Industry Analysis & Industry Trends
Diagnostic and medical laboratories are an integral part of patients' medical evaluation and treatment. Laboratories are vital to the healthcare sector due to industry operators providing healthcare practitioners with information concerning the onset, severity and cause of patients' ailments and illnesses. Over the past five years, Medicare and Medicaid, which includes coverage for most clinical diagnostic laboratory services, have bolstered industry growth. In the coming years, the industry will benefit from scientific advances that yield new and improved service capabilities, coupled with the aging US population requiring more laboratory testing and diagnostic imaging services... 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 28.7% of industry revenue in 2015. However, market leaders Quest Diagnostics and Laboratory Corp of America generate about 26.1% 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