allocation or shortages for reagents for one modality, they can switch to another. “Just-in-time (JIT) inventory during a pandemic is
not effective,” said Hurst. “Nobody could get enough PCR tests. It has been a nightmare. The number one lesson learned is that labs must be proactive instead of reactive to get what they need.”
Getting creative with ordering Schroeder described how his lab installed a PCR testing platform in December 2020, which his team validated via a Zoom meeting with the manufacturer. At the time, they were only able to secure enough reagents to perform validation testing because the kits were on allocation with the manufacturer. The manufacturer began supplying additional reagents in April/May 2021, but the amount was still not enough to meet the lab’s testing demands. Schroeder knew he had to get creative with his ordering strategy. “I ordered 700 kits (7,000 tests) from the manufac-
turer, a 500 kit order to ensure that I would receive ad- equate allocation to perform needed patient testing.” In another case, Schroeder ordered kits for the
lab’s molecular platform used to run strep screen confirmations. Although the lab was performing 50 of these tests per day, the distributor sent them only 25 tests total. “I ordered 10 kits (250 tests) from the manufacturer, but they only sent me one kit (25 tests) because they were on allocation. We were performing 40-50 tests/ day. I called and talked to my sales rep. He said they only sent one kit (25 tests) because we were a 25-bed critical access hospital, and I explained how our lab does 6,000 strep tests per year and needs 10 kits per week. I got in touch with the testing platform’s national product manager, and we were able to place an order for 100 kits (2,500 tests), which is a five- month supply for us. I was told that the company actually brought in people and paid them overtime to fulfill our order.”
Collaborating with suppliers “Labs are always looking to vendors to help them, but it is also important that we help the vendors,” said Hurst. “Early in the pandemic, our lab offered to perform studies on COVID-19 tests for the suppliers of these tests. The benefits were all around: The sup- pliers had a lab to help validate their modalities and we had access to tests for COVID before many others did.” Jillian Bishop, Marketing and
Jillian Bishop
Engagement Manager, Electronic Imaging Materials, stressed the importance of suppliers and labs working together to help ensure testing platforms and supplies are available when needed.
26 MAY 2022
MLO-ONLINE.COM
“We’ve found labs and their suppliers need to stay a step ahead of supply chain issues in order to be prepared,” said Bishop. “[With regards to labels], the best way to do this is ensuring labels are ordered as early as possible, because many raw material shipments are being delayed and production lead times are extended.” “Another way to prepare is to qualify secondary
label materials that withstand your specific lab processes,” Bishop added. “Ask your label supplier to identify alternatives to your current labels - then test them thoroughly. If your current materials become difficult to acquire, you’ll have another option ready to go.”
Bishop says Electronic Imaging Materials sources from multiple suppliers, in multiple geographic loca- tions. They work with their lab clients to provide alternate materials that are equal, if not better, in the event of a supplier stock-out, stating: “Having a back-up material already chosen and
vetted will save you crucial time when you need to reorder. Don’t get caught without the necessary labels to keep your lab activities moving.”
Balancing costs and reimbursements As the American Clinical Laboratory Association
(ACLA) states, payers have slashed reimbursements for lab services as the costs associated with pro- viding critical laboratory services – including labor, supplies, and transportation – continue to rise.1 The survey found labs increasingly implementing
new information technology (IT) solutions to help en- sure reimbursement covers their costs. This includes: • Solutions to reduce human error (78% for non-SARS tests, 58% for SARS tests)
• Solutions to help keep current with regulations (71% for non-SARS tests, 59% for SARS tests)
• Analyzers that provide walkaway testing to reduce staffing and FTE hours (76% for non-SARS tests, 53% for SARS tests)
Improving revenue capture The lack of knowledge and/or IT systems to bill for services correctly is a major challenge to lab rev- enue, according to Jim O’Neill, Laboratory Services Business Development Manager, Advanced Data Systems. He stated: “Many laboratories have not integrated their laboratory information system (LIS) and billing and financial system appropriately, causing workflow issues and lost or dropped charges between the LIS and billing vendor. This represents billions of dollars a year that labs are losing when charges don’t come over from the LIS to the billing system.” The survey results correlate to O’Neill’s obser- vations, with 40% of respondents citing lack of interoperability between their LIS and revenue
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