Hospitals

Hospitals standardly outsource genetic testing to specialized laboratories whose focus is on screening human DNA. The laboratories not only process the samples, but also handle the billing and collections portions for each test. Although this is standard procedure, it's neither efficient nor effective for the laboratories, hospitals or patients. Panacea's model provides a process and service in which laboratories, hospitals and patients benefit in ways that are not currently possible in the standard business model.

Standard Process

Step 1

Hospital recognizes patient need for genetic testing, submits test order to chosen lab

Step 2

Lab processes order

Step 3

Lab bills insurance company and waits for reimbursement

STEP 4

Hospital receives results

Key Disadvantages

  • Labs must incur cost of billing, expense increases cost of test

  • Labs don't have consistent flow of business

  • Labs selling tests at premium pricing, not volume discounted

  • Patients pay lab copay and deductible for out of network labs

  • Hospitals completely removed from revenue opportunity

 

Panacea's Process

STEP 1

Panacea purchases volume-discounted genetic testing services from lab, tests purchased in smaller batches by hospital

STEP 2

Lab receives and processes test orders as usual

STEP 3

Hospital bills insurance company, receives reimbursement

STEP 4

Hospital has completely new source of revenue

Key Advantages

  • Hospitals have a completely new source of revenue- MAKE PROFIT

  • Hospitals take on billing procedure, can leverage considerable contracted payer relationships

  • Labs receive consistent, volume orders and funds- MAKE PROFIT

  • Labs save time and money on billing, drives cost of tests down

  • Patients receive "in-network" or preferred vendor billing benefits- SAVE MONEY