How to Bring Laboratory Testing In-House The Right Way

The right way to implement in-house laboratory testing is not with a build-it-and-bail setup—it’s with an experienced, long-term partner. PhytestDX is the only company that plans, designs, builds, staffs, manages, and operates in-house laboratories for physician practices. We offer a turnkey solution that ensures your lab is clinically excellent, financially sustainable, and seamlessly integrated into your practice.

Why Practices Are Determining In-House Laboratory Testing Makes Sense

Many physician practices are now determining in-house laboratory testing is essential for staying competitive. Whether you’re an OB/GYN clinic performing genetic screening or a primary care group managing chronic conditions, having an in-house lab shortens turnaround time, improves patient care, and generates new revenue.

Practices are realizing that the old model of sending tests out to reference laboratories forfeits operational, clinical, and financial control. Independent practices are increasingly exploring avenues to remain empowered in a healthcare landscape where private practices are becoming obsolete. In-house laboratory testing means faster diagnostics meaning faster treatment decisions and better patient outcomes. It also becomes a powerful tool in the practice environment where the diagnostic team and providers work hand-in-hand more closely than ever before, improving operational aspects. And when done correctly, in-house lab testing can become a major revenue driver—if it’s done correctly.

The Hidden Risks of DIY or “Build-It-and-Bail” Lab Setups

Unfortunately, many practices get burned by vendors and laboratory consulting companies who sell the dream of an in-house lab but don’t provide the insight to what it takes to make that shiny new laboratory successful. These companies help with construction and initial setup, take their profits, and disappear. What remains is a practice left managing:

• Compliance
• Staffing and training
• Quality control and inventory
• Complex laboratory billing and collections

Without a long-term operating model, practices often underperform financially and clinically. A laboratory can quickly become a cost-center rather than a source of profit and benefit to a practice. This is where PhytestDX is different.

Requirements for Setting Up a Laboratory—And Why Meeting Them Isn’t Enough

Understanding the requirements for setting up a laboratory is a critical first step. Practices must comply with:

• CLIA certification
• State licensure
• Personnel qualifications (e.g., lab director, testing personnel)
• Lab test validation and documentation
• Proper documentation of Standard Operating Procedures (SOPs)

These laboratory set up requirements can be overwhelming for practices not familiar with clinical lab operations. But even when these boxes are checked, success is not guaranteed. The real challenge lies in managing and optimizing the lab over time—a role most vendors won’t stick around for or brief you on before you’ve signed the contracts.

PhytestDX handles all of these requirements on your behalf and goes further by working with your practice as a long-term partner in ongoing laboratory operations, management, and revenue cycle management.

Implementing In-Office Lab Testing Without the Risks

Implementing in office lab testing can be disruptive and costly if not done carefully. Most practices don’t have the internal capacity or knowledge in operating clinically and financially successful laboratories.

Many practices that have considered bringing laboratory testing in-house likely have hesitated by the upfront investment required. And rightfully so! Laboratory consulting companies and vendors are skilled in provided inflated pro formas that give practices all of the dreams of huge returns, but none of the reality in making that happen. Once laboratories are built, practices can wind up spending more time, money, and resources exhausting themselves in getting the laboratory operating than anticipated.

With PhytestDX, we provide your practice with all of the knowledge and know-how in operating and managing a successful laboratory. Our team handles everything that comes after buildout, including:

• Licensures
• CLIA certification
• Equipment validations and maintenance
• Laboratory staffing and training
• Laboratory Director sourcing
• Inventory management
• Reporting and analytics
• Laboratory billing and collections
• And even more services that not only make your laboratory successful, but excellent

Our model ensures that your team continues doing what they do best while the lab runs smoothly in the background. The result? Your patients get timely, high-quality testing while your practice generates new reliable, impactful revenue.

Billing for In-House Laboratory Testing

The most obvious but most complex area that is the difference between your practice seeing any returns on an in-house laboratory is getting paid for the tests that will be run. Practices and laboratories alike underestimate the complexity of lab billing. Lab claims are subject to intense payer scrutiny, denial risk, and ever-changing rules. Without expert billing management, a lab may generate results but fail to generate revenue.

At PhytestDX, lab billing is one of our core competencies. Our sister company, Phytest, specializes in billing for laboratory tests exclusively. Traditional medical billing companies and in-house billing teams are not equipped to handle:

• Payer-specific prior authorization requirements and windows for submission
• Coding, claim submission, and payer credentialing
• Managing appeals, denials, and reimbursement optimization
• Monitoring payment trends and identify payer-specific issues
• Medical record requests for certain CPT codes and DX codes

Our clean claim rate and deep knowledge in laboratory reimbursement come from over 27 years of experience in only billing for laboratory claims. By leveraging this powerful aspect in a long-term partnership with PhytestDX, we can help ensure you see the revenue you were promised.

Bringing Laboratory Testing In-House the Right Way Starts with the Right Partner

There are many ways to bring laboratory testing in-house. But there is only one right way—with a long-term partner who shares in your success.

PhytestDX is the only company that fully manages the end-to-end process, from clinical laboratory setup and laboratory set up requirements, to in-house asset management for labs and expert lab billing. We help you avoid costly missteps, save your team time, and build a new revenue stream that strengthens your practice for the long term.