Diagnostic tests are very important because they improve patient care, contribute to the protection of consumer health, and help to limit healthcare spending, which is a major economic issue in every country throughout the world.
Improving Patient Care
Between 60% and 70% of medical decisions are made based on vitro diagnostic test results. The quality of care is impacted by diagnostics in the following ways:
- Detecting and diagnosing disease more rapidly and at an earlier stage, even before symptoms occur,
- Determining disease risk earlier,
- Choosing more targeted, effective, and often less invasive treatments,
- Monitoring treatment to effectively manage chronic diseases
- Estimating patient prognosis.
Protecting Consumer Health
Diagnostic tests are used by food processing, pharmaceutical and cosmetics companies to check on the microbiological quality of their products and the environment in which they are manufactured. These quality control tools ensure that the products are safe to use, protecting consumer health.
Positive Impact on Healthcare Costs
Healthcare spending is also controlled by diagnostic because appropriate tests are carried out in time, reducing the risk of trial and error treatment or over prescription. Despite the fact that majority of medical decisions are made based on diagnostics, only 1% of funds are allocated to healthcare around the world. The cost of in vitro tests is generally very low compared with:
- The medical service provided
- The savings generated by shortening the time taken to provide treatment
- The duration of hospital stays
True Health Diagnostics buys bankrupt Health Diagnostics Laboratory for $37.1 million
Since we are talking about health diagnostics, we can now take a look at True Health Diagnostics, who bought the cash strapped Health Diagnostics Laboratory. They are supposed to pay $37.1 million for the laboratory, making it the largest provider of its type in the country.
Located in Frisco, Texas, True Health took over Health Diagnostics of Richmond, Virginia, with a court supervising the bankruptcy auction on September 11, according to the company. True Health is now the premier diabetes and cardiovascular advanced clinical diagnostics in the United States, according to their CEO, Chris Grottenthaler.
The sale by Health Diagnostics ends a decline that began with a whistleblower-based federal investigation into claims the cardiovascular testing laboratory, along with Singulex Inc. of California, paid physician’s kickbacks for patient referrals, according to the Department of Justice.
According to the Justice department, in April, the federal government announced settlements with both companies, HDL agreeing to pay $47 million and Singulex, $1.5 million respectively. HDL admitted to not doing anything wrong. Started in 2008, HDL had grown to a company with a revenue of $374 million in 2013, with $152 million of that coming from Medicare, according to the Wall Street Journal. A fraud investigation led to the resignation of the CEO, Tonya Mallory, as the company business began to unravel.
According to the Wall Street Journal, through court papers, HDL said, “The confluence of these events” and “certain payer issues and changes in billing practices in certain states that affected the fees earned by HDL from each sample test” hit the company’s business hard. Health Diagnostics Laboratory filed for Chapter 11 bankruptcy for reorganization and offered itself for sale to pay off debts.
True Health agreed to pay $37.1 million to take over all of HDL’s business assets, $5.1 million more than its initial bid, according to the Richmond Times-Dispatch. The final approval of the sale is expected from the U.S. Bankruptcy Court on September 16.
True Health Diagnostics specializes in bio-markers, enabling healthcare providers to more accurately diagnose, manage, and prevent the progression of cardiovascular diseases, genetic disorders, diabetes and other metabolic conditions, according to the company. HDL provides tests designed to detect early signs of conditions such as heart disease and diabetes. Acquiring HD gave the providers additional diagnostics to help them improve early detection, reduce risk and costs, and save lives, according to True Health. True Health will operate HDL’s operations in Richmond.