CLINICAL LABORATORY IMPROVEMENT PROGRAM

CLINICAL LABORATORIES CONTINUE TO EXPERIENCE HARSH ECONOMIC REALITIES

Prostatic Specific Antigen (PSA) Medicare FFS payment cap:

2017 national limitation amount (NLA) = $25.23

2018 payment w/ cap = $22.71

2019 payment w/ cap = $20.44

2020 payment w/ cap = $18.39

Through 2020, Medicare average payment rates are declining 15% – 28% from 2017

Average cost per test = $15.12

Average Medicare reimbursement = $14.67 (2018)

3rd party pays more, Medicaid pays ~ 10% less.

Study of productive hours per billed test comparing 325 hospital clinical laboratories (FYE 2016/2017):

Median = 0.165

10th percentile = 0.101

25th percentile = 0.130

35th percentile = 0.146

Minimum staffing concerns occur at less than 125,000 lab tests per year.

Unless the hospital clinical laboratory adjusts to the new reality, it will go from a revenue center to a cost center.