The Changing Role of Ancillary Health Care Service Providers: An Evaluation of Health Diagnostic Laboratory, Inc.

Abstract

In an effort to reduce cost and improve quality, health care payers have enacted a number of incentives to motivate providers to focus their efforts on achieving better clinical outcomes and reducing the prevalence and progression of disease. In response to these incentives, providers are entering into new arrangements such as accountable care organizations and patient-centered medical homes to redesign delivery processes and achieve quality and cost objectives. This article reports the results of a study designed to evaluate the impact on cost and quality of care resulting from services provided by Health Diagnostic Laboratory, Inc., a clinical laboratory with a comprehensive care model. The results show that patients who utilized these laboratory services experienced lower total cost of care (23% reduction, P<0.01) and improved lipid profiles during the follow-up period. Total cost reductions were related to cost reductions found in both inpatient and ambulatory care. These findings suggest that accountable care organizations, patient-centered medical homes, and other groups entering shared savings initiatives should consider the potential role ancillary service providers with comprehensive care models can play in the delivery of integrated care.

Ancillary Cost Implications of Physicians Multisiting and Inter‐Organizational Collaboration During Healthcare Delivery

“…To the best of our knowledge, this is the first study to focus on the understudied link between multisiting physicians and ancillary cost in the healthcare context (Gittell 2002, Thompson et al. 2014). Next to patient stay, ancillary costs represent the second highest source of healthcare expenditure in the U.S. Our analysis shows that patients treated by multisiting physicians experience lower ancillary costs in the form of laboratory and radiology charges, but not on pharmaceutical charges.…”

“…Further, healthcare researchers have called for increased attention to ancillary services and their associated cost in delivering effective and efficient care (Thompson et al. 2014). We have taken the first step to answer these calls.…”

“…Indeed, our focus on ancillary cost and its three distinctive dimensions highlights the importance of considering different cost structures in healthcare delivery (Arora et al 2015) to engender a comprehensive understanding of multisiting physicians' effects. Further, healthcare researchers have called for increased attention to ancillary services and their associated cost in delivering effective and efficient care (Thompson et al 2014). We have taken the first step to answer these calls.…”