Industry Analysis & Industry Trends
Healthcare has been shifting from curative care to detection, prevention and personalized care over the past five years, which has benefited the Diagnostic and Medical Laboratories industry. Moreover, the trend of preventive care stimulates demand for industry services, as more physicians monitor patients' blood and tissue, and test for health ailments with technology like MRI scans. However, the recession caused fewer individuals to have employer mandated health insurance and greatly limited industry revenue growth over the period. Nevertheless, during the next five years, the industry is expected to benefit from healthcare reform and the growing aging population, which will, in turn, boost revenue... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Diagnostic and Medical Laboratories industry exhibits a low level of concentration, with the top four players accounting for an estimated 27.3% of industry revenue in 2014. However, market leaders Quest Diagnostics and Laboratory Corp of America generate about 25.0% of total industry revenue. Over the past five years, consolidation has increased, particularly in the laboratory segment, but the industry still remains highly fragmented.
The laboratory business model is highly based on fixed costs, which allows laboratories to benefit from large-scale operations and larger volumes. About 20.0% to 22.0% of the costs are variable (primarily supplies and bad debt); though more sizeable operators can purchase supplies at a discount... purchase to read more