News, Analysis, Trends, Management Innovations for
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Clinical Laboratories and Pathology Groups

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Innovative Programs by Geisinger Health and Kaiser Permanente Are Moving Providers in Unexplored Directions in Support of Proactive Clinical Care

These initiatives are a call-to-action for clinical laboratories to contribute their expertise in support of wellness programs

Two of the largest healthcare systems in America are moving in non-traditional directions to proactively address certain healthcare populations. Most recently, Kaiser Permanente announced it will be investing millions of dollars to tackle homelessness and the disease outbreaks associated with it. The health system is even investing in a housing complex in Oakland, Calif., which it hopes will help patients in that area who face housing insecurity.

Kaiser’s new direction mirrors a similar project by Geisinger Health designed to address the health of certain populations. In 2017, Geisinger launched what it calls the “Fresh Food Farmacy” for its adult diabetic and obese patients to give them access to healthy foods. Geisinger finds this service saves substantial money in downstream medical expenses because the patients are healthier.

If these programs are harbingers of things to come, clinical laboratories open to supporting such wellness programs will find opportunities heading their way.

Healthcare and Homelessness

Kaiser Permanente’s announced $200 million investment in the new program begins with a $5.2 million purchase of affordable housing in Oakland, Calif. Kaiser is working with Enterprise Community Partners and the East Bay Asian Local Development Corporation (EBALDC).

The housing complex consists of 41-units and is in an area where existing residents are at risk of displacement due to gentrification. Kaiser Permanente’s purchase means the complex will be blocked from redevelopment and will remain affordable for the residents who live there.

“Housing security is a crucial health issue for vulnerable populations,” Bernard Tyson, Chairman and CEO at Kaiser Permanente, stated in a news release. “Access to affordable housing is a key component to Kaiser Permanente’s mission to improve the health of our members and the communities we serve.”

This unusual move is part of a larger strategy to invest in the economic, social, and environmental conditions that impact the health of Kaiser’s patients. It’s also part of a greater trend toward value-based, proactive healthcare.

“We know that differences in health are striking in communities with poor social determinants of health such as unstable housing, low income, and unsafe neighborhoods,” said Richard Isaacs, MD, CEO and Executive Director of The Permanente Medical Group, in the news release. “These innovative strategies are critically important steps toward the maintenance of health improvement, consistent health outcomes, and California health equity.” (Photo copyright: Kaiser Permanente.)

Proactive versus Reactive Care

Healthcare delivery in the US is transitioning from volume-based to value-based care. The Kaiser and Geisinger projects are championing another equally critical change—proactive care instead of reactive care. This shift in priorities promises to change how health systems and healthcare providers think about healthcare delivery. And clinical pathology laboratories play a critical role in these changes.

“Specifically, in the transition from volume-based to value-based healthcare, clinical laboratories are called upon to provide programmatic leadership in reducing total cost of care through optimization of time-to-diagnosis and time-to-effective therapeutics, optimization of care coordination, and programmatic support of wellness care, screening, and monitoring. This call to action is more than working with industry stakeholders on the basis of our expertise; it is providing leadership in creating the programs that accomplish these objectives,” James M. Crawford, MD, PhD, and co-authors, noted in their paper, “Improving American Healthcare Through Clinical Lab 2.0: Santa Fe Report,” published in the journal Academic Pathology.  

Food as a Prescription

Patients encounter all sorts of challenges in addition to housing. Geisinger Health’s Fresh Food Farmacy program promises to help obese and diabetic patients who face food insecurity maintain healthy diets. Coupled with exercise, the program acts like medication in helping regulate blood sugar and improving long-term outcomes for people with diabetes.

Patients in the program are given a referral, called a prescription, by their primary care physician. Once enrolled, they receive a welcome kit that includes food measurement instruments, recipes, and nutritional information. Each week, they also receive enough food to prepare healthy, nutritious meals twice a day for five days for their families.

Enrolled patients attend weekly support groups to learn about self-management. And they complete an online wellness class to help them learn about nutrition. The program also offers free cooking and nutrition classes taught by dieticians and health coaches.

Proactive, Value-Based Care and Population Health

“With what’s happening in this nation right now, there’s never been a more important time for us to focus in on this population and to do that through a united front,” Lloyd Dean, CEO at CommonSpirit Health (formerly known as Dignity Health), told Forbes.

The housing program at Kaiser Permanente and the Fresh Food Farmacy at Geisinger are just two of the latest examples that healthcare providers are increasingly focusing on population health. The fee-for-service model of healthcare pays health systems, hospitals, and other providers, based on the number of sick they treat. These new programs, however, move the entire healthcare system toward keeping people from getting sick in the first place.

“I think there’s no doubt that we need to emphasize both health needs and social service needs, and we should be thinking about these collectively and not in silos,” Signe Peterson Flieger, PhD, Assistant Professor of Public Health and Community Medicine at Tufts University, told Forbes.

As progressive health networks such as Kaiser Permanente and Geisinger move the traditional sites and types of medical care into new settings and new directions, medical laboratory managers and personnel need to stay alert for opportunities to support innovative, new health and wellness programs in their communities.

—Dava Stewart

Related Information:

Kaiser Permanent Just Invested in a Housing Complex. Here’s What It’s Doing with It

3 Initiatives to Tackle Housing Insecurity

Improving American Healthcare Through “Clinical Lab 2.0”: A Project Santa Fe Report

Fresh Food Farmacy

The Man Who Used to Run Medicaid Has a New Idea to Make It Better 

Multiomics Genetic Research May Give Clinical Laboratories New Capabilities in the Diagnosis and Treatment of Cancers in Children

Three-platform genetic sequencing offers hope for improved pediatric oncology diagnostics and precision medicine therapies

Dark Daily has long predicted that multiomics will someday play an important role in clinical laboratory diagnostic medicine. Now, new research from St. Jude Children’s Research Hospital provides early evidence of that prediction coming to fruition. 

Scientists at St. Jude’s have discovered that performing different genetic tests on pediatric cancer patients, and then combining those test results, may help guide and improve patient care.

The research was part of a St. Jude’s project called Genomes for Kids (G4K), a study to determine how genetic information may be used to diagnose and treat pediatric cancers.  Through this project, the researchers hope to learn why tumors form in children and predict how tumors will respond to certain treatments. 

‘It’s a Whole Lot of Sequencing.’

Few tragedies are worse than cancer in children. This is where precision medicine treatments can be critical, and multiomics may play an important role in the development of new therapies.

Multiomics refers to a biological analysis approach in which multiple “omes” are analyzed together in a collaborative way to locate relevant biomarkers and functional relationships. These “omes” include:

To perform their research, the St. Jude scientists examined 253 pediatric cancer patients by conducting whole genome sequencing (WGS), whole exome sequencing (WES), and RNA sequencing of their tumors. They also looked at the WGS and WES of non-cancerous tissues extracted from the same cancer patients.

“It is a whole lot of sequencing. I admit that,” Scott Newman, PhD, Group Lead, Bioinformatics Analysis at St. Jude’s, told The Scientist.

“With results available in a clinically relevant time frame, and pricing becoming increasingly comparable to the radiology and pathology tests, WGS is becoming more accessible to pediatric oncology patients,” said Scott Newman, PhD (above), Group Lead, Bioinformatics Analysis, at St. Jude’s, in an American Society of Human Genetics (ASHG) news release. (Photo copyright: ASHG.)

As a result of their three-platform testing, the researchers discovered there was at least one finding for each patient that could be useful in providing a diagnosis, revealing risks for individual patients, or pinpointing which drugs may be most beneficial for a particular patient in nearly 200 (79%) of the cases. Such findings are at the heart of precision medicine.

The researchers also compared their sequencing results to cancer panels that use next-generation sequencing (NGS) to target specific genes or mutations relevant to a certain cancer phenotype. During this portion of the research, they discovered that the cancer panels missed 11% to 16% of actionable genes relating to diagnosis, prognosis, and treatment. 

“This is either good news or bad news, depending on how you look at it,” Newman said. “Personally, I am amazed at how well these panels do and how well they have been designed. But, if you want to know every mutation that you would probably want to report, you have to do comprehensive sequencing.”

First Multi-Platform Genomic Sequencing Study

“To our knowledge, this is the first clinical study where this comprehensive three-platform genomic sequencing approach was offered prospectively to all pediatric oncology patients,” said Kim Nichols, MD, Director, Division of Cancer Predisposition at St. Jude’s, in a St. Jude’s blog post.  

The testing costs $8,600 per patient, but is considered worth it to improve patient diagnosis, prognosis, and treatment for pediatric cancer patients.

“Compared with the cost of many other procedures that children with cancer undergo, the cost is likely comparable, or even less—for example, compared with complex surgical procedures or multiple radiology tests,” Nichols said.

In addition, the test results are available in less than 30 days, which makes them more valuable, as time can be a critical asset to cancer management.  

The scientists hope this type of three-platform genetic testing can help guide care for pediatric cancer patients. 

Because so few of the molecular lesions in pediatric cancer are targetable by specific drugs, currently it is the diagnostic and prognostic insights provided by the three-platform approach that appear most clinically impactful,” said Nichols. “From a diagnostic perspective, tumors may look the same under a microscope, but the identification of specific genetic changes can direct you to the correct diagnosis, and therefore, the most appropriate therapy. From a prognostic perspective, you will have different risk stratifications depending on results.”

The results of the research were presented at the 2018 annual meeting of the American Society of Human Genetics in San Diego last October. The St. Jude’s researchers hope that this type of research can drive wider adoption of WGS in the assessment of pediatric tumors to improve patient outcomes. Pathologists and medical laboratory scientists will want to watch for additional research findings as the team at St. Jude’s uses this approach on more pediatric cancer patients.

—JP Schlingman

Related Information:

Genome, Exome, RNA Sequencing Applied to Pediatric Cancer Cases

Genome Sequencing Found Feasible and Informative for Pediatric Cancer Treatment

Recommendations Reported at ASHG 2018 Annual Meeting

Genomes for Kids Brochure

What You’re Missing If You’re Only Sequencing Exomes or RNA

Onco-Multi-OMICS Approach: A New Frontier in Cancer Research

Metabolomics Promises to Provide New Diagnostic Biomarkers, Assays for Personalized Medicine and Medical Laboratories

Might Proteomics Challenge the Cult of DNA-Centricity? Some Clinical Laboratory Diagnostic Developers See Opportunity in Protein-Centered Diagnostics

Introducing “Salivaomics” As the Basis for Cheap, Accurate Diagnostic Tests—Administered by Your Dentist!

Aspenti Health Takes Home Grand Prize in Nation’s First Clinical Lab 2.0 ‘Shark Tank’ Competition Showcasing Added-Value Clinical Success Stories

Vermont-based clinical laboratory company integrates social determinants of health (SDH) with lab data to help doctors at University of Vermont Health Network better manage their opioid patients

Aspenti Health, a full-service diagnostic laboratory specializing in toxicology screening, has won the nation’s first ever Clinical Lab 2.0 “Shark Tank”! The competition was held May 2, 2019, in conjunction with the 24th Annual Executive War College on Lab and Pathology Management in New Orleans.

The Clinical Lab 2.0 “Shark Tank” showcased forward-thinking clinical laboratories and anatomic pathology groups that are committed to the Clinical Lab 2.0 movement, a Project Santa Fe Foundation initiative aimed at guiding laboratories from test volume to lab value models.

“We are thrilled to be recognized for our work serving the unique needs of substance use healthcare. And, most importantly, across our organization for our unyielding commitment to employing innovations to solve this [opioid] crisis,” Aspenti Health CEO Chris Powell stated in the news release.

The projects were judged on Clinical Lab 2.0 attributes, such as:

  • Risk stratification by population;
  • Closure of care gaps;
  • Lab results as early detection; and
  • Lab intervention for improved clinical outcomes.

“This project, as well as all of the other cases that were presented, were quite strong and all were aligned with the mission of the Clinical Lab 2.0 Movement,” said Khosrow R. Shotorbani, President, Executive Director, Project Santa Fe Foundation, in a news release. “This movement transforms the analytic results from a laboratory into actionable intelligence at the patient visit in partnership with front-liners and clinicians—allowing for identification of patient risks—and arming providers with insights to guide therapeutic interventions.

“Further, it reduces the administrative burden on providers by collecting SDH [social determinants of health] predictors in advance and tying them to outcomes of interest,” continued Shotorbani. “By bringing SDH predictors to the office visit, it enables providers to engage in SDH without relying on their own data collection—a current care gap in many practices. The lab becomes a catalyst helping to manage the population we serve.”

Co-Use of Opioids Tied to Social Factors

Aspenti Health’s “Shark Tank” entry—“Integration of the Clinical Laboratory and Social Determinants of Health in the Management of Substance Use”—focused on the social factors tied to the co-use of opioids and benzodiazepines, a combination that puts patients at higher risk of drug-related overdose or death. The project revealed the top two predictors of co-use were the:

  • Prescribing provider practice, and the
  • Patient’s age.
“This was a unique project because it integrated social determinants, which are a key part of our overall health and wellness, with laboratory data, which is well-defined, quantitative, and very accurate,” said Jill Warrington, MD, PhD (above), Chief Medical Officer at Aspenti Health and Assistant Professor in the Department of Pathology and Laboratory Medicine University of Vermont Medical Center, in an exclusive interview with Dark Daily. “So, combining something that is really meaningful clinically with something that is very predictive and accurate has a nice blend of strengths.” (Photo copyright: Aspenti Health.)

Myra L. Wilkerson, MD, who served on a three-judge panel tasked with selecting the winning project, said the Vermont toxicology laboratory’s entry stood out in two key areas.

“We felt their project had an application to a broader population, but also moved beyond traditional [laboratory] functions or even medicine,” explains Wilkerson, who is Chair of the Diagnostic Medicine Institute for the Geisinger Health System. “Patient advocacy groups, payers, and providers all have come to realize you can identify a disease, you can provide a treatment, but so many other things impact it, especially in this community. When it is an addiction, there are so many other factors that play into whether or not they are going to be successful in their treatment plan. And a lot of them are social things.”

Educating Care Givers and Public on Dangers of Co-Use Drug Addictions

Working in collaboration with Staple Health and the University of Vermont Health Network, Aspenti selected “co-use” for this initial lab outcome study because of the significant patient safety implications and relative simplicity of its definition—the co-presence of positive laboratory results for both opioids and benzodiazepines.

According to the National Institute on Drug Abuse, more than 30% of overdoses involving opioids also involve benzodiazepines. Aspenti’s “Shark Tank” presentation highlighted the fact that co-use of the drugs accounts for nearly 2.5% of opioid-related emergency department visits, costing the healthcare system an estimated $47.5 million per year.

Based on the study results, Aspenti Health plans to develop educational programs that warn about the dangers of co-using opioids and benzodiazepines.

“We identified geographically hotspots where co-use was more prevalent, so we can target our educational initiatives centered on those geographical locations—not just to providers, but also to families and patients—to raise awareness about co-use so the risks are mitigated collectively,” Warrington said.

Advancing the Value-based Healthcare Agenda

The Executive War College Clinical Lab 2.0 “Shark Tank” advances a conversation about the lab industry’s future that began at the inaugural 2016 Project Santa Fe meeting. Lab industry stakeholders brainstormed about the transition from volume-based to value-based healthcare, and the role laboratory-driven innovations could play in reducing total cost of care.

As healthcare shifts to a value-based reimbursement model, Wilkerson believes laboratory leaders must re-engineer their role in the continuum of care by creating meaningful clinical diagnostic insights for population health initiatives.

“What’s your executive leadership concerned about? What are your payers concerned about? What are your accrediting or regulatory bodies concerned about? What are their top priorities and how can you do something that improves patient care but helps them address their problems as well?” she asks. “That’s where you create value.”

As the Clinical Lab 2.0 Innovation Award winner, Aspenti Health will receive:

  • An invitation to speak at national lab conferences this fall;
  • A consultation with a Project Santa Fe member lab to discuss successful Clinical Lab 2.0 innovations and identify new ways to deliver more value in patient care; and
  • Publication of a case study of their Clinical Lab 2.0 project by Dark Daily or its sister publication The Dark Report.

With labs in Vermont and Massachusetts, Aspenti continues to identify opportunities for directly contributing to improvements in the care of substance abuse and pain management patients. Warrington says that with its SDH project, Aspenti plans to focus on other key laboratory outcome measures—such as treatment adherence and relapse. Next steps include integrating this work into the practices of partner doctors within the University of Vermont Health Network.

Wilkerson’s advice to other clinical laboratories is to follow Aspenti Health’s lead.  

“When you look at the national trends, the percentage of traditional fee-for-service or volume-based healthcare is going to go down to 25% of the total healthcare spend by 2021,” she points out. “The other 75% will be based on value-added services around quality metrics, efficiency, cost reduction, utilization, etc. Labs that aren’t starting to think this way now are going to be behind and at risk in the future.”

—Andrea Downing Peck

Related Information:

Aspenti Health Wins Clinical Lab 2.0 Innovation Award

First-Ever ‘Shark Tank’ on Clinical Lab 2.0 and Adding Value Happens May 2 in New Orleans: Clinical Laboratories with Innovative Services Invited to Present

Improving American Healthcare Through “Clinical Lab 20”: A Project Santa Fe Report

National Institute on Drug Abuse: Benzodiazepines and Opioids

Project Santa Fe Labs Deliver Value with Tests

Improving American Healthcare Through “Clinical Lab 2.0”: A Project Santa Fe Report

Researchers at Massachusetts General Hospital Identify Ways That CRISPR DNA Base Editors Sometimes Unintentionally Alter RNA

These “off-target” genetic alterations demonstrate that certain CRISPR base editors need further refinement in a research finding of interest to pathologists

Could CRISPR DNA-editing technology unintentionally effect RNA as well? A new study conducted at Massachusetts General Hospital (MGH) suggests that it can. Clinical laboratories doing genetic testing will want to understand why this research implies that refinements to CRISPR may be needed for it to be accurate in therapeutic applications.

For years, a huge value of CRISPR (Clustered Regularly Interspaced Short Palindromic Repeats) base editors have been their ability to edit genes or convert a specific DNA base without breaking the DNA. Now, the MGH scientists have discovered that certain CRISPR base editors may extend beyond the targeted DNA and perform unwanted edits to RNA, according to a news release.

“Most investigation of off-target base editing has focused on DNA, but we have found that this technology can induce large numbers of RNA alterations as well. This surprising finding suggests the need to look at more than just genetic alterations when considering unintended off-target effects of base editors in cells,” J. Keith Joung, MD, PhD, MGH Pathologist and Professor of Pathology at Harvard Medical School, stated in the news release.

The MGH scientists published their study in Nature.

How the MGH Researchers Found Off-Target Effects on RNA

The researchers had set their sights on developing a base editor that targets cytosine, according to the study.

“Previous studies of cytosine base editor specifically have identified off-target DNA edits in human cells. Here, we show that a cytosine base editor with rat APOBEC1 [rAPOBEC1] enzyme can cause extensive transcriptome-wide RNA cytosine deamination in human cells,” the scientists wrote in Nature.

According to the news release, when the researchers put base editors into human liver and kidney cells, they found their technology induced efficient edits at the target DNA site. However, they also discovered tens of thousands of cytosine-to-uracil edits in the cells. They found that deaminases, an enzyme that acts as a catalyst, which they used in their base editor to change DNA, also altered the RNA in the cells, Science reported.

“Base editors are still incredibly powerful tools. This is just another parameter we need to understand,” J. Keith Joung, MD, PhD (above), MGH Pathologist and Professor of Pathology at Harvard Medical School, told Science. (Photo copyright: Massachusetts General Hospital.)

The researchers developed a way to reduce the unwanted RNA edits, while maintaining the targeted DNA effects. They came up with cytosine base editor variants, which they dubbed SElective Curbing of Unwanted RNA Editing (SECURE).

“We engineered two cytosine base editor variants bearing rAPOBEC1 mutations that substantially decreased the number of RNA edits in human cells,” the researchers wrote in their study.

However, they also called for changes to how base editors are used. “For research applications, scientists using base editors will need to account for potential RNA off-target effects in their experiments,” the MGH news release notes. “For therapeutic applications, our results further argue for limiting the duration of base-editor expression to the shortest length of time possible and the importance of minimizing and accounting for potential impacts of these effects in safety assessments.”

 Other Studies Explore CRISPR

Other studies published earlier this year on mice and on rice also suggested that “modified CRISPR-Cas9 technology will need to be further refined before it can safely be used for research and therapeutic applications,” The Scientist reported.

Clinical laboratory leaders and pathologists recognize CRISPR technology is changing the way research is done for diagnosing disease as well as guiding treatment. Dark Daily has reported on key CRISPR developments over many years.

And now, though the MGH study may appear to be a set-back for CRISPR, it also may propel further research into possible therapeutic applications of CRISPR base editing. It’s a development worth watching.

—Donna Marie Pocius

Related Information:

CRISPR Base Editors Can Induce Wide-Ranging Off-Target RNA Edits

Transcriptome-wide Off-Target RNA Editing Induced by CRISPR-Guided DNA Base Editors

What Are the Key Differences Between DNA and RNA?

Powerful CRISPR Cousin Accidentally Mutates RNA While Editing DNA Target

Cytosine Base Editor Generates Substantial Off-Target Single Nucleotide Variants in Mouse Embryos

Cytosine, But Not Adenine, Base Editors Induce Genome-Wide Off-Target Mutations in Rice

Base Editors Cause Off-Target Mutations in RNA

CRISPR Base Editing, Known for Precision, Hits a Snag with Off-Target Mutations

New AHA Report Finds Hospital Outpatient Revenue Nearing Inpatient Revenue, While CMS Proposes Paying Less for In-hospital Healthcare Services

Clinical laboratories that service both settings could be impacted as new CMS proposed rule attempts to align Medicare’s payment policies for outpatient and in-patient settings

Hospital outpatient revenue is catching up to inpatient revenue, according to data released from the American Hospital Association (AHA). This increase is part of a growing trend to reduce healthcare costs by treating patients outside of hospital settings. It’s a trend that is supported by the White House and Medicare and continues to impact clinical laboratories, which serve both hospital inpatient and outpatient customers.

The AHA published this study data in its annual Hospital Statistics, 2019 Edition. The data comes from a 2017 survey of 5,262 US hospitals. The report includes data about utilization, revenue, expenses, and other indicators for 2017, as well as historical data.

The AHA statistics on outpatient revenue suggest providers nationwide are working to keep people out of more expensive hospital settings. Hospitals, like medical laboratories, appear to be succeeding at developing outpatient and outreach services that generate needed operating revenue.

This aligns with Medicare’s push to make healthcare more accessible through outpatient settings, such as urgent care clinics and physician’s offices. A growing trend Dark Daily has covered extensively.

Outpatient Revenue Climbs

In its coverage of the AHA’s study, Modern Healthcare reported that 2017 hospital net inpatient revenue was $498 billion and net outpatient revenue was $472 billion.

The Becker’s Hospital CFO Report notes that gross inpatient revenue in 2017 was $92.7 billion higher than gross outpatient revenue. But in 2016, gross inpatient revenue was much further ahead—$129.5 billion more than gross outpatient revenue. The “divide” between inpatient and outpatient revenue is narrowing, Becker’s reports.


The graphic above illustrates the shrinking gap between hospital inpatient and outpatient revenues. “Outpatient revenue will ultimately eclipse inpatient revenue,” Chuck Alsdurf, Director of Healthcare Finance Policy and Operational Initiatives at the Healthcare Financial Management Association (HFMA), told Modern Healthcare. (Graphic copyright: Modern Healthcare/AHA.)

 The Becker’s report also stated:

  • Admissions increased by less than 1% to 34.3 million in 2017, up from 34 million in 2016;
  • Inpatient days were flat at 186.2 million;
  • Outpatient visits rose by 1.2% to 766 million in 2017; and,
  • Outpatient revenue increased 5.7% between 2016 and 2017.

Similar Study Offers Additional Insight into 2018 Outpatient Revenue

A benchmarking report by Crowe, a public accounting, consulting, and technology firm, which analyzed data from 622 hospitals for the period January through September of 2017 and 2018, showed the following, as reported by RevCycleIntelligence:

  • Inpatient volume was up 0.6% in 2018 and gross revenue per case grew by 5.3%;
  • Outpatient services rose 2.4% in 2018 and gross revenue per case was up 7.1%.

Physicians’ Offices Have Lower Prices for Some Hospital Outpatient Services

Everything, however, is relative. When certain healthcare services traditionally rendered in physician’s offices are rendered, instead, in hospital outpatient settings, the numbers tell a different story.

In fact, according to the Health Care Cost Institute (HCCI), the price for services was “always higher” when performed in an outpatient setting, as compared to doctor’s offices.

HCCI analyzed services at outpatient facilities as well as those appropriate to freestanding physician offices. They found the following differences in 2017 prices:

  • Diagnostic and screening ultrasound: $241 in physician’s office—$650 in hospital outpatient setting;
  • Level 5 drug administration: $254 in office—$664 in hospital outpatient setting;
  • Upper airway endoscopy: $527 in office—$2,679 in hospital outpatient setting.

One example where hospital outpatient settings provide similar services at increased costs is in drug administration, as the graphic above illustrates. “The difference was higher than I expected. With some services, the price is two or three times higher when rendered in the outpatient setting,” Julie Reiff, HCCI researcher and report author, told Fierce Healthcare. (Graphic copyright: HCCI.)

Medicare Proposed Rule Would Change How Hospital Outpatient Clinics Get Paid

Meanwhile, the Centers for Medicare and Medicaid Services (CMS) has released its final rule (CMS-1695-FC), which make changes to Medicare’s hospital outpatient prospective payment and ambulatory surgical center payment systems and quality reporting programs.

In a news release, CMS stated that it “is moving toward site neutral payments for clinic visits (which are essentially check-ups with a clinician). Clinic visits are the most common service billed under the OPPS [Medicare’s Hospital Outpatient Prospective Payment System). Currently, CMS often pays more for the same type of clinic visit in the hospital outpatient setting than in the physician office setting.”

“CMS is also proposing to close a potential loophole through which providers are billing patients more for visits in hospital outpatient departments when they create new service lines,” the news release states.

Hospitals are fighting the policy change through a lawsuit, Fierce Healthcare reported.

In summary, clinical laboratories based in hospitals and health systems are in the outpatient as well as inpatient business. Medical laboratory tests contribute to growth in outpatient revenue, and physician offices compete with clinical laboratories for some outpatient tests and procedures. Thus, a new site-neutral CMS payment policy could affect the payments hospitals receive for clinic visits by Medicare patients.

—Donna Marie Pocius

Related Information:

AHA Hospital Statistics 2019

AHA Data Show Hospitals’ Outpatient Revenue Nearing Inpatient

Hospitals’ Outpatient Revenue Inching Closer to Inpatient Revenue

“My Net Revenue is Stable,” said No CFO Ever . . .

Revenue Unable Despite Outpatient Volume Growth

Shifting Care from Office to Outpatient Settings: Services are Increasingly Performed in Outpatient Settings with Higher Prices

From Physician Offices to Outpatient Settings and Costs Go Up, HCCI Study Finds

CMS Empowers Patients and Ensures Site Neutral Payment Proposed Rule

University of Queensland Researches May Have Found a Universal Biomarker That Identifies Cancer in Various Human Cells in Just 10 Minutes!

This research could lead to a useful liquid biopsy test that would be a powerful new tool for clinical laboratories and anatomic pathologists

Cancer researchers have long sought the Holy Grail of diagnostics—a single biomarker that can quickly detect cancer from blood or biopsied tissue. Now, researchers in Australia may have found that treasure. And the preliminary diagnostic test they have developed reportedly can return results in just 10 minutes with 90% accuracy.

In a news release, University of Queensland researchers discussed identifying a “simple signature” that was common to all forms of cancer, but which would stand out among healthy cells. This development will be of interest to both surgical pathologists and clinical laboratory managers. Many researchers looking for cancer markers in blood are using the term “liquid biopsies” to describe assays they hope to develop which would be less invasive than a tissue biopsy.

“This unique nano-scaled DNA signature appeared in every type of breast cancer we examined, and in other forms of cancer including prostate, colorectal, and lymphoma,” said Abu Sina, PhD, Postdoctoral Research Fellow at the Australian Institute for Bioengineering and Nanotechnology (AIBN), University of Queensland (UQ), in the news release.

“We designed a simple test using gold nanoparticles that instantly change color to determine if the three-dimensional nanostructures of cancer DNA are present,’ said Matt Trau, PhD, Professor of Chemistry at the University of Queensland, and Deputy Director and Co-Founder of UQ’s AIBN, in the news release.

The team’s test is preliminary, and more research is needed before it will be ready for Australia’s histopathology laboratories (anatomic pathology labs in the US). Still, UQ’s research is the latest example of how increased knowledge of DNA is making it possible for researchers to identify new biomarkers for cancer and other diseases.

“We certainly don’t know yet whether it’s the holy grail for all cancer diagnostics, but it looks really interesting as an incredibly simple universal marker of cancer, and as an accessible and inexpensive technology that doesn’t require complicated lab-based equipment like DNA sequencing,” Trau added.

Such a diagnostic test would be a boon to clinical laboratories and anatomic pathology groups involved in cancer diagnosis and the development of precision medicine treatments.

One Test, 90% Accuracy, Many Cancers

The UQ researchers published their study in the journal Nature Communications. In it, they noted that “Epigenetic reprogramming in cancer genomes creates a distinct methylation landscape encompassing clustered methylation at regulatory regions separated by large intergenic tracks of hypomethylated regions. This methylation landscape that we referred to as ‘Methylscape’ is displayed by most cancer types, thus may serve as a universal cancer biomarker.”

While methyl patterning is not new, the UQ researchers say they were the first to note the effects of methyl pattern in a particular solution—water. With the aid of transmission electron microscopy, the scientists saw DNA fragments in three-dimensional structures in the water. But they did not observe the signature in normal tissues in water.

Methylation are marks that indicate whether pieces of DNA should be read,” Dino DiCarlo, PhD, Professor in the Department of Bioengineering and Biomedical Engineering, University of California Los Angeles (UCLA) and Director of Cancer Nanotechnology at UCLA’s Jonsson Comprehensive Cancer Center, told USA Today.


“To date, most research has focused on the biological consequences of DNA Methylscape changes, whereas its impact on DNA physicochemical properties remains unexplored,” UQ scientists Matt Trau, PhD (left), Abu Sina, PhD (center), and Laura Carrascosa (right), wrote in their study. “We exploit these Methylscape differences to develop simple, highly sensitive, and selective electrochemical or colorimetric one-step assays for the detection of cancer.” (Photo copyright: University of Queensland.)

Their test averaged 90% accuracy during the testing of 200 human cancer samples. Furthermore, the researchers found the DNA structure to be the same in breast, prostate, and bowel cancers, as well as lymphomas, noted The Conversation.

“We find that DNA polymeric behavior is strongly affected by differential patterning of methylcytosine leading to fundamental differences in DNA solvation and DNA-gold affinity between cancerous and normal genomes,” the researchers wrote in NatureCommunications.“We exploit these methylscape differences to develop simple, highly sensitive, and selective electrochemical or one-step assays for detection of cancer.”

Next Steps for the “Gold Test”

“This approach represents an exciting step forward in detecting tumor DNA in blood samples and opens up the possibility of a generalized blood-based test to detect cancer, Ged Brady, PhD, Cancer Research UK Manchester Institute, told The Oxford Scientist. “Further clinical studies are required to evaluate the full clinic potential of the method.”

Researchers said the next step is a larger clinical study to explore just how fast cancer can be detected. They expressed interest in finding different cancers in body fluids and at various stages. Another opportunity they envision is to use the cancer assay with a mobile device.

DiCarlo told USA Today that such a mobile test could be helpful to clinicians needing fast answers for people in rural areas. However, he’s also concerned about false positives. “You don’t expect all tumors to have the same methylation pattern because there’s so many different ways that cancer can develop,” he told USA Today. “There are some pieces that don’t exactly align logically.”

The UQ researchers have produced an intriguing study that differs from other liquid biopsy papers covered by Dark Daily. While their test may need to be used in combination with other diagnostic tests—MRI, mammography, etc.—it has the potential to one day be used by clinical laboratories to quickly reveal diverse types of cancers.  

—Donna Marie Pocius

Related Information:

Nano-Signature Discovery Could Revolutionize Cancer Diagnosis

Epigentically Reprogrammed Methylation Landscape Drives the DNA Self-Assembly and Serves as a Universal Cancer Biomarker

One Test to Diagnose Them All: Researchers Exploit Cancers’ Unique DNA Signature

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Universal 10-Minute Cancer Test in Sight

A 10-Minute, Universal Blood Test for Cancer

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