The Value of Clinical Laboratory Services

Value Now…

Clinical laboratory testing plays an essential part in the delivery of quality health care. Laboratory tests provide physicians with objective data needed to promptly diagnose and effectively treat and monitor disease. It is estimated that lab testing has an impact on over 70 percent of medical decisions, yet laboratory services account for only three percent of health care spending (and two percent of Medicare expenditures). By equipping physicians with critical information, laboratory tests ultimately save lives and reduce overall health care costs.

…And In The Future

As the baby-boom generation reaches retirement, the number of Americans over age 65 will increase fivefold. This demographic shift will focus more attention on preventable diseases associated with an aging population, including cancer, stroke, diabetes, hypertension and cardiovascular disease. The recently enacted Medicare Prescription Drug, Improvement and Modernization Act (P.L. 108-173) added coverage for diabetes and cardiovascular disease screening tests, as well as an initial physical for all Medicare beneficiaries. Clinical laboratory services will play a vital role in these screening and prevention efforts, which will result in health benefits for Medicare beneficiaries and a healthier financial outlook for the Medicare program.

How Lab Testing Works

Clinical laboratory tests are furnished in three distinct settings: independent laboratories, hospital laboratories, and physician office laboratories. The American Clinical Laboratory Association's (ACLA's) membership consists of local, regional and national independent clinical laboratories. Independent laboratories are laboratories that are not located in a hospital or physician office, and which provide testing and related services to the medical community. With their focus exclusively on clinical testing, independent laboratories are able to offer a broad range of high quality services cost-effectively.

A physician usually orders lab tests for one of three purposes: diagnosis, screening or monitoring of a patient's disease or condition. Once the physician determines that tests are needed for an evaluation, the physician or another provider collects a specimen from the patient and often sends it to the laboratory. Less frequently, patients may go to a laboratory "draw station" to have the specimen collected. When the laboratory receives the patient's specimen, it is uniquely identified and examined to make certain that it is appropriate for the ordered testing. While some tests are manually evaluated, most tests are performed using technically advanced instrumentation. For all testing, laboratories employ teams of licensed, highly skilled medical professionals specially trained to perform the analyses. After testing is completed, the laboratory issues a report to the ordering physician.

How Labs Are Regulated

Clinical labs are regulated by the Clinical Laboratory Improvement Amendments (CLIA), enacted in 1988. CLIA established stringent federal quality standards for all clinical laboratories. ACLA was an early and vigorous proponent of CLIA and continues to support its implementation.