Laboratory Test Ordering at Physician Offices with and without On-Site Laboratories
- 111 Downloads
Physician self-referral, ordering a test or procedure or referring to a facility in which a physician has a financial interest, has been associated with increased utilization of health care services.
To examine the association between on-site laboratories and laboratory test ordering among visits to group-practice physicians.
Cross-sectional study using data from the 2005 and 2006 National Ambulatory Medical Care Surveys.
Visits by adults to non-federally-funded, non-hospital-based group practices. Primary analyses focused on visits to physician owners; secondary analyses focused on visits to non-owners.
Ordering of five laboratory tests: complete blood count (CBC), electrolytes, glycoslyated hemoglobin A1c (HbA1c), cholesterol, and prostate-specific antigen (PSA).
There were 19,163 visits to group-practice owners with 51.9% to a practice with an on-site laboratory. Visits to primary care physicians were more likely to be to a practice with an on-site laboratory when compared with visits to specialists (64.4% vs. 34.0%, p < 0.001). Among visits to specialist group owners, all five tests were ordered more often if there was an on-site laboratory, even after accounting for patient and practice characteristics: CBC: adjusted odds ratio[OR] = 8.01, 95% Confidence Interval [CI], 5.00–12.82, p < 0.001; electrolytes: aOR = 3.51, 95% CI, 1.93–6.40, p < 0.001; HbA1c: aOR = 4.91, 95% CI, 1.75–13.78, p = 0.003; cholesterol: aOR = 3.32, 95% CI, 1.85–5.93, p < 0.001; and PSA: aOR = 3.84, 95% CI, 1.93–7.65, p < 0.001. This association was not found among visits to primary care physician owners and all practice non-owners (both primary care and specialists). The estimated excess spending on these five tests by specialist owners with on-site laboratories was $75 million per 100 million visits.
In a nationally representative sample of visits to physician-owned group practices, specialist owners with on-site laboratories were more likely to order five common laboratory tests, potentially resulting in millions in excess healthcare spending.
KEY WORDSphysician self-referral reimbursement/incentive laboratories/economics laboratories/utilization
This project was not directly supported with external funds. Drs. Ross and Federman are both currently supported by the National Institute on Aging (K08 AG032886 and K23 AG028955-01, respectively) and by the American Federation of Aging Research through the Paul B. Beeson Career Development Award Program.
Conflict of Interest
- 2.Congressional Budget Office. The Long-term Outlook for Healthcare Spending 2007. Washington: Congressional Budget Office; 2007.Google Scholar
- 4.Patient Protection and Affordable Care Act, P.L. 111–148, (2010).Google Scholar
- 5.Health Care and Education Reconciliation Act P.L. 111–152, (2010).Google Scholar
- 7.Vedentam S. Doctors Reap Benefits by Doing Own Tests. The Washington Post. July 31, 2009.Google Scholar
- 10.U.S. Social Security Act. Sec. 1877., 42 U.S.C. 1395.Google Scholar
- 18.Winter A, Stensland J. Impact of physician self-referral on use of imaging services within an episode. In: Medpac, ed. Washington, DC; 2009.Google Scholar
- 19.U.S. Government Accountabiligy Office. HEHS-95-2: Medicare: Referrals to Physician-Owned Imaging Facilities Warrant HCFA's Scrutiny. Washington, DC: U.S. Government Accountability Office; October 20, 1994.Google Scholar
- 20.Centers for Disease Control and Prevention. NAMCS Scope and Design. Available at http://www.cdc.gov/nchs/ahcd/ahcd_scope.htm#namcs_scope. Accessed May 10, 2010.
- 21.Centers for Disease Control and Prevention. Physician Induction Interview. Available at http://www.cdc.gov/nchs/data/ahcd/namcs1-2006.pdf. Accessed May 10, 2010.
- 23.Centers for Medicare and Medicaid Services. 2006 Clinical Diagnostic Laboratory Fee Schedule. Available at http://www.cms.hhs.gov/ClinicalLabFeeSched/02_clinlab.asp#TopOfPage. Accessed May 10, 2010.
- 26.Medicare Payment Advisory Commission. Clinical Laboratory Services Payment System. Washington: Medicare Payment Advisory Commission; 2007.Google Scholar