Table 1 Laboratory business model characteristics.

From: Laboratory business models and practices: implications for availability and access to germline genetic testing

Emergent topics and subtopics

For-profit and not-for-profit full-service laboratories (FSL)

For-profit germline laboratories (PGL)

Not-for-profit germline laboratories (NGL)

Billing

   Third-party billinga

   Client billingb

  

   Direct patient billing

 

 

Contracting

   Payersc

 

   Health-care organizations/hospitals

   Value-based reimbursementd

 

 

   Researche

  

Business arrangements

   Acquisitions/mergers

 

   Investors

 

 

Partnerships

   Industryf

 

 

   Academiag

Pricing

   Diagnostic service

   Commodity-basedh

 

 

Consumer-facing servicei

   Available

 

 

   Not available

 

  1. aThe payer, an insurance company or health agency uninvolved in the direct care of the patient that pays for the care or services rendered to the patient (i.e., the first party).
  2. bDescribed as “account” or “pass­through” billing, where medical providers compensate a laboratory for testing services and submit claims to payers for those services.
  3. cPayers, as described by key informants: health insurance companies, employer groups.
  4. dReimbursed based on cost-effective, improved quality of care rather than volume.
  5. eContracts to perform germline testing, most often exome or genome sequencing, to support research performed by other organizations (e.g., biotechnology companies, pharmaceutical companies, or academic institutions).
  6. fPartnerships with pharmaceutical and biotechnology companies for companion diagnostics and gene discovery.
  7. gFSLs tend to gain technological expertise (test development, results interpretation) through academic partnerships, whereas PGLs and NGLs typically have research partnerships with academia.
  8. hDiscounted pricing with the expectation of future payoffs.
  9. iConsumers request genetic testing using a laboratory-contracted physician or medical corporation.