issues discussed on this forum. so, by all means, keep bitchin' . . . otherwise i might get blind-sided in the future by the same traps.
 
This will be the majority of future pathology trainees. People going into pathology nowadays want to specialize and do shift work.

No scut... lots of PA's to gross, no autopsies, no call.

Easy afternoons on the golf course or coaching little league.

That is true of every field these days. In the past 10-15 years medical students have become increasingly immature. It is not just my impression, I have talked to people who train residents or admit people to med school or residents who deal with med students. The expectations these days from younger trainees are so far out of whack from the old days. In a lot of ways it's good, of course, people aren't working 120 hours a week and being berated at every step. There are also different demands on people these days. But people are also not learning how to write notes, interact with other physicians, etc, they are learning only how to take tests and get out of doing objectionable tasks. They leave the responsibilities for a lot of important things to others. I talked to someone looking to hire new people into ER, and lots of people coming out of training are basically incompetent because they spent most of their residency trying to leave the hospital as soon as possible and just "getting their work done."

People whine. The first question out of every med student's mouth is "Is this going to be on the test?" If the answer is no, they tune it out. I don't get it. Residents do it too. We interact with some derm residents here and the sense of smugness at times is overwhelming. They spend years working hard, improving their resumes, trying to get into derm, then as soon as they do it seems like their desire to improve goes out the window and the only goal is to get a big house and a low hour private practice. We spend half of signout talking about houses and celebrity pop culture (when we are not talking about how inferior family practice physicians are 😡 ). Yes, I'm an old man, fuddy duddy, whatever. But I also enjoy what I do and I am getting sick of people who don't really take their job seriously or who want to leave all of the "objectionable" tasks to someone else while collecting the glory for themselves. Medicine should be a partnership with patient care and education at its heart, not a rush to divide profits unequally based on willingness to give others the shaft.

I agree with pathorbust that whining is not a productive trait. However, it is emblematic of the society we are in where everything is always someone else's fault. But bear in mind that whining is always far overrepresented on internet forums, particularly anonymous ones. There are plenty of people who do well in path, yes. Many of these are shady individuals, but many are not.
 
That is true of every field these days. In the past 10-15 years medical students have become increasingly immature. It is not just my impression, I have talked to people who train residents or admit people to med school or residents who deal with med students. The expectations these days from younger trainees are so far out of whack from the old days. In a lot of ways it's good, of course, people aren't working 120 hours a week and being berated at every step. There are also different demands on people these days. But people are also not learning how to write notes, interact with other physicians, etc, they are learning only how to take tests and get out of doing objectionable tasks. They leave the responsibilities for a lot of important things to others. I talked to someone looking to hire new people into ER, and lots of people coming out of training are basically incompetent because they spent most of their residency trying to leave the hospital as soon as possible and just "getting their work done."

People whine. The first question out of every med student's mouth is "Is this going to be on the test?" If the answer is no, they tune it out. I don't get it. Residents do it too. We interact with some derm residents here and the sense of smugness at times is overwhelming. They spend years working hard, improving their resumes, trying to get into derm, then as soon as they do it seems like their desire to improve goes out the window and the only goal is to get a big house and a low hour private practice. We spend half of signout talking about houses and celebrity pop culture (when we are not talking about how inferior family practice physicians are 😡 ). Yes, I'm an old man, fuddy duddy, whatever. But I also enjoy what I do and I am getting sick of people who don't really take their job seriously or who want to leave all of the "objectionable" tasks to someone else while collecting the glory for themselves. Medicine should be a partnership with patient care and education at its heart, not a rush to divide profits unequally based on willingness to give others the shaft.

I agree with pathorbust that whining is not a productive trait. However, it is emblematic of the society we are in where everything is always someone else's fault. But bear in mind that whining is always far overrepresented on internet forums, particularly anonymous ones. There are plenty of people who do well in path, yes. Many of these are shady individuals, but many are not.

Whining is in the eye of the beholder. Somebodies whine maybe somebody else's bona fide opinion or conviction.

Sarcasm and pushing an idea to its scary limit is not necessarily whining.

The lifestyle and type of job you want will drive the market you will enter.
 
Medicine has changed, though, you know? Used to be that as a physician you had autonomy. If you wanted to work for someone else, that was fine. But you could also make your own decisions. These days someone else makes your decisions for you, unless you have climbed to that point where you are the one making the decisions (likely, how you got there had very little to do with what kind of doctor you were, interestingly). Such is the way of things. We have to work within the system now. If you want to change the system or carve out your own true niche, you have to work even harder - which is not necessarily a bad thing, of course. But everything is a "corporation" now. Doing something for one penny less is beneficial, even if quality or work environment suffers, so long as the quality doesn't compromise the future bottom line via lawsuit or lost business.

But yes, I agree, the lifestyle and type of job you want will drive the market you will enter. But the lifestyle and type of job that others want will also drive the market you will enter, at least to some extent.

I don't mind sarcasm at all. Half of everything out of my mouth some days is sarcasm, it seems. I don't mind arrogance either, so long as it is not obnoxious arrogance.
 
That is true of every field these days. In the past 10-15 years medical students have become increasingly immature. It is not just my impression, I have talked to people who train residents or admit people to med school or residents who deal with med students. The expectations these days from younger trainees are so far out of whack from the old days. In a lot of ways it's good, of course, people aren't working 120 hours a week and being berated at every step. There are also different demands on people these days. But people are also not learning how to write notes, interact with other physicians, etc, they are learning only how to take tests and get out of doing objectionable tasks. They leave the responsibilities for a lot of important things to others. I talked to someone looking to hire new people into ER, and lots of people coming out of training are basically incompetent because they spent most of their residency trying to leave the hospital as soon as possible and just "getting their work done."

People whine. The first question out of every med student's mouth is "Is this going to be on the test?" If the answer is no, they tune it out. I don't get it. Residents do it too. We interact with some derm residents here and the sense of smugness at times is overwhelming. They spend years working hard, improving their resumes, trying to get into derm, then as soon as they do it seems like their desire to improve goes out the window and the only goal is to get a big house and a low hour private practice. We spend half of signout talking about houses and celebrity pop culture (when we are not talking about how inferior family practice physicians are 😡 ). Yes, I'm an old man, fuddy duddy, whatever. But I also enjoy what I do and I am getting sick of people who don't really take their job seriously or who want to leave all of the "objectionable" tasks to someone else while collecting the glory for themselves. Medicine should be a partnership with patient care and education at its heart, not a rush to divide profits unequally based on willingness to give others the shaft.

I agree with pathorbust that whining is not a productive trait. However, it is emblematic of the society we are in where everything is always someone else's fault. But bear in mind that whining is always far overrepresented on internet forums, particularly anonymous ones. There are plenty of people who do well in path, yes. Many of these are shady individuals, but many are not.

having graduated med school in the early '80's, i'm sort of in an in-between observation point of the generations. i agree with just about everything yaah has said. while many of us moaned about the long hours on our OB or medicine rotations in fam med residency, we just did it 'cause that was the expectation and maybe we just didn't know any better. i do have to say, though, that i don't know many med students who were facing $200K+ debts (even in '82 dollars) back then, so i can understand the desire to get into the big bank specialties. that doesn't excuse sloppy preparation or sloughing off, though.
btw, on the job prospect front, i've gotten two interview offers from widely disparate geographic locations and i've still got fellowship to do and these were somewhat unsolicited-plus i come from a program that a lot of people on this forum would shun. so i'm encouraged re: job prospects.
also, i always had an inferiority complex as an fp until i went to my psychiatrist and he said i didn't have an inferiority complex, i am inferior.
 
i'm not particularly fond of nay-sayers and contemporary solons of sadness singing their siren songs, but i will say that i find these rants very insightful and educational. .........i feel more prepared for the future than a lot of my peers, and i pity anyone who doesn't independently study the issues discussed on this forum. so, by all means, keep bitchin' . . . otherwise i might get blind-sided in the future by the same traps.


You have to be careful on what information is valid. Just because it's on here doesn't mean squat. Half of the stuff posted, is faaaaarrrrr from objective advice that can edify an rational mind.

Whining is usually a form of displaced anger for some other insecurities in life, not a cornerstone with which to build your decisions upon.
 
But the lifestyle and type of job that others want will also drive the market you will enter, at least to some extent.

What others seem to want is "individualism".

Individualized medicine is not an epiphenomenon
It is inextricably linked to the yearnings of this culture.
The theme is prevalent everywhere....

Even the motto of the US army has changed to "an army of ONE"

Individualism + ubersubsepcialization = insurmountable health care costs requiring a cultural shift.

The cost of health care is ASTRONOMICAL in this country.

Our leaders are all pushing for some sort of universal health care.

The market keeps trying to convince us about the importance of our individuality and the necessity for specialized care.

How will we be able to afford this? When the projected 10 million or so boomers with Alzheimers need skilled nursing care for routine daily life will pathologists be reimbursed for skin, prostate, and colon biopsies at the level current trainees are fantasizing about?
 
Whining is usually a form of displaced anger for some other insecurities in life, not a cornerstone with which to build your decisions upon.

Is whining about whining whining as well?🙄
We are all insecure about something right?
Sometimes we are insecure because we hope we chose the right field in medicine. Especially if its a couple of months before we start residency and we are adamant.

This is just a discussion forum. Lots of opinions are presented. Surely intelligent doctors and doctors to be read and scrutinize points made on an anonymous internet site.
 
ASCP has a news release today about pod labs

http://www.ascp.org/HomePageContent/ePolicyNews/ePolicyNewsMay52008.aspx

It's funny, I was just reading about the Stark Law today (boards asks about this law). I was trying to figure out how pod labs got around the language of the Stark law (which implies that you can't self refer and then bill for lab testing or another service, unless it is provided within the same building).
 
As I understand it (and it's a superficial understanding at best), the "same building" rule is probably the key to ending mark-ups for "Pod labs", but also presents a gigantic loophole to be exploited by large groups with the space and financial wherewithal to perform AP services in their offices. I'll refrerence what I said earlier in this thread. There are companies that will set up a complete histology department within a physician group's office. Specimens can be grossed, processed, cut, and stained in a back room of any old GI or GU group's office. All they need then is to find a pathologist willing to read them for peanuts and whammo...instant profit.

This arrangement isn't what's traditionally thought of as a "Pod lab". Pod labs are defined by CMS as offsite from a physician group's office. In-office labs currently would meet the "same building" requirement as an exception under Stark law and thus are not subject to the Medicare anti-markup law. The real key would seem to be eliminating the "same building" exception altogether.
 
Is whining about whining whining as well?🙄
We are all insecure about something right?
Sometimes we are insecure because we hope we chose the right field in medicine. Especially if its a couple of months before we start residency and we are adamant.

This is just a discussion forum. Lots of opinions are presented. Surely intelligent doctors and doctors to be read and scrutinize points made on an anonymous internet site.


:laugh: LOL, you're too much! Sorry I know by quoting you it seems as those comments were targeted at you, but they were not. It is just frustrating when every other post is about the same damn topic:
"will I be able to get a job so that I can earn my hundreds of thousands, or should I do a fellowship"
"will doing 2 fellowships secure my hundreds of thousands?"
"will there be enough jobs so that I can earn my money"

Insecure about Pathology? Oh no, I've been found out! On the contrary I feel lucky to have found this field and pretty much wouldn't do anything else. What I do take issue with is that things are just blown way out of proportion. For example, "building factories" for pathologists to work in. 🙄

Although from reading your previous posts I think we definitely think along the same lines on many issues, I usually have fun taking devil's advocate on these things. Tis' the fun of being on SDN right?
 
You have to be careful on what information is valid. Just because it's on here doesn't mean squat. Half of the stuff posted, is faaaaarrrrr from objective advice that can edify an rational mind.

Whining is usually a form of displaced anger for some other insecurities in life, not a cornerstone with which to build your decisions upon.

haha, i'm just taking ques here mate, not gospel. the elements of truth are here, just not in any reliable sense. so what i meant to say was that as a med student, i simply wouldn't even come across the kind of comments made on here; subsequently, i would never even have heard of a pod lab, or at least not know what one is . . . so hearing about these things on here motivates me to look into such issues from other resources
 
Even the motto of the US army has changed to "an army of ONE"

Nothing against the rest of your points, but the army recently changed from that to "Army Strong"...

So individualism everywhere except the army..
 
Nothing against the rest of your points, but the army recently changed from that to "Army Strong"...

So individualism everywhere except the army..
Thanks man. I had not heard this new motto. Do you really think individualism is everywhere except the army or are you being
sarc asssss tic..😀
 
:laugh: LOL, you're too much! Sorry I know by quoting you it seems as those comments were targeted at you, but they were not. It is just frustrating when every other post is about the same damn topic:
"will I be able to get a job so that I can earn my hundreds of thousands, or should I do a fellowship"
"will doing 2 fellowships secure my hundreds of thousands?"
"will there be enough jobs so that I can earn my money"

Insecure about Pathology? Oh no, I've been found out! On the contrary I feel lucky to have found this field and pretty much wouldn't do anything else. What I do take issue with is that things are just blown way out of proportion. For example, "building factories" for pathologists to work in. 🙄

Although from reading your previous posts I think we definitely think along the same lines on many issues, I usually have fun taking devil's advocate on these things. Tis' the fun of being on SDN right?

It is fun. Pathology is a great field. No one else in medicine answers as many questions in a Gold Standard way for such little money. Did you listen to Fletcher's Maude Abbot Lecture this year. It was pretty inspiring. You can listen to it on the USCAP site. I hope the factory thing does not happen. Lots of new trainees don't really seem to mind though. I guess that's what seems disconcerting.
 
I hope the factory thing does not happen. Lots of new trainees don't really seem to mind though. I guess that's what seems disconcerting.

I don't think it has to. We have the opportunity to change all these things by taking leadership positions in our professional societies. As LADoc states, it's "our sandbox" and we allow them to play in it.

I'll give you one example of how this has played out in Texas. The president of the Texas Medical Association is a Pathologist. Let me say that there have been more than a few positive happenings during his time. Like direct billing by pathologists and elimination of fee splitting with clinicians. TMA is the strongest medical association in the US that even the AMA has taken some of these methods and has started implementing them nationally. While the issue of POD labs has not been specifically addressed I believe we need to carefully plan how we will strategize on this topic so that we make it UN-worthwhile for them to stay in business.

I guess the only way the factory thing will happen is if we let it. We must not ingrain into ourselves that we have no other recourse and just submit. Oh that is exactly what those MBAs want us to do. They are just middlemen, as opposed to our essential, fundamental role.
 
I was reading a bit about pod labs and mega labs, found the series of websites referenced in the beginning of this thread.

This was an interesting breakdown of the issues

Here too

I agree there is bias there, but at the same time tend to agree with a lot of his points - while pod labs in principle are fairly reprehensible (non-pathologist bills for technical component, pays pathologist a fee for reading out biopsies), is it any worse than the mega labs who are turning pathology into Walmart? To my recollection, no one really wants to work for Walmart (except for the executives!) unless they can't find a better job.

One of our previous fellows went to work for one of these groups. He made it sound like a great job. High pay, minimal call, lots of time off. Another one also made it sound like a great job before he started and then was finished with at after less than a year because the working conditions were like the gulag (probably being a bit dramatic!).

But these groups are going to continue to squeeze out small private practice groups because everything is ALWAYS about money. In comparison, pod labs almost sound like an improvement.

The problem: Mega labs have so much money and influence that their business practices are unlikely to be stifled. Why should they? Medicare is going to pay the same amount out, it doesn't really matter who they pay it to. Pathology organizations probably don't care because a lot of their membership works for these mega labs - they'll focus on pod labs because they are small and easy targets. But in reality, aren't the mega labs just glorified pod labs?
 
plandowski-11-9-07.gif


It is interesting that over the years, compensation for the technical component has increased (although this is probably justified increase based on inflation, etc) while the professional component has decreased. Why? Because the professional component is attached to a real live person who can be demonized and guilted. The technical component benefits nameless conglomerates or the centralized lab in a partnership - they have an excuse - reagents cost money, supplies cost money, technologists cost money. But the professional component? They make too much money!
 
This isnt just path, Rads, Gas and others are also being COMMODITIZED.

Commodification (or commoditization) is the transformation of goods and services into a commodity.

In the business world, commodification is a process that transforms the market for a unique, branded product into a market based on undifferentiated price competition.

When Your Market Gets Commoditized

One of the most difficult marketing challenges you can ever face is what to do when your product or service becomes an off the shelf commodity. In this article we're going to illustrate this first with theory and then with an example of what a vendor of email server software might choose to do. In the next commoditization article we'll cover it from the example of a web development consulting firm. In the third and final part we'll go over additional commoditization issues like pricing.

What's a Commodity? What's Commoditization?
The term commodity is used by economists to indicate an "undifferentiated good or service". The classic example of a commodity is something like butter or wheat -- there just isn't much difference between butter or wheat from vendor A to vendor B. The term commoditization indicates what happens when a market moves from the status of a differentiated good to a commodity. For example, when no one knew how to make butter except for one or two farms, butter was not a commodity. And it had a premium price. When everyone knows how to make butter then it becomes a commodity and prices fall. Think about it: Do you really care what brand of butter you buy?
 
plandowski-11-9-07.gif


It is interesting that over the years, compensation for the technical component has increased (although this is probably justified increase based on inflation, etc) while the professional component has decreased. Why? Because the professional component is attached to a real live person who can be demonized and guilted. The technical component benefits nameless conglomerates or the centralized lab in a partnership - they have an excuse - reagents cost money, supplies cost money, technologists cost money. But the professional component? They make too much money!


The true story is even worse because Professional services of Physicians are NOT indexed to inflation, like those for medical devices and drugs.

This WILL lead to an end of the modern practice of medicine as we know it, no question.

LISTEN: WE ARE SCREWED. there is no way around this. Steal with both hands, BOTH HANDS now while the getting is good and save every penny, wisely invest, live frugally and be ready to hit the escape chute in the next 20 years.

The Titanic has set sail and there are *maybe* enough rafts for 10% of us.
 
Well, but modern medicine has been changing anyway - technology dictates that. There are far more available tests and procedures than there were 20 years ago - and people haven't stopped doing the stuff they used to do, they are just adding new stuff to it. If you're a patient with chest pain, you no longer get a chest xray + EKG + physical exam. Now you get chest xray + EKG + cardiac echo + troponins + CKs, then you get discharged and get all the things to stratify your risk, then you get put on 4 drugs whereas you used to be put on one.

As physicians we have to keep up with technology because that's what the marketplace demands. But we also can't just gripe and moan about it and hope it will go away or someone else will do something about it. That's why, as distasteful as it is for many, it is important to embrace things like efficiency and understand the economic aspect as much as we can.

There will always be a place for high quality in health care - the problem is that many people have replaced actual high quality service with superficial traits and characteristics (like flowery reports) that make things seem better than they actually are.

I tend to wonder about what the future is for megalabs. I doubt they will go anywhere, and probably will continue to expand, keep finding ways to compete with each other by offering more fluff for less money, etc. Then they will inevitably merge and a handful of already rich idiots will get more rich. Enterprising individuals will continue to start their own practices before they are either squeezed out by mega labs or simply purchased by them.

But for megalabs to exist they have to have pathologists. I highly doubt any of them are going to have a successful business model where they ship things (or digitize them and have them read) overseas for cheaper. American patients and politicians are unlikely to stand for that as a "final" read (similar to how teleradiology is only truly useful as a preliminary read). So they will have to keep hiring pathologists. Preferably they will hire subspecialty trained pathologists so that they can market that. But will the supply of pathologists continue to be enough to support this? I don't know.
 
FYI I merged the new thread with an older thread on the same topic.


And by the way, this whole pod lab thing is so amazing when you think about it. Laws specifically prevent medical testing or referrals being done for financial incentive. But these things are ALL about financial incentives. Sure, they couch it in improved patient care and consistency, which in a sense is a good point because the pathologist knows all the clinicians well and they can interact. But if the pathologist is getting taken advantage of, it's sleazy. And if they order too many tests, it's sleazy. How is this not illegal? I realize they can get around it, but it's still taking advantage of things for financial incentive!

There is some local group here I heard about where the GI clinicians are spinning off their own lab with all of its specimens so that they can capture the technical component $$$. They will hire pathologists or even contract with an existing group to read their slides, but they of course will keep the TC because they have the lab themselves. How in any fashion can this not be construed as a conflict of interest and a financial incentive?
 
FYI I merged the new thread with an older thread on the same topic.


And by the way, this whole pod lab thing is so amazing when you think about it. Laws specifically prevent medical testing or referrals being done for financial incentive. But these things are ALL about financial incentives. Sure, they couch it in improved patient care and consistency, which in a sense is a good point because the pathologist knows all the clinicians well and they can interact. But if the pathologist is getting taken advantage of, it's sleazy. And if they order too many tests, it's sleazy. How is this not illegal? I realize they can get around it, but it's still taking advantage of things for financial incentive!

There is some local group here I heard about where the GI clinicians are spinning off their own lab with all of its specimens so that they can capture the technical component $$$. They will hire pathologists or even contract with an existing group to read their slides, but they of course will keep the TC because they have the lab themselves. How in any fashion can this not be construed as a conflict of interest and a financial incentive?

Hmmm. Would be interesting to go completely mercenarial as a pathologist and offer to sign out all the GI slides from a single location, lets say Malibu on the beach at a cut rate and allow GI docs from across the country the option to then upsell that to Medicare etc.

Do em at 35-40 bucks a pop, you provide scope, software, type reports yourself and email out.

You have zero billing costs, you right off your Malibu beach house as an expense and you lease a Ferrari as a biz expense....

do the math for 50-100 cases/day, 200 days per year....
 
How low could pathologists be reimbursed for the professional component? Would it be possible to one day see the PC at a measly $10? 😱😱😱
 
How low could pathologists be reimbursed for the professional component? Would it be possible to one day see the PC at a measly $10? 😱😱😱

I wonder that too. In Walmart pathology I am sure someone will be willing to do it for as little as is humanly possible to still be profitable. I doubt the PC will go down that low. I suspect sometime in the future the reimbursement strategy will change from uniform reimbursements for all 88305s to something more heavily weighted on actual specimen complexity (i.e. a GI polyp 88305 is vastly different than an ADH vs DCIS breast core bx 88305). But that will require a lot of study and negotiation and therefore will not happen easily.
 
Pathology services have become a commodity because pathologists have become a commodity by virtue of their abundance. The more I learn and think about this the more I am convinced that the only solution is to cut way back on the number of pathologists. And it's actually a very easy solution to enact. I don't care how, make half the people fail the boards or cut residency slots. Fewer pathologists, greater demand, increased power.
 
Pathology services have become a commodity because pathologists have become a commodity by virtue of their abundance. The more I learn and think about this the more I am convinced that the only solution is to cut way back on the number of pathologists. And it's actually a very easy solution to enact. I don't care how, make half the people fail the boards or cut residency slots. Fewer pathologists, greater demand, increased power.

You don't need to pass boards to practice pathology. So making boards harder won't do a thing.

The only thing that would help would be to dramatically cut residency slots but that will never happen as academic programs are way too dependent on resident labor. In fact, most residency programs are increasing residency slots as they expand their community practice oriented outreach programs.

The people that are smart are optho, uro, ortho and others like that. They intentionally keep the number of professionals small.
 
Does his group actually process the slides? It sounds like they don't. Because if they take the biopsy out, put it in a jar, and send the jar to the pathologist then billing for doing the test should be illegal. You can't bill for work you didn't do.

It is akin to me reading a GI biopsy and then billing for doing the endoscopy. How is this legal?
 
Does his group actually process the slides? It sounds like they don't. Because if they take the biopsy out, put it in a jar, and send the jar to the pathologist then billing for doing the test should be illegal. You can't bill for work you didn't do.

It is akin to me reading a GI biopsy and then billing for doing the endoscopy. How is this legal?

The worst part is this GI path corp is most likely banking that they will close this loophole, but after they have dominated the GI bx biz to the point where they will then be able to bill for both the technical and the professional.
 
At least that would be legitimate though. And if that happens perhaps GI pathologists would/could flee the local Walmart and return to local hospitals where they can provide the same service and actually have the money go to them and the hospital instead of hedge fund X which runs the megalab.
 
This dude has some serious issues with pathologists. methinks he must have been an abused PA or something. Check out his most recent article. Perhaps we should act as he portrays us and form a posse and go hunting.... P.S he is the same chap who wrote the initial article posted on this thread. Check it...... Pathologists don’t order tests and Other Such Fairy Tales By Joseph W. Plandowski Lakewood Consulting Group 10/10/08 I enjoy reading the “annual” letter from the College of American Pathologists (CAP) to Centers for Medicare and Medicaid Services (CMS) regarding changes in regulations for the upcoming year. This year was no different. For that matter, this year’s letter was a hoot. You just have to wonder how an organization such as CAP has the brass to actually turn out such a document. This year’s CAP letter is dated August 29, 2008, the last day for submission of comments to CMS regarding proposed changes in regulations for 2009. These are the issues raised in CAP’s letter to CMS that I am addressing: * Pathologists do not order lab tests – the statement in question is found on page 2 of CAP’s comments to CMS and reads as follows: “The CAP believes that self-referral arrangements can only be controlled by removing the economic self-interest of ordering physicians. However, the CAP wants to ensure that any anti-markup rule is drafted in a manner that recognizes that entities like pathology practices and independent laboratories that do not order lab tests not be hindered by any such rule.” For many years, CAP has beaten the drum that pathologists do not order tests. Nothing could be further from the truth! I am not talking about an occasional test here or there. I’m talking about millions of tests ordered by pathologists every year. How CAP can ignore this fact is akin to politicians, in this active political season, presenting half the case in their favor and then conveniently forgetting the other half of the case that is obviously not in their favor. Let’s consider special stains. Who orders those? Perhaps it’s the tooth fairy. I will offer a contrary view that it is actually pathologists who order those stains. In most cases that is appropriate and good medicine. A newsletter entitled Lab Economics recently carried test volume data derived from CMS files that I found particularly interesting. The data is only from payments made by Medicare to cover services to their beneficiaries. Number of: 2000 2005 CGR Tissue slides diagnosed; (88304/88305/88307) 14,796,583 19,445,174 5.6% Special stains ordered; (88312/88313/88342) 2,784,288 4,804,280 11.5% % of Stains to Slides 18.8% 24.7% na Medicare pays for about one-third of all the laboratory tests performed in this country. That would imply about 14 to 15 million special stains were ordered in 2005. It’s probably safe to state that the number of stains done today is higher than it was in 2005. For the most part, special stains are ordered by a pathologist to assist in diagnosing the particularly difficult cases. For the most part, that is good medicine. Why is CAP hiding from the ordering of special stains when it is blatantly known fact to all in the laboratory industry? Clearly CAP is trying to steer pathologists away from being tarred with a brush of self-referral. CAP deftly spins a web of self-referral to be used against dermatologists, gastroenterologists and urologists but then professes that its members are above the self-referral fray. That is simply not true. CMS is aware of pathologist self-referral. CMS is also aware of pathologists ordering a lot more special stains than they did before. Data from the table indicates that pathologists were ordering about one special stain for every five tissue slides in 2000 and upped that rate to about one special stain for every four tissue slides just five years later. This increase can also be seen in the compound growth rate (CGR) of stains which grew at more than twice the growth rate of tissue slides (11.5% vs. 5.6%). How much longer can CAP continue hiding under a rock on this issue? * Exempt pathologists from anti-markup provisions – the statement in question is found also on page 2 of CAP’s comments to CMS and reads as follows: “In this regard, the CAP urges CMS to except from application of the anti-markup provision single-specialty pathology physician groups and independent laboratories who generally do not order tests and utilize pathology/laboratory CPT codes for at least 75% of their billings.” CAP has been beating their drums for years that CMS should not allow physicians who order reference tests to mark them up before sending them on to Medicare for payment. I support that position and believe it was a noble position for CAP to take with CMS. A not so funny thing however happened to pathologists last year. CMS agreed with CAP and issued a change to the regulations that stopped payment to physicians who were purchasing technical work, marking it up and reselling it to Medicare. The problem that CAP created for its members is that CMS included pathologists in the new rules. To put this in simple terms, previously a pathologist was able to buy technical work from his/her local hospital, perform the professional work and bill Medicare a global fee. That ended with a new rule eliminating the markup pathologists were getting on the technical work they were purchasing and subsequently billing to Medicare at substantially inflated fees relative to the actual fees paid for the technical work. Apparently, CAP is trying to convince CMS that pathologists should be exempt from those non-markup rules. In CAP’s eyes, it is all those bad boys of medicine (dermatologists, gastroenterologists and urologists) who should be prevented from marking up purchased tests. While some might disparage the brain trust at CMS, they are bright enough to see right through CAP’s exemption request. Even if they were not, CAP should take the high road on this issue. Why should pathologists have the right to markup tests they purchase and resell to Medicare while their organization is trying to shut down every other physician from doing the same thing? CAP is trying to exempt pathologists from the very same anti-markup rules that CAP wants applied to all other physicians. This is not a fairy tale. * Overutilization – the word in question is found on page 2 of CAP’s comments to CMS and reads as follows: “CMS has long recognized that when physicians who order diagnostic testing also have an economic interest in billing and collecting for the tests ordered, the result often is program abuse and patient abuse, over utilization and higher costs. Over the years, CMS and Congress have imposed rules and limitations to prohibit physician self-referral for tests.” CAP has claimed overutilization for as long as I can remember. And, it is always the non-pathologist physician who is overutilizing test ordering and gouging the system. Overutilization hits close to home when we consider special staining. We saw it in the table above. There is nowhere to hide from that data. Pathologists are on the hot seat, rightly or wrongly, when it comes to that data because they order the stains. Laying blame for overutilization of special staining solely on pathologists is somewhat unfair because they do not have standards in place. No organization has tackled that problem, including CAP. And why would they? It is the wild-west when special stains are involved. What you get are some pathologists playing defensive medicine to cover every possible base by driving up the number of stains done. You also get flat out abuse by pathologists ordering special stains on each and every tissue specimen that enters the laboratory, whether or not it is needed. Some specialty-pathology companies are also contributing to the problem by offering a large menu of combinations of special stains. An interesting anecdotal comment I can share involves a large gastroenterology practice in the Midwest that owns an office-based pathology laboratory. Pathology services were provided by a large local pathology group that also provided pathology services to one of the country’s largest commercial laboratories. After months of operating the laboratory, the gastroenterologists began receiving complaints from their patients about the size of the bills they were receiving. Upon investigation it became clear that the pathology group was using the same staining protocol at the gastroenterologist-owned laboratory that they were using at the large commercial laboratory. The managing gastroenterology partner forced the pathology group to change their staining protocol at his laboratory from blanket staining all slides to selective staining of slides on an as-needed basis. CMS, if they are not doing so right now, will be looking hard at what is happening in the ordering of special stains and their associated payments. CAP should take the lead in defining rational staining protocols. It will remove the utilization issue from the backs of pathologists. Unfortunately, it also takes away CAP’s argument of overutilization by others. However, CAP will be better served if they take the high road. Unless there are standardized protocols that clearly spell out what stains should be applied and when they should be applied, neither CAP nor CMS can factually claim overutilization or underutilization. Without some standard, how can any rational claim be made that these are occurring? CAP is taking considerable liberties on this issue when they would better serve all parties if they established staining standards. Then perhaps, one could judge whether over- or underutilization are occurring rather than spinning more fairy tales. * Pathologist dedicated to solely a physician organization – the statement in question is found on page 3 of CAP’s comments to CMS and reads as follows: “Accordingly, CAP strongly urges CMS to focus on its first proposal to apply the anti-markup provision to all TC and PC diagnostic tests that are ordered by the billing physician or other supplier unless the physician who performs and supervises the pathology services is dedicated solely to that physician organization.” This is an attempt by CAP to shutdown all in-office anatomic pathology laboratories by forcing them to hire or contract a full-time pathologist to operate the in-office laboratory. It has at least one major downside for local pathologists. That is, if implemented, the large in-office anatomic pathology laboratories operated by specialty physicians will be hiring their own pathologists and tossing out local contracted pathologists who are enjoying premium fees in the existing arrangements. Hired pathologists will cost most of these larger in-office pathology laboratories less than they are currently spending for pathology services. There will be some unhappy pathologists if CAP is able to convince CMS to make the changes CAP has requested. This attempt to force a full-time pathologist upon an in-office anatomic pathology does not appear to be well thought out. Besides hurting local pathologist members of CAP as noted in the paragraph above, it creates an unhealthy situation for the patient. Consider that a hired or a contracted full-time pathologist will take a vacation or attend a CME meeting or may be sick or whatever. What happens with the slides? They will sit in the laboratory awaiting the pathologist’s return impacting turnaround time rather than being diagnosed by another local pathologist. In addition, a single full-time pathologist may not be the best available pathologist for all cases compared to a local pathology group with some members having sub-specialization training. And, some of the part-time positions will be taken by a segment of the pathology work force interested in that arrangement. Part-time pathologists perform an important role in many pathology practices. As with the anti-markup provision bullet point above where CAP fell through the ice for its members, CAP is skating on thin ice and may easily fall through on this issue. At least this time they recognize that a problem may exist. But like the last time around, once the rules are set it is over with for at least a year and all you can hope for is a strong lobbying effort to change the rules in subsequent years. On page 4 of CAP’s comments to CMS, they note “In this regard, the CAP is concerned that by defining a physician who does not share a practice as the dividing line, a pathologist who provides 99% of the pathologist services to a pathology practice and 1% of the pathologist’s services to an outside practice may be subject to the anti-markup provisions in all settings.” This would be an untenable situation for most pathology groups. * Quality issues – the words in question are found on page 7 of CAP’s comments to CMS and reads as follows: “There are real quality issues associated with the provision of anatomic pathology services by non-specialists, and no reason to sacrifice quality to achieve expediency.” This claim by CAP is a little far-fetched for anyone to believe. All the in-office anatomic pathology laboratories I have ever seen are directed by pathologists. If quality is being sacrificed, then it is being sacrificed by a pathologist who is the individual diagnosing the case. Every slide is viewed by a pathologist. If the slide quality is poor, it is a pathologist who rejects it. That individual, the pathologist, is the final arbitrator of quality. If quality suffers due to the pathologist’s ability to diagnose cases that issue should have been addressed by the pathology community that worked with the individual long before he/she joined the in-office laboratory. Claiming “real quality issues” is a smoke screen and is a disservice to pathologists who perform professional services at in-office labs. For the most part, a pathologist is not going to tolerate poor quality. After all, it is their name that goes on the report to the ordering physician. It is a fairy tale for CAP to imply to CMS that quality suffers at in-office laboratory settings. CAP should understand by now that a pathologist, one of their members, is performing on-site services. No one is bypassing the need for the work done by a pathologist. There are many times I thought about a pathologist’s reaction to their own organization, CAP, that ripped pod/condo labs and now in-office laboratories for questionable quality and overutilization while that same pathologist was providing professional services to such laboratories. I got the sense CAP was trying to shame pathologists from offering to do that work. What CAP is missing, and this is no fairy tale, is that the work available at in-office laboratories is work a local pathologist would almost never receive because the pathologist could not compete with big specialty pathology laboratories such as Caris, CBLPath, Bostwick Laboratories and a host of others if that work was referenced out. * Profit – the word in question is found also on page 7 of comments to CMS and reads as follows: “There is no medical reason for performing laboratory tests in the physician’s office that cannot be completed at the time of the office visit. The only reason why a practice seeks to perform such tests is to profit from the tests that the physician orders.” Oh yes, how could CAP forget that claim? It is nonsensical. If pathologists did not profit from doing the same test, I might have some sympathy for that claim. But pathologists do profit from the same tests. It appears to be a matter of allowing a pathologist to profit from testing but woe to any other physician who even thinks about it. In a sense it is a teamster mentality with a mindset of “if it is a truck, only a teamster can be behind the wheel.” Profit has been claimed time and again by CAP. It’s as if profit is a bad thing. If laboratories did not make a profit, they would cease to exist. That goes for laboratories owned by pathologists or specialty physicians. The point that doesn’t escape me is that only a pathologist can diagnose tissue slides. It would seem that it should not matter whether the slides are diagnosed in a hospital setting, in a private pathology laboratory, in a commercial laboratory or in an in-office pathology laboratory. In all these cases, a pathologist is assured of performing the professional work. It is not as if pathologists are losing the ability to capture the work. The difference is some of this work has to be done outside a traditional hospital setting. CAP’s letter to CMS is instructive. It should be read by all pathologists and management within the laboratory industry. It may provide an understanding of CMS’s direction and the thinking going on at CAP which at times appears to function as a labor union rather than an organization for medical professionals. All parties would be further ahead if the focus of attention was the patient and how we can all deliver quality medical care to the patient regardless of the setting.
 
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