Remembering COVID: CMS COVID-19 Payments are Helping Labs Offset Revenue Loss

Editor’s Note: On May 11, 2023, the World Health Organization declared the official end of the global COVID-19 Public Health Emergency. While much of the world has moved forward, healthcare professionals, especially those working with laboratory information systems (LIS software) and pathology lab management, must carry forward the lessons learned to better prepare for future infectious disease threats.

Discover More: End of the Federal COVID-19 Public Health Emergency (PHE) Declaration

At LigoLab, supporting our lab partners throughout the pandemic was our highest priority. We quickly adapted to evolving needs, delivering innovative medical LIS software solutions that helped laboratories overcome unprecedented challenges. From streamlining clinical lab workflows to enhancing patient and provider safety, our collaborative approach fostered resilience in times of crisis.

A defining aspect of this journey was documenting the perseverance of our partners on the front lines in real time. As we honor their dedication, we look back to a pivotal moment from May 9, 2020, reflecting not only on the impact of COVID-19 but also on the future of LIS healthcare technology and its role in strengthening laboratory operations.

COVID-19 Disruption Creates Financial Uncertainty for U.S. Labs

The Dark Report (April 20, 2020: Lab, Path Finances Crash; Next Test Wave; Serology) accurately highlighted the stark reality facing U.S. laboratories. While their role in protecting public health has never been more essential, many labs are struggling with uncertain financial futures as a result of the COVID-19 pandemic.

For more than a month, specimen volumes have plummeted as routine physician visits and elective procedures were put on hold. Laboratories that were already navigating shrinking margins and high denial rates must now balance a growing challenge: addressing major disruptions to their business operations while simultaneously answering the urgent call from public health officials to expand testing capacity.

Amid the uncertainty, there is a silver lining. For laboratories that can quickly adapt, the surge in demand for COVID-19 testing offers an opportunity to offset some of the revenue losses caused by the downturn in traditional testing volumes.

CMS Doubles Medicare Payment for High-Throughput COVID-19 Tests

Beginning April 14, 2020, and lasting through the COVID-19 national emergency, CMS announced it would double Medicare reimbursement to $100 for select tests performed with high-throughput technologies. These advanced technologies enable laboratories to handle and diagnose tens of thousands of COVID-19 cases with speed and accuracy.

This policy shift is welcome news for LigoLab customers, who have been leveraging our all-in-one medical LIS & lab billing informatics platform since mid-March to integrate with analyzers, automate workflows, maintain quality control, and streamline reporting. Thanks to their quick adoption, these labs are already testing 35,000 samples per day, a number expected to climb significantly in the coming weeks.

We applaud the dedication and speed of our partner labs in scaling operations to meet the public health demand. At the same time, we remain convinced that widespread, robust testing across a greater percentage of the population is essential before the nation can safely begin its return to normal.

Preparing for the Next Waves of COVID-19 Testing

Looking ahead, we share The Dark Report’s view that laboratories will experience two distinct waves of testing: first molecular (PCR) testing, followed by antibody (serology) testing. Antibody screening will become increasingly important in the coming months as researchers advance vaccine development.

LigoLab is working closely with our partner labs to prepare for this transition, while also encouraging laboratories nationwide to join the effort. Labs considering the addition of PCR or serology testing are invited to participate in LigoLab’s Fireside Chat, where frontline professionals will share their experiences in the fight against COVID-19.

What topics will be covered?

• Bringing up COVID-19 workflows to increase testing capacity, offset the loss of normal lab revenue, and gain customers
• How pathology labs are bringing up molecular LIS testing
• PCR (molecular) and serology (antibody) testing
• Selecting the right LIS system/direct-to-consumer lab testing platform, and automation
• Sourcing and developing supplies in-house, and how to connect with verified lab vendors who can help with instruments, equipment, PPE, testing kits, and testing supplies
• The methodology behind the pooling of samples to increase capacity, speed up turnaround times, and lower the cost of reagents
• Utilizing a network of labs and load balancing for high-volume capacity and streamlined distribution of specimens
• Laboratory billing/lab revenue cycle management questions, advice, and best practices 

Introducing TestDirectly: Expanding COVID-19 Testing Capacity

We’re excited to introduce TestDirectly, a direct-to-consumer lab testing platform designed to help laboratories increase testing volumes. This innovative tool connects patients, employers, and collection centers to deliver fast, simple, and safe COVID-19 testing and reporting.

TestDirectly creates direct-to-consumer labs by supporting the full lifecycle of drive-through testing while also meeting the reporting needs of government agencies and business-to-business clients.

To learn more about LigoLab’s mission to unite laboratories nationwide with scalable workflows, capacity management, and expertise for COVID-19 testing, we encourage you to connect with a LigoLab product specialist and explore the possibilities that can become realities with TestDirectly. 

Discover More: Best Direct-to-Consumer Lab Testing Platforms - Feature Comparison and Analysis

Learn More About LigoLab

LigoLab offers an all-in-one laboratory information system (LIS) and lab revenue cycle management software that helps testing organizations work more efficiently and grow faster. Since 2006, the diagnostic lab software company has supported hundreds of clinical, pathology, molecular, and reference labs across the country. The LigoLab platform combines technical, administrative, and financial operations in one place.

The laboratory information system software removes data silos and reduces manual steps. It covers the full diagnostic process from accessioning and specimen tracking to grossing, results, reporting, lab billing, and compliance. Rules-driven workflows, automation, and real-time business intelligence all help lab customers process more cases with fewer mistakes and shorter turnaround times.

Because advanced RCM tools are embedded, labs can better manage reimbursements, lower denial rates, and strengthen financial performance. That’s because technical and financial operations run in one system, making it easier to adapt to changes in an ever-evolving industry.

LigoLab works with labs as a partner. The goal is to help them scale, stay resilient, and deliver accurate results that support patient care.

Discover More: LigoLab Informatics Platform - Uniquely Designed to Deliver Maximum Value‍