Powerful forces are reshaping the clinical laboratory industry. Deep reimbursement cuts threaten to upend traditional business models.Ongoing commoditization continues to exert margin pressure. Capital requirements are rising as budgets erode. And uncertainty is widespread about how best to manage costly esoteric testing in
a value-based world.

Many hospitals facing these and other challenges have concluded that selling their laboratory represents the most prudent path forward. The decision is understandable, given the often-substantial cash infusion and lower overhead a sale and outsourcing can produce.

This is the first of a three-part whitepaper series developed in collaboration with Mayo Clinic Laboratories and Change Healthcare.