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Clinical Laboratories and Pathology Groups

Hosted by Robert Michel
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COVID-19 Triggers a Cash Flow Crash at Clinical Labs Totaling US $5.2 Billion in Past Seven Weeks; Many Labs Are at Brink of Financial Collapse

Limited availability of COVID-19 clinical lab tests is major topic at federal briefings and news stories, yet many of nation’s labs are laying off staff and at point of closing

Cash flow at the nation’s clinical laboratories has crashed, with revenues down by more than $5 billion since early March. This is the biggest financial disaster for the nation’s clinical laboratory industry in its 100-year history and it couldn’t come at a worse time for the American public and the US healthcare system.

At the precise moment when the nation needs clinical laboratories to begin performing millions of tests for SARS-CoV-2, the coronavirus that causes the COVID-19 illness, those same labs are watching their cash flow collapse.

Data from multiple sources gathered by The Dark Report, sister publication of Dark Daily, confirm that—beginning in early March and continuing through last week—clinical laboratories in the United States saw incoming flows of routine specimens decline by between 50% and 60%. During this same time, lab revenue fell by similar amounts.

Clinical Lab Industry Currently Losing $800 to $900 Million Weekly

To give this decline context, the healthcare system spends about $80 billion annually on medical laboratory testing. Thus, labs across the US generated about $1.5 billion in revenue each week during 2019 and into 2020. By April 5, the decline in routine lab specimen volumes reached 55% to 60%. Since then, the clinical lab industry now loses between $800 million and $900 million each week. Total revenue loss from previous levels is already estimated to be $5.2 billion, and it is growing by an additional $800 million to $900 million every week that patients stay away from hospitals and physicians’ offices.

In the eight weeks since the COVID-19 pandemic caused patients to cease coming to hospitals and visiting their doctors, incoming routine specimens and revenue fell by 60%, causing cumulative lost routine revenue of $5.2 billion for the clinical laboratory industry in the United States. Each week that the existing shelter-in-place directives are effective, labs lose another $800 million to $900 million. The Dark Report based these estimates on data provided by multiple companies working with lab billing/claims, middleware analytical solutions, and customer relationship management (CRM) and electronic health record (EHR) products. (Chart copyright: The Dark Intelligence Group, Inc.)

The recent dire financial condition of labs small and large has gone unremarked by federal healthcare officials at the daily White House COVID-19 Task Force briefings. National news sources have yet to report on this development and its implications for successfully expanding the availability and numbers of COVID-19 tests in response to the pandemic.

The rapid and deep decline in specimens and revenue is not limited to clinical laboratories. Biopsy cases referred to anatomic pathology groups have declined by 50% to 60%. Some subspecialty pathology labs saw case referrals drop by 80% or more.

The nation’s two biggest clinical laboratory companies confirmed similar declines in their normal daily flow of routine specimens. Both companies recently reported first-quarter earnings (which included the month of March).

Quest Diagnostics, LabCorp Each Disclose Volume Declines of 50% to 60%

During its Q1 2020 earnings conference call, Chairman, President, and CEO of Quest Diagnostics (NYSE:DGX), Steve Rusckowski, stated, “In April, volume declines continue to intensify as we are seeing signs that volume declines are bottoming out at around 50% to 60%.”

The drop-off in routine lab test referrals was the similar at LabCorp (NYSE:LH). “In our diagnostics business, at the end of the quarter, we experienced reductions in demand for testing of 50% to 55% versus the company’s normal daily levels,” explained Glenn Eisenberg, Executive Vice President and CFO during LabCorp’s Q1 2020 earnings call. “This reduction in demand impacted testing volume broadly but was more heavily weighted towards routine procedures.”

Interviews with independent clinical lab owners and the administrative directors of hospital and health system labs further confirm this rapid and dramatic decline in the number of routine specimens arriving in their labs. Fewer specimens mean fewer claims, which means less revenue to laboratories.

Two Different Financial Futures for ‘Have’ Labs and ‘Have Not’ Labs

What happens next to the clinical laboratory industry in the United States—and to its ability to continue ramping up the availability of adequate numbers of COVID-19 tests in major cities, small towns, and rural areas—will be a story of “haves” and “have nots.”

The “haves” are clinical labs that have access to money. These are publicly-traded lab companies, academic medical center labs, and the sophisticated labs of health networks that operate multiple hospitals. In each case, these organizations have capital reserves and access to loans that will probably enable them to sustain COVID-19 lab testing services at the large volumes required to respond to the pandemic.

Examples of “have” labs would range from public lab companies like LabCorp, Quest Diagnostics, Sonic Healthcare USA, and BioReference Laboratories to the labs of healthcare organizations such as Mayo Clinic, Cleveland Clinic, Geisinger Health, Advocate Aurora Health, and ARUP Laboratories.

The “have nots” will be:

  • clinical laboratories that are privately-owned;
  • clinical labs operated by community hospitals and rural hospitals that were not financially robust before the onset of the pandemic; and,
  • specialty lab companies that perform a specific number of proprietary diagnostic tests (and for which demand has collapsed as patients stopped seeing their doctors).

Medicare Led Payers in the ‘Lab Test Price Race to the Bottom’

Prior to the onset of the SARS-CoV-2 pandemic, the finances of the “have-not” labs were already shaky, with many on the verge of filing bankruptcy, closing, or selling to a bigger lab company. Much blame for the deteriorating finances at a large proportion of community lab companies, community hospital labs, and rural hospital labs can be attributed to the deep, multi-year price cuts to the Medicare Part B clinical laboratory fee schedule as mandated by the Protecting Access to Medicare Act of 2014 (PAMA).

Medicare’s multi-year cuts to lab test prices were immediately copied by most state Medicaid programs. During this period, private payers followed Medicare’s lead and enacted their own deep cuts to the prices they paid labs for both routine tests and molecular/genetic tests.

That is why—when the pandemic intensified in early March—the 50% to 60% drop in specimens and revenue that hit these labs starved them of essential cash flow. When polled, the owners and directors of these labs acknowledge layoffs of the majority of their staff in all departments. They also reported substantial delays—both in submitted lab test claims and in getting payment for those claims—because claims-processing departments at the labs and private health insurers are understaffed due to shelter-in-place directives.

COVID-19 Test Revenue Helps Only Labs Performing Those Tests

Revenue from COVID-19 testing is helping certain labs offset the revenue loss from fewer routine specimens. XIFIN, Inc., a San Diego company that provides revenue cycle management (RCM) services for clinical laboratories and pathology groups, analyzed the lab test claims for COVID-19 rapid molecular tests. It determined that labs performing these tests are generating enough revenue from these test claims to equal about 20% of their pre-pandemic revenue.

The chart above was prepared by XIFIN, Inc., of San Diego and is based on the changes XIFIN observed in the volume of routine clinical laboratory test claims generated by client labs on a weekly basis. In the first two months of 2020, routine lab test claims ran at expected levels until the first week of March. During the rest of March, routine lab test claims declined by 60%. During April, incoming routine lab test claims remained 55% to 60% below pre-pandemic levels. The shaded area shows the number of COVID-19 test claims coming into clinical labs. XIFIN says COVID-19 test claims make up about 20% of the decline in routine test specimens for those labs performing COVID-19 tests. The Dark Report estimates that the clinical laboratory industry has lost $800 million to $900 million in routine test revenue each week since March 23. Weekly revenue losses will continue at this rate until patients begin visiting their physicians and hospitals again perform elective services.  (Chart copyright: XIFIN, Inc.)

Many CLIA-certified community laboratories and hospital labs have the diagnostic instruments and experience to perform rapid molecular tests for COVID-19. But when contacted, they tell us that their suppliers do not ship them even minimal quantities of the COVID-19 kits, the reagents, and the consumables. Thus, they cannot meet the needs of their client physicians. Instead, they watch as these physicians refer COVID-19 tests to the nation’s largest labs. The supply shortage prevents these smaller labs from doing larger numbers of COVID-19 test for the patients in the communities they serve. It also prevents them from earning the revenues from COVID-19 testing that currently helps the nation’s “have” labs offset the decline in revenue from routine testing.

Congress, national healthcare policymakers, and state governors need to immediately address this situation. Each week that passes during the COVID-19 pandemic and the shelter-in-place directives drains another $800 million to $900 million in revenue from routine lab testing that previously flowed into the nation’s clinical laboratories.

‘Have-not’ Clinical Labs in Small Towns Will Quietly Shrink and Disappear

Without timely intervention and financial support, the nation’s network of ‘have not’ labs, which have so capably served towns away from big metropolitan centers and rural areas, will quietly begin shrinking. One at a time, labs in small towns will close or sell. Local lab facilities will be shuttered and specimens from small-town patients will be transported to big labs hundreds or thousands of miles away.

It is also true that the financial disaster besetting the nation’s clinical laboratory industry will have comparable dramatic consequences for the in vitro diagnostics (IVD) manufacturers that sell them automation, analyzers, reagents, and other supplies. Since early March, IVD manufacturers watched as the pandemic caused orders for new instruments to collapse. During these same weeks, their clinical lab customers ceased ordering routine test kits at pre-pandemic levels. Dark Daily will cover the challenges confronting the IVD and other diagnostics industries in future e-briefings.

Announcing Free COVID-19 STAT Intelligence Briefings for Clinical Labs

With the COVID-19 pandemic creating chaos in nearly every aspect of healthcare, business, and society, clinical labs and their suppliers need timely intelligence and analysis about the innovations and successes achieved by their peers. This week, Dark Daily and The Dark Report are launching COVID-19 STAT Intelligence Briefings (Copy and paste this URL into your browser: https://www.covid19briefings.com). This comprehensive service is free and will cover four basic areas of needs for clinical laboratories as they ramp up COVID-19 testing:

  • Daily and weekly COVID-19 testing dashboards to guide every lab’s short-term planning;
  • Proven steps for labs to introduce and validate COVID-19 tests (both rapid molecular tests and serology tests);
  • Getting paid for COVID-19 testing to ensure every lab’s financial stability and clinical quality; and
  • Legal and regulatory updates for labs doing COVID19 tests to ensure full compliance.

Also, to help clinical laboratory leaders deal with the coming wave of COVID-19 serology tests, we are producing a free webinar led by James O. Westgard, PhD, FACB, and Sten Westgard, Director of Client Services and Technology, of Westgard QC, Inc.

Quality Issues Your Clinical Laboratory Should Know Before You Buy or Select COVID-19 Serology Tests,” will take place on Thursday, May 21, at 1:00 PM EDT. For details and to register, copy and paste this URL into your browser: https://www.darkdaily.com/webinar/quality-issues-your-clinical-laboratory-should-know-before-you-buy-or-select-covid-19-serology-tests.

Each week that the SARS-CoV-2 pandemic continues, and strict shelter-in-place directives are in place, the clinical laboratory industry loses another almost $900 million in revenue from lower volumes of routine testing. No industry can survive when its incoming revenue collapses by 50% to 60% for sustained periods of time.

Will Congress Recognize the Need for a Financial Rescue of ‘Have-not’ Labs?

Thus, it is incumbent on Congress, elected officials, and healthcare policymakers to recognize the financial consequences of the pandemic to the nation’s clinical laboratories. That is particularly true of the ‘have-not’ clinical labs. They do not have the same access to decisionmakers in government as billion-dollar lab companies.

And yet, these labs located in small communities and rural areas often are the only local labs that can do STAT testing in a couple of hours, and where clinical pathologists are personally familiar with local physicians and patients.

These “have-not” labs are vital healthcare resources. They should receive the help they need to get through this unprecedented crisis that is the COVID-19 pandemic.

—Robert L. Michel
Editor-in-Chief

Related Information:

Quality Issues Your Clinical Laboratory Should Know Before You Buy or Select COVID-19 Serology Tests

COVID-19 STAT Intelligence Service: Resources and Help for Labs During the SARS-CoV-2 Pandemic

COVID-19 Disruptions of Supply Chains Are One More Challenge for Clinical Laboratories to Bring Value to Hospitals and Healthcare Networks

FDA Issues First Approval for At-Home COVID-19 Test to LabCorp’s Pixel; Other Clinical Laboratory-Developed At-Home Test Kits May Soon Be Available to General Public

Serological Antibody Tests a ‘Potential Game Changer’ and Next Phase in Efforts to Combat the Spread of COVID-19 That Give Clinical Laboratories an Essential Role

A Tale of Two Countries: As the US Ramps Up Medical Laboratory Tests for COVID-19, the United Kingdom Falls Short

Medical Laboratories Need to Prepare as Public Health Officials Deal with Latest Coronavirus Outbreak

Antibody Tests Were Supposed to Help Guide Reopening Plans. They’ve Brought More Confusion than Clarity

Is the Coronavirus Antibody Test a Magic Bullet—Or False Hope?

COVID-19 Disruptions of Supply Chains Are One More Challenge for Clinical Laboratories to Bring Value to Hospitals and Healthcare Networks

Supply chain experts can explain ways clinical laboratories should evaluate their suppliers and sources

Suddenly, supply chain management has become a critical success factor as hospitals, health systems, and clinical laboratories throughout the United States respond to the COVID-19 pandemic. Demand for essential supplies has left many health network medical laboratories vulnerable and understocked.

One supply chain expert has several recommendations on how hospitals and clinical laboratories can respond to improve their access to needed supplies. Brent Bolton is Director of Supply Chain at Accumen, a developer of healthcare resource and performance solutions, including products specific to clinical laboratories. He says that expanding medical supply shortages—coupled with recently-issued federal regulatory guidelines—point to a potential “red-alert” disruption that will affect laboratories that want to maintain clinical testing services during this pandemic.  

“There are important lessons to be learned from how the COVID-19 pandemic is disrupting the healthcare supply chain,” said Bolton. “It’s important to recognize that this is not a regional disruption for providers, such as what happens after a hurricane or a severe earthquake. It’s not even a national disruption. Rather, it is a global event where hospitals, physicians, and clinical laboratories in nearly every country are competing to redirect essential supplies to their organizations.”

Bolton said that, going forward, clinical laboratories would benefit from implementing Lean and Six Sigma process improvement techniques into inventory management and purchasing procedures when contracting for instruments, reagents, consumables, specimen collection supplies, and personal protective equipment (PPE), etc. These policies work well during periods of minimal supply/demand variability. But in the wake of COVID-19 it is imperative for supply chain professionals to be flexible and cautious. He described three useful steps:

  • “Many of the large medical laboratory distributors are partnering with American manufacturers that generally don’t create lab supplies—like Hewlett Packard, 3M, and Ford. Health systems can do the same. For instance, Accumen has created a distribution network of 3D printer manufacturers that have started creating 3D printed swabs to alleviate some of the supply issues.”
  • “Brokers who claim to have product are popping up everywhere, and some of them are scams. Most of the viable supply sources for swabs or masks, for example, require large purchases and payment in advance and generally health systems are not willing to take that risk. But these are unprecedented times and supply chains must be flexible and innovative to secure the products they need.”
  • “Unfortunately, this is just the first wave of shortages. The demand for testing reagents, nasopharyngeal swabs, and transport media will normalize. But, resuming elective surgeries will create blood shortages, serological testing will create shortages in consumables and blood collection devices, and increased COVID-19 testing along with population surveillance will continue to stress PPE supplies. Supply chain teams must be proactive.”

Thus, the importance of strategic planning and awareness of alternative supply sources is key to the survival of clinical laboratories moving forward, especially during times of unpredictable upheaval.

“One big issue is having enough of the supplies needed to protect the health and safety of the laboratory’s staff,” stated Bolton. “For example, in the US, a nationwide shortage of nasopharyngeal swabs and personal protective equipment, among others, increased the chance of exposure among our critical frontline clinical laboratory workers fighting the current SARS-CoV-2 coronavirus outbreak.”

Some supply chain disruptions are unavoidable, but some may be predictable, said Bolton. As an example, he points to the 2018 bankruptcy and ultimate acquisition by Vela Diagnostics of Great Basin Scientific (GBS). At the time, GBS was gaining market share for Clostridium difficile (C. diff) testing, as well as manufacturing Staph ID/R Blood Culture panel testing. But Bolton says it was GBS’ predatory pricing strategy that was the key “warning.”

“The price for C-diff testing was a loss leader, it should have been a red flag to do an assessment on their financial status,” said Bolton. “If Abbott or Roche did that strategy it’s no big deal—for them it’s a loss leader.  But, with GBS, they had nothing else to fall back onto, so they were out of the market as quickly as they jumped in.” 

Situations like these are visible clues that can warn clinical labs that a vendor may not be able to sustain its supply chain. When lab leaders see a growing company having financial problems that may cause difficulties in how it can keep its customers supplied with kits and reagents, they can consider that a useful warning that the possibility of a supply chain disruption may soon happen.

Most medical laboratories, Bolton explained, pick vendors based on the technology they are interested in buying for use in their labs. But at the moment that purchasing decision is made, there is seldom a strategic sourcing plan, nor have pre-approved and validated alternative sources been identified as backups should an emergency arise and the supply chain from that vendor is interrupted.

“The supply chain team and the clinical lab management team should initiate a long-term strategic sourcing roadmap together, which includes risk management and emergency preparedness plans. It is just another piece of managing the lab’s supply chain and having a robust supplier management program. Everything needs to be done holistically,” he advised.

Brent Bolton (above), Director of Supply Chain for Accumen, and Adjunct Professor of Supply Chain and Operations at San Diego State University, recommends developing a strategic sourcing roadmap. “A big reason why the lab [supply chain] is complicated is that it’s constantly evolving with so many disciplines, and many of those disciplines don’t have much to do with each other,” he said during a recent Dark Daily webinar. “Being a chemist or a microbiologist or a blood banker, those are very different specialties. And on top of that, the rate of technological change is consistently shortening.” (Photo copyright: Brent Bolton.)

How Clinical Laboratories Can Remain a Health System Asset During Times of Crisis

During a recent Dark Daily webinar, Bolton said that the medical laboratory supply chain is constantly evolving and involves a myriad of sourcing variables that inevitably present challenges and opportunities.

For example, he said that in other industries, it’s common practice for vendors to receive performance reviews on a quarterly basis, measured by the facility. Companies score each supplier on quality, service response time, price changes, and on-time delivery. Other factors such as flexibility, customer service, effective e-commerce, and inventory management also can be monitored.

“Clinical laboratories should consider selecting supply vendors based on similar criteria,” suggested Bolton. “The current disruptions in lab supply chains because of the pandemic are a reminder to all labs that supply chain risk reduction and cost efficiency are two ways to think strategically about the clinical laboratory as an asset (instead of a liability) for hospitals and health systems.”

In today’s healthcare environment, hospital executives think differently about ancillary services within their health networks. Clinical laboratories, in particular, have the attention of leadership—often as a cost center. That is why lab managers should help health system leaders think more strategically and position their lab as an asset for the system and a service line to drive integration.

To help clinical laboratory leaders increase their lab’s value by preparing for potential disruption to critical supply chains, Dark Daily offers a free on-demand webinar that explains:

  • Prevailing trends and challenges of lab operations prior to COVID-19;
  • Long-term strategic supply roadmapping for lab initiatives;
  • Utilizing capital planning to improve supply costs;
  • And more.

COOs, VPs of ancillary services, laboratory leaders, and supply chain leaders will gain critical insights from this crucial resource.

For access to the free webinar, “How to Make Your Lab an Asset Instead of a Liability: What Innovative Health Systems are Doing to Place Their Labs in a Position of Strength” click here or place this URL in your browser (https://www.darkdaily.com/webinar/how-to-make-your-lab-an-asset-instead-of-a-liability-what-innovative-health-systems-are-doing-to-place-their-labs-in-a-position-of-strength/).

—Tammy Leytham

Related Information:

How to Make Your Lab an Asset Instead of a Liability: What Innovative Health Systems are Doing to Place Their Labs in a Position of Strength

10 Stories on How Coronavirus Has Affected the Healthcare Supply Chain

Abbott: Urgent Product Corrective Action for US Customers Only January 2020

Accumen Partners with EnvisionTEC to Provide High Demand COVID-19 Nasal Testing Swabs

Vela Diagnostics Expands into Microbiology with Great Basin Scientific Acquisition

FDA Issues First Approval for At-Home COVID-19 Test to LabCorp’s Pixel; Other Clinical Laboratory-Developed At-Home Test Kits May Soon Be Available to General Public

Though the potential is high for false positives and false negatives, some experts believe at-home COVID-19 testing still holds promise for slowing the spread of the coronavirus

Laboratory Corporation of America (LabCorp) is the first diagnostic test developer to receive approval from the US Food and Drug Administration (FDA) to market an at-home specimen collection kit for COVID-19. In an April 21 FDA news release, the federal agency announced it had “re-issued the emergency use authorization (EUA) for the Laboratory Corporation of America COVID-19 RT-PCR Test to permit testing of samples self-collected by patients at home using LabCorp’s Pixel by LabCorp COVID-19 Test home collection kit.”

The kit includes a nasal swab for specimen collection and a shipping package for returning the sample to a designated medical laboratory. Pixel is designed to work with LabCorp’s COVID-19 RT-PCR test, a real-time reverse transcription polymerase chain reaction (rRT-PCR) test that determines if an active SARS-CoV-2 coronavirus is present. The Pixel specimen-collection kit can be purchased for $119 on LabCorp’s website.

Presently, the Pixel kit is only available to healthcare workers and first responders who are symptomatic or who believe they may have been exposed to the virus. However, in a news release LabCorp stated that it “intends to make COVID-19 self-collection kits available to consumers in the coming weeks.”

Though purchasers have to pay for the kit themselves, a notice on LabCorp’s website states that the company “will work with you to get your purchase reimbursed by your health plan,” and that LabCorp is “actively working on a more streamlined solution, so you don’t have to pay up front.” LabCorp created a COVID-19 microsite where customers can receive future updates on the Pixel at-home test kit.

Adam Schechter LabCorp and Donald Trump
In LabCorp’s news release, Adam Schechter (at podium), President and CEO, emphasized his company’s commitment to helping patients and healthcare providers fight the COVID-19 crisis through LabCorp’s “leading testing capabilities and deep scientific and research expertise,” adding, “Our at-home collection kits are designed to make it easier and safer to test healthcare workers and first responders during this important time.” (Photo copyright: Yahoo News/Chip Somodevilla.)

Though Finger-stick At-home Tests Prove Inaccurate, Optimism Remains

As COVID-19 wreaks havoc around the globe, in vitro diagnostic (IVD) developers, clinical laboratory companies, and healthcare professionals have scrambled to find an accurate, cost effective way to definitively test individuals for the coronavirus.

Complicating matters is the fact that many people are asymptomatic carriers who show no symptoms of the illness, but who can infect others.

Earlier this year, the UK government was optimistic that an at-home serological antibodies test would enable its citizens to collect their own blood specimens via finger sticks, and that the test would provide a way for individuals to test themselves for the coronavirus.

According to CNBC, the United Kingdom (UK) ordered millions of antibody tests, but after disappointing results, returned the kits and requested a refund.

The New York Times (NYT) reported that the British government paid $20 million upfront for two million untried antibody test kits from two Chinese companies: AllTest Biotech in Hangzhou and Wondfo Biotech in Guangzhou. Then, UK government officials announced the tests would be available to citizens within weeks, and Prime Minister Boris Johnson publicly declared the tests would be “simple as a pregnancy test.”

Neither of those predictions would come to pass. In April, British researchers announced that none of the coronavirus tests they had tried were accurate enough to be of any value.

“Sadly, the tests we have looked at to date have not performed well,” said Sir John Bell, Regius Professor of Medicine, University of Oxford, Medical Sciences Division, in a blog post titled, “Trouble in Testing Land.”

“We see many false negatives … and we also see false positives,” he wrote, adding that the UK “is now uniquely positioned to evaluate and find the optimal test for this disease, but no country has found a kit that is up to standard.” He also noted that locating such a test should be possible, but that it may take another month or more to find.

The Chinese companies defended their tests. In the Chinese newspaper Global Times, Wondfo stated its tests are “intended only as a supplement for patients who had already tested positive for the virus,” and on its website, AllTest stated its tests should “only [be] used by professionals,” not by patients at home, the New York Times reported.

Will At-home COVID-19 Testing Ever Work?

At-home testing kits for COVID-19 may seem like a great solution to the testing dilemma, but they could also prove to be problematic. “This may not be as good as it sounds,” Edo Paz, MD, a New York Presbyterian-trained cardiologist, Clinical Director at Heartbeat Health, and Vice President Medical, at K Health, a digital health company located in New York City, told CNET.

“Collecting a proper sample from the nose or mouth takes training and shipping delays of the specimen back to the lab could impact the quality of the sample,” he said, adding, “There could be a high false negative rate, leading people who are actually infected to believe they are not, potentially contributing to the crisis.”

Clinical pathologists have a unique understanding of the challenges that must be overcome for capillary blood to be of any use for testing, and of the potential for mishandling of specimens inherent in at-home test kits.

Nevertheless, with the SARS-CoV-2 coronavirus continuing to infect people around the world, the number and variety of tests will likely increase, which could create an upsurge in business for clinical laboratories and present new challenges for performing COVID-19 tests.

—JP Schlingman

Related Information:

Coronavirus (COVID-19) Update: FDA Authorizes First Test for Patient At-Home Sample Collection

LabCorp’s At-home COVID-19 Test Kit is the First to be Authorized by the FDA

LabCorp COVID-19 At-Home Test Kit Receives FDA Emergency Use Authorization

LabCorp COVID-19 RT-PCR Test EUA Summary

Pixel by LabCorp COVID-19 Test (At-Home Kit)

Trouble in Testing Land

U.K. Paid $20 Million for New Coronavirus Tests. They Didn’t Work

Hopes for At-home Finger-prick Coronavirus Test Dashed after Accuracy is Questioned

Can You use a Coronavirus Home Testing Kit? Not Yet, and Here’s Why

Antibody Tests Could be Key to Reopening the Country. Here’s How They Work.

Dozens of Coronavirus Antibody Tests on the Market Were Never Vetted by the FDA, Leading to Accuracy Concerns

In New Hampshire, Cooperation Was Key to Handling Clinical Laboratory Testing Challenges Posed by the COVID-19 Outbreak

Facing a backlog, the state’s public health laboratory turned to the medical laboratory at Dartmouth Hitchcock Medical Center

Much of the attention surrounding the COVID-19 outbreak—the illness caused by the SARS-CoV-2 coronavirus—has focused on large urban areas such as New York City and Los Angeles. However, the virus is impacting many rural areas as well. This is true in New Hampshire, where the diagnostic response required close cooperation between the state’s public health laboratory and the clinical laboratory at its lone academic medical center. Their experience offers lessons for medical laboratory leaders nationwide.

“When these things happen and you surge beyond what you could imagine, it’s the relationships with people that matter more than anything,” said Christine L. Bean, PhD, Administrator of New Hampshire Public Health Laboratory Division of Public Health Services , Concord, N.H., during a recent Dark Daily webinar, titled, “What Hospital and Health System Labs Need to Know About Operational Support and Logistics During the COVID-19 Outbreak.”

As Bean explained, during the earliest stages of the pandemic the “CDC was doing the testing” and the state lab’s role was limited to submitting samples from patients deemed as “presumptive positives.” Then, on Feb. 4, the FDA granted an emergency use authorization (EUA) allowing use of the CDC-developed real-time reverse transcriptase PCR (RT-PCR) assay by designated labs.

The New Hampshire Public Health Laboratory (NHPHL) received its first test kit on Feb. 10, Bean said. But the kits were recalled due to validation problems with one of the reagents. On Feb. 26, the CDC issued revised test instructions allowing use of the test without the N3 primer and probe set that had caused the early validation issues. The NHPHL verified the test under the new guidelines and went live on March 2, she said.

However, with a capacity of 150 to 200 tests per day, the lab wasn’t equipped to handle a large volume. “Much of what we do is really population-based,” she said. “Most of the time we’re not doing patient diagnostic testing.”

Christine L. Bean, PhD (left), Administrator of the New Hampshire Public Health Laboratory, and Joel Lefferts, PhD (right), Assistant Professor of Pathology and Laboratory Medicine, and Assistant Director of the Molecular Pathology, at Dartmouth’s Geisel School of Medicine, spoke with Dark Daily’s Editor-in-Chief Robert Michel during a webinar on what hospital and health system labs need to know about operational support and logistics during the COVID-19 outbreak. The webinar can be freely downloaded by clicking here. (Photo copyright: Dark Daily.)

NHPHL Turns to the Medical Laboratory at DHMC-CGHT for Help

By April 1, the public health lab had received 3,500 samples for testing, “which is a lot for us,” said Bean. To help with the backlog, they turned to the Laboratory for Clinical Genomics and Advanced Technology at Dartmouth Hitchcock Medical Center (DHMC-CGHT) in Lebanon, N.H.

The DHMC-CGHT lab began having its own discussions about testing in the first week of February, said Joel A. Lefferts, PhD, HCLD, DABCC, Assistant Professor of Pathology and Laboratory Medicine and Assistant Director of Molecular Pathology at Dartmouth’s Geisel School of Medicine. They were unsure of how much need there would be, but “throughout the month of February, we started exploring different testing options,” he said during the Dark Daily webinar.

The Dartmouth-Hitchcock lab team began with the CDC test. However, Lefferts noted that the initial FDA guidance was “somewhat restrictive” and required specific RNA extraction kits and real-time PCR instruments. “If our lab didn’t have the capability to perform everything exactly as indicated, we would be running it off-label and would have to possibly submit our own EUA submission to the FDA,” he explained.

Later, though, the FDA and CDC loosened those restrictions and the lab began testing with the CDC assay on March 18, using a Thermo Fisher ABI 7500Dx instrument, Lefferts said. According to Thermo Fisher’s website, the ABI 7500Dx “is a real-time nucleic acid amplification and five-color fluorescence detection system available for in vitro diagnostic use.”

However, Lefferts continued, “we only had one of these 7500Dx instruments, and it was a relatively manual and labor-intensive process.” It allowed a maximum of 29 samples per run, he said, and took about five hours to produce results.

Then, the FDA granted an EUA for Abbott’s m2000 assay, which runs on the company’s m2000rt real-time PCR instrument. “We were really excited, because we happened to have two of these systems in our lab,” he said. “We quickly got on the phone and ordered some of these kits.”

The DHMC-CGHT lab went live with the new system on March 23. It can handle up to 94 samples per run, said Lefferts, and with two instruments running from 6 a.m. to 9 p.m., “there’s a potential to do as many as 10 runs per day.”

This was the system they used to help New Hampshire’s Public Health Lab with its backlog. “It was unbelievable to see that our backlog could be really wiped out,” said Bean.

Challenges for Medical Labs

Gearing up for testing in a public health emergency poses many challenges, Lefferts advised. “You need to look at what instrumentation you have in your laboratory, what the experience level of your lab team is, how much space you have, your expected batch size, and your needed turnaround time.”

The two labs also had to deal with regulatory uncertainty. “This EUA process is something for which we don’t have much experience,” he said. “Trying to juggle CLIA, CAP, the FDA, and possibly state regulations is a bit challenging. You definitely need to do your research and talk to other clinical laboratories that are doing this testing to get advice.”

Lefferts explained that the most significant challenges to develop and validate a molecular assay for COVID-19 included:

  • Availability of validation materials. Obtaining “positive [viral] samples may be a challenge, depending on where you are and what you have access to,” said Lefferts. However, he credits the FDA for being “very proactive” in suggesting alternative sources for “viral isolates or genomic RNA that’s been extracted from some of these viral isolates.”
  • Availability of collection kits. “We can do a lot more testing now,” he said, but one bottleneck is the limited availability of supplies such as nasopharyngeal swabs and viral transport media. “We’re looking at alternative collection options,” he said, such as 3D-printed swabs or even Q-tips [household cotton swabs], though “hopefully it won’t come to that.” The DHMC-CGHT lab also considered producing its own transport media.
  • Turnaround times. “Our lab wants to get those results out as soon as possible,” Lefferts said. “So, we’re looking at alternative methods to get that testing out sooner.” For example, “do we just do the SARS-CoV-2 testing on a patient, or do we need to do other influenza and other viral pathogens,” while also keeping up with other routine testing during the pandemic?
  • Staffing issues. “Fatigue is a big issue with members of our labs who put in lots of extra hours,” he said. The DHMC-CGHT lab has developed contingency plans in case lab personnel get sick.

The Bean-Lefferts 60-minute webinar was hosted by Dark Daily’s Editor-in-Chief Robert Michel on April 1. It is freely downloadable by clicking here, or by placing this URL in your web browser: https://www.darkdaily.com/webinar/what-hospital-and-health-system-labs-need-to-know-about-operational-support-and-logistics-during-the-covid-19-outbreak/.

This critical information will be highly useful for Laboratory Directors and Managers, Laboratory Supervisors and Team Leaders, Integrated Health System Leaders, Hospital Group Leaders, Physicians and Physician Group Leaders, Phlebotomy Managers, Courier and Logistics Managers, and Safety and Compliance Managers.

—Stephen Beale

Related Information:

What Hospital and Health System Labs Need to Know About Operational Support and Logistics During the COVID-19 Outbreak

Tech Companies Suggest Ways Location Tracking Could Help Health Authorities Fight the COVID-19 Coronavirus by Identifying People Who May Need Clinical Laboratory Testing

Privacy concerns have one tech giant suggesting alternatives to sharing potentially identifiable location tracking data

Expect an interesting debate on the use of location tracking as a way to manage this and future pandemics. It is a debate that has implications for clinical laboratories. After all, if location tracking identifies individuals who may have been exposed to an infectious disease, will health authorities want those individuals to be immediately tested?

Location tracking has been around for quite some time. Anyone who owns a smartphone knows that digital map and navigation software applications (apps) locate our position and track our movements. That’s how they work. Maps are good. But does collecting and sharing location tracking data violate personal privacy laws that some Silicon Valley tech giants want to use to help public health officials track disease? Maybe.

Google, Facebook, and other tech companies have been talking to the US federal government about ways to use location tracking data from smartphones and online software applications to combat the spread of SARS-CoV-2, the coronavirus that causes the COVID-19 illness, reported the Washington Post.

The tracking data could be used by public health officials to spot disease outbreaks in populations and predict how it might spread. Analyzing the data generated by smartphone tracking and reporting apps also could be used to identify individuals who may have been exposed to the coronavirus, and who should get clinical laboratory tests to determine if they need medical intervention.

However, Google is apparently resistant to using its collected location data to track and identify individuals. Instead, Google Health’s Head of Communications and Public Affairs, Johnny Luu, said Google was “exploring ways that aggregated anonymized location information could help in the fight against COVID-19. One example could be helping health authorities determine the impact of social distancing, similar to the way we show popular restaurant times and traffic patterns in Google Maps,” said Luu in a statement. He stressed, though, that any such arrangement “would not involve sharing data about any individual’s location, movement, or contacts,” reported the Washington Post.

Can Privacy be Maintained While Tracking Disease?

Google’s sister company, Verily, launched a screening website in March for people who believe they may have COVID-19. The pilot program is only available to some California residents. Users of the service complete a series of online questions to determine their coronavirus risk and whether or not they should seek medical attention.

To use the service, individuals must log into the site using a Google account and sign a consent authorization form which states data collected may be shared with public health officials, a move that has received criticism.

Jacob Snow, JD, a technology and civil liberties attorney with the American Civil Liberties Union (ACLU) of Northern California, expressed concerns about Verily’s program. “COVID-19 testing is a vital public necessity right now—a core imperative for slowing this disease,” he told CNET. “Access to critical testing should not depend on creating an account and sharing information with what is, essentially, an advertising company.

“This is how privacy invasions have the potential to disproportionately harm the vulnerable,” he continued. “Google should release this tool without those limits, so testing can proceed as quickly as possible.”

Facebook, on the other hand, has had a Disease Prevention Map program in place for about a year. This program provides location information provided by individuals who choose to participate to health organizations around the globe.

“Disease prevention maps have helped organizations respond to health emergencies for nearly a year and we’ve heard from a number of governments that they’re supportive of this work,” said Laura McGorman, Policy Lead, Data for Good at Facebook, in a statement, reported CNET. “In the coronavirus context, researchers and nonprofits can use the maps, which are built with aggregated and anonymized data that people opt in to share, to understand and help combat the spread of the virus.”

Researchers at Carnegie Mellon University worked with Facebook to create the COVID-19 Symptom Map (above), which is based on aggregated data drawn from self-reported symptoms Facebook. The map, which updates regularly, is viewable by day, counties, hospital referral regions, and COVID-19 symptoms. “This is work that social networks are well-situated to do. By distributing surveys to large numbers of people whose identities we know, we can quickly generate enough signal to correct for biases and ensure sampling is done properly,” wrote Mark Zuckerberg, Facebook founder and CEO, in a Washington Post op-ed about the Carnegie Mellon’s results, reported MobiHealthNews. (Graphic copyright: Facebook/Business Insider.)

Privacy Organizations Voice Concerns

Privacy and civil liberties issues regarding the collection and use of smartphone data to curtail the pandemic are of concern to some organizations. There may be legal and ethical implications present when using personal data in this manner.

Al Gidari, JD, Director of Privacy, Center for Internet and Society at Stanford University Law School, says the balance between privacy and pandemic policy is a delicate one, reported the Washington Post. “The problem here is that this is not a law school exam. Technology can save lives, but if the implementation unreasonably threatens privacy, more lives may be at risk,” he said.

In response to public privacy concerns following the Washington Post’s report, representatives for Google and Facebook said the companies have not shared any aggregated and anonymized data with the government regarding contact tracing and COVID-19, reported the Washington Post.

Google reiterated that any related projects are still in their early stages and that they are not sure what their participation level might look like. And, CEO Mark Zuckerberg stated that Facebook “isn’t prepared to turn over people’s location data en masse to any governments for tracking the coronavirus outbreak,” reported CNET.

“I don’t think it would make sense to share people’s data in a way where they didn’t have the opportunity to opt in to do that,” Zuckerberg said.

The potential use of location tracking data, when combined with other information, is one example of how technology can leverage non-medical information and match it with clinical data to watch population trends.

As of April 23, there were 2,637,911 confirmed cases of COVID-19 and 184,235 deaths from the coronavirus worldwide, according to www.worldometers.info/coronavirus. And, cases of coronavirus disease have been reported in 213 countries according to the World Health Organization (WHO).

As testing increases, more cases will be reported and it is unknown how long the virus will continue to spread, so advocates of location tracking and similar technologies that can be brought to bear to save lives during a disease outbreak may be worth some loss of privacy.

Pathologists and medical laboratory professionals may want to monitor the public debate over the appropriate use of location tracking. After all, at some future point, clinical laboratory test results of individuals might be added to location tracking programs to help public health authorities better monitor where disease outbreaks are occurring and how they are spreading.

—JP Schlingman

Related Information:

U.S. Government, Tech Industry Discussing Ways to Use Smartphone Location Data to Combat Coronavirus

Google, Facebook Could Help US Track Spread of Coronavirus with Phone Location Data

Google, Facebook, and Other Tech Companies Are Reportedly in Talks with the US Government to Use Your Location Data to Stop the Coronavirus—And to See If Social Distancing Is Really Working

Google Wary of Sharing User Location Data in Pandemic Fight

Google, Other Companies Get Your Data If You Use Verily’s Coronavirus Site

Zuckerberg: Facebook Isn’t Giving Governments Data to Track Coronavirus Spread

Coronavirus: Google Says It Hasn’t Shared Location Data in Virus Response

CDC: Coronavirus (COVID-19)

WHO: Coronavirus Disease (COVID-19) Outbreak Situation

Facebook Launches COVID-19 Symptom Maps

Facebook Just Released an Interactive COVID-19 Map That Shows How Many People Are Reporting Symptoms in Your Area

Facebook and Carnegie Mellon University COVID-19 Symptom Map

Facebook Rolls Out Three New COVID-19 Related Health Tracking Maps

Self-Reported Symptoms from Surveys Posted on Facebook, Google Outlets Correlate with Confirmed Tests, According to Carnegie Mellon

Drive-Through Coronavirus Testing Spreads across 30 States, Lowering Risk of Exposure to Phlebotomists and Clinical Laboratory Professionals

Prior to the SARS-CoV-2 pandemic, large-scale collection of medical laboratory specimens from patients sitting in their cars was an untried concept. That is no longer true.

As of today, residents who meet certain criteria for exposure to SARS-CoV-2—the novel coronavirus that causes the COVID-19 illness—can now have their biological specimens collected at drive-through testing centers in New York and 29 other states.

Drive-through collection of medical laboratory specimens is just one more way that the COVID-19 pandemic has changed forever how healthcare in the United States is delivered. In actual practice, drive-through sites are proving that it is possible to collect samples from large numbers of patients without needlessly exposing phlebotomists and other healthcare professionals to this new infectious agent. Another benefit is reducing the number of infected people entering hospital emergency rooms to be tested and potentially infecting everyone there.

Using a drive-through collection site does minimize exposure for phlebotomists and other frontline healthcare workers while they collect samples for testing. That is an important benefit. Yet, experience shows that in operation these centers have had mixed results.

New York State’s First Drive-through Testing Location

New Rochelle, New York—one of the hotspots of the COVID-19 infection—opened the state’s first drive-through testing facility on March 13, 2020. At the time it opened, the center was one of only 10 in the country.

During the center’s first four days, 1,882 people were tested, reported the New York Times (NYT). Every one of those people met the following criteria to be tested at the drive-through center or at any other testing center in NY:

  • Patients must have qualifying symptoms, such as a fever and cough, or be a member of a high-risk population, such as the elderly or those with pre-existing conditions.
  • Patients must make an appointment either through a doctor’s referral addressed to the New York State Health Department, the entity that issues the appointment, or by calling the New York State Coronavirus hotline.

On the Coronavirus Frontlines

A CNBC article co-written by Vivian Velasquez-Caldera, a Northwell Health phlebotomist who volunteered to work at the New Rochelle drive-through testing center, titled, “I Work at a Coronavirus Drive-thru Testing Site in New York. Here’s What a 12-Hour Shift Looks Like,” described what it’s like for frontline healthcare workers during a two-week rotation at the testing center.

Velasquez-Caldera said that the site collects more than 1,000 specimens per day on average and that every three hours couriers from BioReference Laboratories pick up the samples. Testing and recording of the samples take place at a medical laboratory in Elmwood Park, N.J., and patients usually get their results in a few days.

When patients arrive at the site, they must remain in their car with the windows rolled up. New York State troopers direct cars using megaphones from a safe distance. When it is time for the nasopharyngeal swab samples to be collected, troopers direct the car into the testing zone and the passengers roll down the windows, but remain in their car. Healthcare workers in full hazmat suits approach the car and ask each passenger to tip his or her head back so that a series of nasal swabs can be taken.

“Prior to the pandemic, only nurses and doctors were allowed to do the swabbing, so I had to train for the procedure,” wrote Velasquez-Caldera. “It’s a delicate process and just one mistake could lead to test result errors.”

Pathologists and clinical laboratory professionals should note that the medical staff doing the specimen collection at the drive-through site in Long Island, NY, shown above are in full protective gear. This is not the case at typical patient service centers operated by clinical laboratories throughout the US. (Photo copyright: Andrew Seng/The New York Times.)

Protecting Healthcare’s Finest

Phlebotomists and other frontline healthcare workers collecting specimens at drive-through testing centers are putting themselves at great risk for contracting the coronavirus. In Velasquez-Caldera’s case, as in many others, these brave individuals are doing so voluntarily, so ensuring they have protective gear is critical.

Velasquez-Caldera praises Northwell Health for its efforts in supplying workers with personal protective equipment (PPE). “I wear gloves and a jumpsuit that protect my entire body, along with a powered air-purifying respirator—a special face shield equipped with a respirator that cleans contaminated air before circulating it inside the suit,” wrote Velasquez-Caldera in her CNBC article.

Vivian Velasquez-Caldera (above), a phlebotomist with Northwell Health Labs, is shown at the drive-through COVID-19 testing site at Glen Island Park in New Rochelle, New York. “Every day, I see all kinds of expressions on people’s faces. There’s a lot of fear, yes, but mostly gratitude. They all leave and say, ‘Thank you. Thank you so much for what you’re doing,’” she said in a CNBC story she co-wrote.  (Photo copyright: Northwell Health/CNBC.)

Lessons Learned at Drive-Through Centers

While the New Rochelle COVID-19 testing center has remained opened and continues to collect thousands of specimens each week, other drive-through testing centers haven’t fared as well. For example, Brooklyn opened a drive-through testing center on March 20, 2020. But just two days later, the site was closed. 

Another drive-through testing center is being operated by Katherine Shaw Bethea Hospital (KSB) in Dixon, Ill. In an article published by the American Hospital Association (AHA), titled, “Four Lessons for Hospitals Implementing COVID-19 Drive-Through Testing,” KSB describes some of the lessons the hospital has learned thus far:

  • Know the CDC guidelines thoroughly. The team at KSB used role-playing scenarios before opening the center. “Our staff was very intent on following CDC guidelines to best protect our patients and community,” said Linda Clemen, RN, VP/Chief Nursing Officer.
  • The goal is to help patients fast, not to be perfect. “We knew we were going to make mistakes—not at the cost of patient safety, but in operations—and we knew we’d figure things out as we went along,” said David Schreiner, President/CEO.
  • Find partners in the community who can help. In Dixon, KSB does the testing, but local health departments process the tests and follow up with patients.
  • Help other organizations. “We’re receiving calls from many of our colleagues around the area,” said Clemen. “We are sending each other our plans, algorithms, whatever could help them.”

Drive-through coronavirus testing is a unique approach to collecting clinical laboratory specimens from large numbers of patients without having them enter doctors’ offices or patient service centers operated by clinical laboratories. If it can help minimize the exposure of phlebotomists and other healthcare workers collecting the specimens it is worth pursuing.

—Dava Stewart

Related Information:

In Virus Hot Spot, Lining Up and Anxious at Drive-in Test Center

I Work at a Coronavirus Drive-Thru Testing Site in New York. Here’s What a 12-Hour Shift Looks Like

Staring Down the Coronavirus

Brooklyn’s First Drive-Through Coronavirus Testing Site Opens in Coney Island

Four Lessons from Hospitals Implementing COVID-19 Drive-Through Testing

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