A recent article in CAP Today discusses the pros and cons of hospital outreach programs and whether or not a local laboratory should accept an offer to be purchased. Baystate Health, located in Springfield, Massachusetts, is one of the largest reference laboratories in New England and has been approached numerous times by national commercial laboratories interested in a joint venture or a purchase. However, Baystate, which has notched double-digit growth in recent years, has so far opted not to sell.
Baystate uses Mayo Medical Laboratories as its primary reference laboratory. According to the article, the relationship is not based strictly on bottom-line considerations.
Jason Newmark, Vice President for Diagnostic Services at Baystate Health, says, “We have a very good synergy with Mayo.” Under the labs’ multiyear contract, “We agree to send them a percentage of our total send-out, so they are by definition our primary reference lab. Mayo is never going to beat Quest or LabCorp on price, but we don’t want to just be a client; we want a partnership, or collaboration where we can look at ways of doing innovative data analytics, utilization management, population health, and so on. We’ve found that partner in Mayo.”
Read the full article to learn more.