The CAP published the 2021 Practice Leaders Survey Report providing invaluable support for setting advocacy priorities and for informing lawmakers and regulators of the important issues facing pathologists. The survey collects information about practice demographics, case mix revenue and sources, hiring and staffing, market and regulatory issues, problems with coverage and payment. This installment focuses on the impacts of client consolidation. The 2021 survey asked practice leaders about the impact of consolidation and structural changes among their clients (eg hospitals, physician offices, or other entities to which their practices provided services).

* The observations in each row exclude those who responded “Unsure” to that part of the question. Source: Q37–Within the last two years, which of the following changes have occurred and if they have, what was the financial impact? As the table indicated, nearly 40% of respondents stated that physician clients had been acquired by a corporation or a health care system over the last two years. Just over half of this—52%—reported that these acquisitions had a negative impact on their practice.

Additionally, over 25% of practices stated that outreach clients moved their laboratory services in-house; that one or more hospitals to which they provided services merged with another hospital, became part of an integrated health system, or opted to bring its laboratory in-house; and/or that a client formed a relationship with a national or regional laboratory in the last two years. Most practices experiencing this reported that the impact was negative, with the negative impact being highest for clients moving laboratory services in-house and clients forming relationships with a national or regional laboratory.

Only 9% of respondents reported that a hospital or independent laboratory with which they contracted closed in the last two years. Of those practice leaders to whom this did occur, 76% reported that it had a negative impact on their practice.

Download the full 2021 Practice Leader Survey report (member login is required).