Reflecting on 2024: Insights from Clinical Laboratory Experts

Editor’s Note: The following was first posted on December 18, 2024. Now’s a good time to look back at the way things were at the close of 2024 and see how the key trends and predictions have played out since. 

Clinical Laboratory Leaders Look Back on 2024 Trends and Look Ahead to 2025

As the calendar turned to 2025, a panel of distinguished clinical laboratory industry experts convened to reflect on the pivotal developments of 2024. Their roundtable discussion, hosted by LigoLab CEO Suren Avunjian, highlighted impactful trends, surprising innovations, and ongoing challenges that shaped the industry. 

Here are the key takeaways from their wide-ranging and insightful conversation.

Key Trends That Defined Pathology and Clinical Laboratory Management  in 2024

Artificial Intelligence: Early But Promising Developments

Bruce Friedman expressed enthusiasm for the rapid deployment of artificial intelligence (AI), emphasizing its early-stage evolution. 

“I’m curious to see how and where organizations will deploy AI next," he remarked, acknowledging the great potential of AI enhancement of diagnostics and lab operations.

Khosrow Shotorbani focused on AI’s impact on histology, particularly its pattern-recognition capabilities. 

“This emerging application has significant implications for lab efficiency and accuracy,” he said.

Discover More: Explore LigoLab’s Anatomic Pathology LIS Lab Solutions

Mergers and Acquisitions: An Accelerated Pace

The laboratory industry experienced a noticeable uptick in mergers and acquisitions in 2024. Stan Schofield highlighted the challenges and implications of this trend across three areas: operational efficiency, asset monetization, and leadership’s role. 

"Labs that are not the most efficient and cost-effective remain targets of consolidation," he said. 

He also noted that health systems are increasingly looking to sell their labs to offset financial losses and stressed the importance of strong leadership, operational productivity, and robust laboratory information system (LIS) software to safeguard labs from this vulnerability.

Shotorbani likened the situation to a battleship heading into battle without radar. He underscored the need for CEOs and CFOs to fully understand the consequences of consolidation decisions before making them.

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Digital Pathology: A Technological Leap

Digital pathology continued to reshape the field in 2024. Schofield noted a shake-up among lab vendors, with one of the top three brands exiting the market. Despite these disruptions, laboratories have continued to adopt new skills to harness the benefits of digital pathology tools.

Friedman highlighted digital pathology efficiencies, including replacing traditional practices such as pathologists traveling to perform frozen sections. 

“With the digital transformation, most of the work is done by technicians, with pathologists focusing on quality control and complex cases,” he said.

Looking ahead, Friedman predicted that within five years, about 80 percent of routine surgical pathology cases will be diagnosed almost entirely and independently by AI, requiring pathologist reviews only on a random sample of cases for quality control.

Shotorbani also emphasized the cost savings and scalability of consolidating histology within a network model, with digital images enabling unprecedented mobility and collaboration.

Industry Insights: ECPC’s Strategic Leap into Digital Pathology - A Connected Vision for the Future

Cybersecurity: A Growing Priority

As cyberattacks surged in 2024, Schofield identified cybersecurity as a top-five issue for laboratories, highlighting three key dimensions:

Increased Attacks: Large health systems faced costly breaches, while smaller labs suffered frequent but lower-scale attacks.

Preemptive Measures: Lab vendors must now pass rigorous cybersecurity checks before deploying new instruments.

Financial Strain: Limited budgets for smaller labs make them particularly vulnerable, underscoring the need for stronger defenses across the industry.

Discover More: LigoLab’s Enhanced Cybersecurity Solutions Give Customers Added Protection and Peace of Mind

Looking Ahead to 2025: Optimism Amid Challenges

The veteran lab experts offered mixed perspectives on the future.

Rising Costs and the Lab's Critical Role

Shotorbani expressed concern over rising costs and reduced margins but remained optimistic about the lab’s critical role in managing chronic conditions. 

"Labs provide more actionable information for the cost than any other healthcare sector," he emphasized.

Regulatory Relief and the Need for Agility

Schofield hoped for regulatory relief under the new administration, particularly regarding lab-developed tests (LDTs) and reimbursement cuts. He stressed agility, creativity, and commitment as vital to overcoming challenges in 2025.

The Growing Threat to Scientific Expertise

Friedman cautioned against the growing political skepticism toward expertise in general and toward health issues in particular. As proof, he noted vaccine and fluoridation skepticism. 

"This attack on expertise will be a long-term phenomenon," he warned. “I don’t know how we can prosper in an environment where experts are no longer trusted.”

On-Demand Webinar (featuring Friedman, Schofield, and Shotorbani): Emerging Technologies of the Future Lab

Meeting the Challenges with Collective Resolve 

2024 was marked by significant transformations, from advancements in AI and digital pathology solutions to pressing cybersecurity concerns and mergers and acquisitions activity. As the laboratory industry steps into 2025, it faces a dual mandate: to embrace innovation while safeguarding the integrity and resilience of its operations and finances.

Whether these challenges yield growth or further strain depends on the collective resolve of laboratories, health systems, and leaders to navigate an increasingly complex landscape.

About the Panelists

Our heartfelt thanks go out to the panelists for their contributions to this forum. As we move into 2025, expertise and guidance from such leaders will ensure lab directors always have a seat at the executive table and operate in the best interests of lab medicine.

Bruce A. Friedman, MD

Bruce A. Friedman is an Emeritus Professor of Pathology at the University of Michigan Medical School and a respected thought leader at the intersection of healthcare and technology. His specialties include pathology informatics and strategic planning in pathology and lab medicine. A winner of the 2022 Distinguished Service Award from the API, Dr. Friedman has made significant contributions to the field through his research, teaching, and writing. He recently authored an op-ed for CAP Today exploring the transformative impact of for-profit tech corporations entering the healthcare industry.

Stan Schofield

Stan Schofield is a recognized leader in the healthcare and laboratory industries and the Founder and Managing Principal of The Compass Group, an association of 32 regional laboratory corporations affiliated with some of the largest and most prestigious healthcare systems in the United States. He previously served as President of NorDx and Senior Vice President of Laboratory Services within MaineHealth, retiring from both roles in January 2023.

Khosrow Shotorbani

Khosrow Shotorbani is the CEO and founder of Lab 2.0 Strategic Services, LLC, and a prominent advocate for Clinical Laboratory 2.0 through his work with Project Santa Fe. As the former President and CEO of TriCore Reference Laboratories, he led the organization's strategic direction, emphasizing leadership, innovation, operational excellence, and financial health. A visionary in the field of diagnostic services, Shotorbani played a key role in establishing Project Santa Fe, which aimed to redefine the economic valuation and strategic placement of diagnostic services. 

Frequently Asked Questions About the Lab Industry

What role is AI currently playing in clinical laboratories?

AI is in its early stages of deployment in clinical labs but is already demonstrating significant promise, particularly in histology pattern recognition, which has direct implications for lab efficiency and diagnostic accuracy. A robust laboratory information system (LIS) can help facilitate AI deployment and ensure seamless data integration. 

Why did mergers and acquisitions accelerate in the lab industry in 2024?

M&A activity increased largely because labs that failed to demonstrate operational efficiency, profitability, and strategic value became targets for consolidation. Health systems under financial pressure began selling lab assets to offset losses. The panelists in this post agreed that strong leadership, modern LIS software, and proven productivity metrics help labs remain independent and competitive.

What is driving the growth of digital pathology?

Advances in whole-slide imaging, AI-assisted diagnosis, and the practical benefits of remote collaboration are driving growth in digital pathology. The benefits of digital pathology tools enable technicians to handle more routine work while pathologists focus on complex cases, reducing travel requirements, improving turnaround times, and enabling histology consolidation across networks. Despite vendor market disruption in 2024, laboratory adoption of the latest digital pathology solutions continues to accelerate.

Why is cybersecurity increasingly important for clinical laboratories?

Cyberattacks surged in 2024, targeting both large health systems and smaller independent labs. Large systems faced costly, high-profile breaches while smaller labs experienced more frequent, lower-scale attacks, often with fewer resources to defend against them. Laboratory information system companies now play a key role in cybersecurity, as lab vendors must pass rigorous security checks before deploying instruments, and labs are under growing pressure to upgrade from legacy LIS systems lacking modern security infrastructure.