Difference between revisions of "Physician office laboratory"

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Between 1983 and 1984 physician office testing increased by an estimated 11 percent, while the volume of physician-referred diagnostic tests to third-party labs declined 2 percent<ref name="GallivanPhys">{{cite journal |url=http://www.ncbi.nlm.nih.gov/pubmed/3899902 |journal=Hospitals |title=Physician offices invade clinical laboratory market |author=Gallivan, Mary |volume=59 |issue=20 |date=16 October 1985 |pages=84, 89, 92–4 |pmid=3899902 |accessdate=4 April 2014}}</ref>, likely buoyed by relatively inexpensive in-office laboratory equipment and more efficient drug monitoring capabilities.<ref name="CuminsInOff">{{cite journal |url=http://www.ncbi.nlm.nih.gov/pubmed/10267706 |journal=Computers in Healthcare |title=The In-Office Laboratory: Benefits for You and Your Patients |author=Cumins, L. |volume=5 |issue=9 |year=September 1984 |pages=60–2 |pmid=10267706 |accessdate=4 April 2014}}</ref> The Deficit Reduction Act of 1984 further helped to increase the number of physician office laboratories by eliminating physicians' ability to mark up tests sent out to referral labs. Additional changes to Medicare reimbursement meant the laboratory that performed the tests got paid, while physicians were suddenly limited to a $3 payment per patient visit for collecting and distributing specimens. As physician laboratories were at that point still not regulated, physicians and equipment vendors alike saw an opportunity to expand physician office laboratory functions.<ref name="GallivanPhys" /> By the end of 1985, 10 percent of group practices with one to five physicians and 40 percent of those with six to 25 physicians were operating POLs.<ref name="WilkinsonAre">{{cite journal |url=http://www.ncbi.nlm.nih.gov/pubmed/3557409 |journal=Hospitals |title=Are physician labs a competitive threat? |author=Wilkinson, Richard |volume=61 |issue=8 |date=20 April 1987 |pages=96, 98 |pmid=3557409 |accessdate=4 April 2014}}</ref>
Between 1983 and 1984 physician office testing increased by an estimated 11 percent, while the volume of physician-referred diagnostic tests to third-party labs declined 2 percent<ref name="GallivanPhys">{{cite journal |url=http://www.ncbi.nlm.nih.gov/pubmed/3899902 |journal=Hospitals |title=Physician offices invade clinical laboratory market |author=Gallivan, Mary |volume=59 |issue=20 |date=16 October 1985 |pages=84, 89, 92–4 |pmid=3899902 |accessdate=4 April 2014}}</ref>, likely buoyed by relatively inexpensive in-office laboratory equipment and more efficient drug monitoring capabilities.<ref name="CuminsInOff">{{cite journal |url=http://www.ncbi.nlm.nih.gov/pubmed/10267706 |journal=Computers in Healthcare |title=The In-Office Laboratory: Benefits for You and Your Patients |author=Cumins, L. |volume=5 |issue=9 |year=September 1984 |pages=60–2 |pmid=10267706 |accessdate=4 April 2014}}</ref> The Deficit Reduction Act of 1984 further helped to increase the number of physician office laboratories by eliminating physicians' ability to mark up tests sent out to referral labs. Additional changes to Medicare reimbursement meant the laboratory that performed the tests got paid, while physicians were suddenly limited to a $3 payment per patient visit for collecting and distributing specimens. As physician laboratories were at that point still not regulated, physicians and equipment vendors alike saw an opportunity to expand physician office laboratory functions.<ref name="GallivanPhys" /> By the end of 1985, 10 percent of group practices with one to five physicians and 40 percent of those with six to 25 physicians were operating POLs.<ref name="WilkinsonAre">{{cite journal |url=http://www.ncbi.nlm.nih.gov/pubmed/3557409 |journal=Hospitals |title=Are physician labs a competitive threat? |author=Wilkinson, Richard |volume=61 |issue=8 |date=20 April 1987 |pages=96, 98 |pmid=3557409 |accessdate=4 April 2014}}</ref>


On January 1, 1987, the Health Care Financing Administration ruled physicians must accept assignment for performed in-office Medicare lab testing, significantly cutting physician revenues. This, combined with plans from third-party to reduce POL payments and increased pressure on Congress to regulate POLs like other clinical laboratories, led to suggestions of physicians banding together into limited partnerships to start their own [[reference lab]]s.<ref name="WilkinsonAre" /> That pressure on Congress led to the signing into effect of the [[Clinical Laboratory Improvement Amendments]] (CLIA) on October 31, 1988.<ref name="CLIA88Doc">{{cite web |url=http://www.gpo.gov/fdsys/pkg/STATUTE-102/pdf/STATUTE-102-Pg2903.pdf |format=PDF |title=Public Law 100-578 |work=United States Statutes at Large, Volume 102 |date=1988 |accessdate=24 March 2014}}</ref> Regulations for implementing CLIA continued to be developed afterwards, with the [[United States Department of Health and Human Services|Department of Health and Human Services]] considering thousands of comments to the proposed regulations. The final regulations were published February 28, 1992, set to be effective on September 1 of the same year. The new CLIA regulations put into place regulations concerning test complexity, certification, proficiency testing, patient test management, personnel requirements, quality assurance, and other processes in the clinical laboratory, including physician office laboratories.<ref name="MMERFeb2892">{{cite journal |url=http://www.cdc.gov/mmwr/preview/mmwrhtml/00016177.htm |title=Regulations for Implementing the Clinical Laboratory Improvement Amendments of 1988: A Summary  |journal=Morbidity and Mortality Weekly Report |volume=41 |issue=RR-2 |page=1–17 |year=28 February 1992 |pmid=1538689 |accessdate=24 March 2014}}</ref> Additional controls were placed on POLs that year by the Stark Amendment, which sought to prohibit physician referrals of designated health services for Medicare and Medicaid patients if the physician or an immediate family member had a financial relationship with that entity.<ref name="Roberts1992">{{cite journal |url=http://www.thefreelibrary.com/1992+brings+significant+regulation+for+physician+office+laboratories.-a012224764 |journal=Physician Executive |title=1992 brings significant regulation for physician office laboratories |author=Roberts, Rebecca; Valiant, Carrie |volume=18 |issue=3 |year=May–June 1992 |pages=60 |accessdate=4 April 2014}}</ref>  
On January 1, 1987, the [[Centers for Medicare and Medicaid Services|Health Care Financing Administration]] ruled physicians must accept assignment for performed in-office Medicare lab testing, significantly cutting physician revenues. This, combined with plans from third-party to reduce POL payments and increased pressure on Congress to regulate POLs like other clinical laboratories, led to suggestions of physicians banding together into limited partnerships to start their own [[reference lab]]s.<ref name="WilkinsonAre" /> That pressure on Congress led to the signing into effect of the [[Clinical Laboratory Improvement Amendments]] (CLIA) on October 31, 1988.<ref name="CLIA88Doc">{{cite web |url=http://www.gpo.gov/fdsys/pkg/STATUTE-102/pdf/STATUTE-102-Pg2903.pdf |format=PDF |title=Public Law 100-578 |work=United States Statutes at Large, Volume 102 |date=1988 |accessdate=24 March 2014}}</ref> Regulations for implementing CLIA continued to be developed afterwards, with the [[United States Department of Health and Human Services|Department of Health and Human Services]] considering thousands of comments to the proposed regulations. The final regulations were published February 28, 1992, set to be effective on September 1 of the same year. The new CLIA regulations put into place regulations concerning test complexity, certification, proficiency testing, patient test management, personnel requirements, quality assurance, and other processes in the clinical laboratory, including physician office laboratories.<ref name="MMERFeb2892">{{cite journal |url=http://www.cdc.gov/mmwr/preview/mmwrhtml/00016177.htm |title=Regulations for Implementing the Clinical Laboratory Improvement Amendments of 1988: A Summary  |journal=Morbidity and Mortality Weekly Report |volume=41 |issue=RR-2 |pages=1–17 |year=28 February 1992 |pmid=1538689 |accessdate=24 March 2014}}</ref> Additional controls were placed on POLs that year by the Stark Amendment, which sought to prohibit physician referrals of designated health services for Medicare and Medicaid patients if the physician or an immediate family member had a financial relationship with that entity.<ref name="Roberts1992">{{cite journal |url=http://www.thefreelibrary.com/1992+brings+significant+regulation+for+physician+office+laboratories.-a012224764 |journal=Physician Executive |title=1992 brings significant regulation for physician office laboratories |author=Roberts, Rebecca; Valiant, Carrie |volume=18 |issue=3 |year=May–June 1992 |page=60 |accessdate=4 April 2014}}</ref>
 
By 1993, some physicians running POLs were already protesting CLIA, stating the legislation imposed too many rules, regulations, and fees on physicians who perform any kind of in-office testing.<ref name="MarkleDear">{{cite journal |url=http://business.highbeam.com/62468/article-1G1-13564202/dear-hcfa-dont-handcuff-us-these-lab-regs |journal=Medical Economics |title=Dear HCFA: don't handcuff us with these lab regs |author=Markle, George B. |volume=70 |issue=5 |date=8 March 1993 |page=151 |accessdate=4 April 2014}}</ref><ref name="CarpiAMA">{{cite journal |url=http://trove.nla.gov.au/work/42776413?q=Off+our+backs&c=picture&versionId=55658033 |journal=Medical World News |title=AMA battle cry: get off our backs; in a broadside swipe at federal legislation, angry delegates reject CLIA, databank |author=Carpi, John |volume=34 |issue=7 |date=15 July 1993 |page=28 |accessdate=4 April 2014}}</ref> A mix of public commentary and internal consideration caused the effective date of CLIA for labs to be extended on several occasions afterwards: on December 6, 1994 in the Federal Register (59 FR 62606), May 12, 1997 in the Federal Register (62 FR 25855), October 14, 1998 in the Federal Register (63 FR 55031), and December 29, 2000 in the Federal Register (65 FR 82941).<ref name="68FR3639">{{cite journal |url=http://www.gpo.gov/fdsys/pkg/FR-2003-01-24/html/03-1230.htm |journal=Federal Register |title=Medicare, Medicaid, and CLIA Programs; Laboratory Requirements Relating to Quality Systems and Certain Personnel Qualifications; Final Rule |volume=68 |issue=16 |date=24 January 2003 |pages=3639–3714 |pmid=12545998 |accessdate=24 March 2014}}</ref>
 
<blockquote>"The extensions allowed previously unregulated laboratories time to understand and implement these requirements. The extensions also provided the Department of Health and Human Services (HHS) additional time to issue revised QC requirements, review board certification program requests for approval, and ensure that laboratory directors with a doctoral degree had sufficient time to successfully complete the requirements for board certification."<ref name="68FR3639" /></blockquote>
 
By 2000, some physicians were still espousing the benefits of the POL despite the implementation of CLIA, stating that CLIA fees, proficiency testing fees, inspection fees, and staff time account for only roughly about three to four percent of overall lab costs.<ref name="WalpertHow">{{cite web |url=http://www.acpinternist.org/archives/2000/02/officelab.htm |title=How an office lab can help patients—and your income |author=Walpert, Bryan |work=ACP Internist |publisher=American College of Physicians |date=February 2000 |accessdate=4 April 2014}}</ref>


In December 2013, the [[Centers for Medicare and Medicaid Services]] (CMS) reported nearly half of all [[Clinical Laboratory Improvement Amendments|CLIA]]-certified laboratories in the United States (120,399) were physician office laboratories.<ref name="CMSDec13Count">{{cite web |url=https://www.cms.gov/Regulations-and-Guidance/Legislation/CLIA/downloads/factype.pdf |format=PDF |title=Laboratories by Type of Facility |publisher=Centers for Medicare and Medicaid Services |date=December 2013 |accessdate=3 April 2014}}</ref> However, as of December 2010 POLs only processed about eight percent of all clinical laboratory tests.<ref name="CarlsonPhys">{{cite web |url=http://www.genengnews.com/gen-articles/physician-office-lab-diagnostic-market/3493/ |title=Physician Office Lab Diagnostic Market |work=GEN |author=Carlson, Bruce |publisher=Genetic Engineering & Biotechnology News |date=1 December 2010 |accessdate=3 April 2014}}</ref>
In December 2013, the [[Centers for Medicare and Medicaid Services]] (CMS) reported nearly half of all [[Clinical Laboratory Improvement Amendments|CLIA]]-certified laboratories in the United States (120,399) were physician office laboratories.<ref name="CMSDec13Count">{{cite web |url=https://www.cms.gov/Regulations-and-Guidance/Legislation/CLIA/downloads/factype.pdf |format=PDF |title=Laboratories by Type of Facility |publisher=Centers for Medicare and Medicaid Services |date=December 2013 |accessdate=3 April 2014}}</ref> However, as of December 2010 POLs only processed about eight percent of all clinical laboratory tests.<ref name="CarlsonPhys">{{cite web |url=http://www.genengnews.com/gen-articles/physician-office-lab-diagnostic-market/3493/ |title=Physician Office Lab Diagnostic Market |work=GEN |author=Carlson, Bruce |publisher=Genetic Engineering & Biotechnology News |date=1 December 2010 |accessdate=3 April 2014}}</ref>

Revision as of 19:28, 4 April 2014

A physician office laboratory (POL) is a physician-, partnership-, or group-maintained laboratory that performs diagnostic tests or examines specimens in order to diagnose, prevent, and/or treat a disease or impairment in a patient as part of the physician practice.[1][2] The POL shows up in primary care physician offices as well as the offices of specialists like urologists, hematologists, gynecologists, and endocrinologists. In many countries like the United States, the physician office laboratory is considered a clinical laboratory and is thus regulated by federal, state, and/or local laws affecting such laboratories.[2][3]

In early 2011, researchers estimated the worldwide market for in vitro diagnostic company sales from over 100 companies to POLs was valued at around $2.3 billion U.S.[4]

POLs in the United States

History

Between 1983 and 1984 physician office testing increased by an estimated 11 percent, while the volume of physician-referred diagnostic tests to third-party labs declined 2 percent[5], likely buoyed by relatively inexpensive in-office laboratory equipment and more efficient drug monitoring capabilities.[6] The Deficit Reduction Act of 1984 further helped to increase the number of physician office laboratories by eliminating physicians' ability to mark up tests sent out to referral labs. Additional changes to Medicare reimbursement meant the laboratory that performed the tests got paid, while physicians were suddenly limited to a $3 payment per patient visit for collecting and distributing specimens. As physician laboratories were at that point still not regulated, physicians and equipment vendors alike saw an opportunity to expand physician office laboratory functions.[5] By the end of 1985, 10 percent of group practices with one to five physicians and 40 percent of those with six to 25 physicians were operating POLs.[7]

On January 1, 1987, the Health Care Financing Administration ruled physicians must accept assignment for performed in-office Medicare lab testing, significantly cutting physician revenues. This, combined with plans from third-party to reduce POL payments and increased pressure on Congress to regulate POLs like other clinical laboratories, led to suggestions of physicians banding together into limited partnerships to start their own reference labs.[7] That pressure on Congress led to the signing into effect of the Clinical Laboratory Improvement Amendments (CLIA) on October 31, 1988.[8] Regulations for implementing CLIA continued to be developed afterwards, with the Department of Health and Human Services considering thousands of comments to the proposed regulations. The final regulations were published February 28, 1992, set to be effective on September 1 of the same year. The new CLIA regulations put into place regulations concerning test complexity, certification, proficiency testing, patient test management, personnel requirements, quality assurance, and other processes in the clinical laboratory, including physician office laboratories.[9] Additional controls were placed on POLs that year by the Stark Amendment, which sought to prohibit physician referrals of designated health services for Medicare and Medicaid patients if the physician or an immediate family member had a financial relationship with that entity.[10]

By 1993, some physicians running POLs were already protesting CLIA, stating the legislation imposed too many rules, regulations, and fees on physicians who perform any kind of in-office testing.[11][12] A mix of public commentary and internal consideration caused the effective date of CLIA for labs to be extended on several occasions afterwards: on December 6, 1994 in the Federal Register (59 FR 62606), May 12, 1997 in the Federal Register (62 FR 25855), October 14, 1998 in the Federal Register (63 FR 55031), and December 29, 2000 in the Federal Register (65 FR 82941).[13]

"The extensions allowed previously unregulated laboratories time to understand and implement these requirements. The extensions also provided the Department of Health and Human Services (HHS) additional time to issue revised QC requirements, review board certification program requests for approval, and ensure that laboratory directors with a doctoral degree had sufficient time to successfully complete the requirements for board certification."[13]

By 2000, some physicians were still espousing the benefits of the POL despite the implementation of CLIA, stating that CLIA fees, proficiency testing fees, inspection fees, and staff time account for only roughly about three to four percent of overall lab costs.[14]

In December 2013, the Centers for Medicare and Medicaid Services (CMS) reported nearly half of all CLIA-certified laboratories in the United States (120,399) were physician office laboratories.[15] However, as of December 2010 POLs only processed about eight percent of all clinical laboratory tests.[16]

References

  1. ↑ "Chapter 16 - Laboratory Services" (PDF). Medicare Claims Processing Manual. Centers for Medicare and Medicaid Services. 20 June 2013. http://www.cms.gov/Regulations-and-Guidance/Guidance/Manuals/downloads/clm104c16.pdf. Retrieved 3 April 2014. 
  2. ↑ 2.0 2.1 "Physician Office Laboratory Evaluation Program (POLEP)". Wadsworth Center New York State Department of Health. http://www.wadsworth.org/labcert/polep/. Retrieved 3 April 2014. 
  3. ↑ "Physician Office Laboratories or Clinics - Frequently Asked Questions about Clinical Laboratory Licensing and Registration" (PDF). California Department of Public Health. May 2008. http://www.cdph.ca.gov/programs/lfs/Documents/POL-FAQ.pdf. Retrieved 3 April 2014. 
  4. ↑ "Healthcare Cost Worries Boost Physician Office Lab Market". Thomson Reuters. 10 February 2011. http://www.reuters.com/article/2011/02/10/idUS249575+10-Feb-2011+MW20110210. Retrieved 3 April 2014. 
  5. ↑ 5.0 5.1 Gallivan, Mary (16 October 1985). "Physician offices invade clinical laboratory market". Hospitals 59 (20): 84, 89, 92–4. PMID 3899902. http://www.ncbi.nlm.nih.gov/pubmed/3899902. Retrieved 4 April 2014. 
  6. ↑ Cumins, L. (September 1984). "The In-Office Laboratory: Benefits for You and Your Patients". Computers in Healthcare 5 (9): 60–2. PMID 10267706. http://www.ncbi.nlm.nih.gov/pubmed/10267706. Retrieved 4 April 2014. 
  7. ↑ 7.0 7.1 Wilkinson, Richard (20 April 1987). "Are physician labs a competitive threat?". Hospitals 61 (8): 96, 98. PMID 3557409. http://www.ncbi.nlm.nih.gov/pubmed/3557409. Retrieved 4 April 2014. 
  8. ↑ "Public Law 100-578" (PDF). United States Statutes at Large, Volume 102. 1988. http://www.gpo.gov/fdsys/pkg/STATUTE-102/pdf/STATUTE-102-Pg2903.pdf. Retrieved 24 March 2014. 
  9. ↑ "Regulations for Implementing the Clinical Laboratory Improvement Amendments of 1988: A Summary". Morbidity and Mortality Weekly Report 41 (RR-2): 1–17. 28 February 1992. PMID 1538689. http://www.cdc.gov/mmwr/preview/mmwrhtml/00016177.htm. Retrieved 24 March 2014. 
  10. ↑ Roberts, Rebecca; Valiant, Carrie (May–June 1992). "1992 brings significant regulation for physician office laboratories". Physician Executive 18 (3): 60. http://www.thefreelibrary.com/1992+brings+significant+regulation+for+physician+office+laboratories.-a012224764. Retrieved 4 April 2014. 
  11. ↑ Markle, George B. (8 March 1993). "Dear HCFA: don't handcuff us with these lab regs". Medical Economics 70 (5): 151. http://business.highbeam.com/62468/article-1G1-13564202/dear-hcfa-dont-handcuff-us-these-lab-regs. Retrieved 4 April 2014. 
  12. ↑ Carpi, John (15 July 1993). "AMA battle cry: get off our backs; in a broadside swipe at federal legislation, angry delegates reject CLIA, databank". Medical World News 34 (7): 28. http://trove.nla.gov.au/work/42776413?q=Off+our+backs&c=picture&versionId=55658033. Retrieved 4 April 2014. 
  13. ↑ 13.0 13.1 "Medicare, Medicaid, and CLIA Programs; Laboratory Requirements Relating to Quality Systems and Certain Personnel Qualifications; Final Rule". Federal Register 68 (16): 3639–3714. 24 January 2003. PMID 12545998. http://www.gpo.gov/fdsys/pkg/FR-2003-01-24/html/03-1230.htm. Retrieved 24 March 2014. 
  14. ↑ Walpert, Bryan (February 2000). "How an office lab can help patients—and your income". ACP Internist. American College of Physicians. http://www.acpinternist.org/archives/2000/02/officelab.htm. Retrieved 4 April 2014. 
  15. ↑ "Laboratories by Type of Facility" (PDF). Centers for Medicare and Medicaid Services. December 2013. https://www.cms.gov/Regulations-and-Guidance/Legislation/CLIA/downloads/factype.pdf. Retrieved 3 April 2014. 
  16. ↑ Carlson, Bruce (1 December 2010). "Physician Office Lab Diagnostic Market". GEN. Genetic Engineering & Biotechnology News. http://www.genengnews.com/gen-articles/physician-office-lab-diagnostic-market/3493/. Retrieved 3 April 2014. 
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