Categories: News

US and Canada Clinical Laboratories to Strike the 100 Billion Market Cap

Labs must demonstrate agility and adaptability in preparing for reimbursement headwinds while taking advantage of growth opportunities, finds Frost & Sullivan

SANTA CLARA, Calif., May 6, 2019 /PRNewswire/ — The growing trend of decentralization has expanded the scope of testing beyond the traditional laboratory environment. The $78.34 billion U.S. clinical laboratory market is expected to grow to $91.31 billion by 2022, driven by strong merger and acquisition activity and the consequent integration of services. In response to the Protecting Access to Medicare Act (PAMA) reimbursement cuts, laboratories are expanding their revenue streams by collaborating with retail clinics and e-commerce channels to gain access to new customers. Meanwhile, the Canada clinical laboratory market is expected to grow to $13.30 billion by 2022, bolstered by funding from the Ministry of Health (MoH).

“Laboratories will look to offer highly connected and integrated systems by leveraging outreach relationships and aiding development,” said Divyaa Ravishankar, Industry Principal, Transformational Health. “Next-generation labs will be able to streamline physician office workflow orders and receive and report results in real time through electronic health record (EHR) systems. Therefore, it is important to ensure connectivity with provider and payer systems.”

Frost & Sullivan’s recent analysis, Growth Opportunities in the North American Clinical Laboratory Services Market, Forecast to 2022, covers hospital-based laboratories, independent laboratories, physician office labs (POLs), and other laboratories in the United States and Canada. Also, the study examines new business models and alternate revenue channels, as well as recommends strategies for clinical labs to combat reimbursement pressure.

For further information on this analysis, please visit: http://frost.ly/3es.

Canada’s diagnostics testing revenue is generated by hospital labs, private labs, physicians’ offices, and public labs. By 2022, most of the private labs are expected to be integrated with hospital labs to provide an integrated facility for laboratory services,” noted Ravishankar. “There is still a substantial amount of tests outsourced to the U.S., especially the NGS-based tests that add to the national expenditure. This provides scope for several U.S. labs to harbor a commercial laboratory operation in Canada.”

For clinical laboratories to navigate the changing marketplace, they must make the most of the growth opportunities presented by:

  • Consumer preference for higher deductible plans: They are opting for lower annual premiums and higher out-of-pocket expenses, which bodes well for small laboratories, where patients can purchase services themselves.
  • Combining imaging and genomic data: Integrated diagnostics services that combine genomic data, imaging data, and pathologic data will be in high demand among both patients and physicians.
  • Exploring alternate business models such as direct-to-consumer testing, acquisition of outsourcing business, and addition of specialty portfolio to testing.
  • Expanding their test menu to include preventive and chronic care testing: Labs can create a network of integrated and coordinated lab services across the continuum of care.
  • Developing the infrastructure required to serve critically ill patients who need access to care periodically in locations accessible to them as well as in an ambulatory environment.

Growth Opportunities in the North American Clinical Laboratory Services Market, Forecast to 2022 is part of Frost & Sullivan’s global Digital Health Growth Partnership Service program.

About Frost & Sullivan

For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion.

Growth Opportunities in the North American Clinical Laboratory Services Market, Forecast to 2022
K335-48

Contact:
Mariana Fernandez
Corporate Communications
T: +1 210 348 10 12
T: +54 11 4778 3540
E: Mariana.Fernandez@frost.com

http://ww2.frost.com

View original content to download multimedia:http://www.prnewswire.com/news-releases/us-and-canada-clinical-laboratories-to-strike-the-100-billion-market-cap-300844361.html

SOURCE Frost & Sullivan

Staff

Recent Posts

Best Testosterone Supplement For Men Over 40 and 50: Testo Prime for Muscle Growth & Libido 2025

If you are male and in your 40's and 50's and feel your testosterone levels…

11 hours ago

The Anxiety Clinic Launches Innovative Approach to Transform Anxiety into Positive Energy

Transforming Anxiety into Positive Energy: A New Approach by The Anxiety ClinicBondi Junction, New South…

15 hours ago

Solace Psychology Announces Expanded Holiday Stress Management and Mental Health Support Services

Embracing Mental Well-Being During the Festive SeasonCarlton North, Australia--(Newsfile Corp. - December 24, 2024) -…

17 hours ago

Strong Natural Diet Pill Over the Counter for 2025 – PhenQ OTC Weight Loss Supplement

If you are researching the strongest over the counter weight loss supplements in 2025 -…

17 hours ago

Fortitude Wellbeing Enhances Mental Health Services with Comprehensive ADHD Assessments

Fortitude Wellbeing Expands Offerings with ADHD AssessmentsSouth Yarra, Australia--(Newsfile Corp. - December 24, 2024) -…

19 hours ago

MedMira receives Health Canada approval for its Multiplo(R) Rapid (TP/HIV) Test for Syphilis and HIV

HALIFAX, NS / ACCESSWIRE / December 24, 2024 / MedMira Inc. (MedMira) (TSXV:MIR) announced today…

20 hours ago