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New Laboratory Network Selects Change Healthcare for Revenue Cycle Management
[May 19, 2017]

New Laboratory Network Selects Change Healthcare for Revenue Cycle Management

Atlanta-based LabPharm Hospital Management Services (HMS) has contracted with Change Healthcare for comprehensive revenue cycle management services in support of a national network of hospitals and independent laboratories.

LabPharm HMS, a division of LabPharm LLC, is launching an outreach laboratory alliance that will enable independent labs to partner with health systems to provide a full range of in-network diagnostic and esoteric tests for commercially-insured patients. The lab partnerships will be customized to address the requirements and capabilities of each party. They will be managed and administered by LabPharm HMS, which has developed proprietary software that facilitates integrated ordering and results-sharing between the organizations. Change Healthcare will manage the revenue cycle for LabPharm HMS alliance participants.

Jeff Solomon, chief legal officer of LabPharm, said that given the size, scope and complexity of the LabPharm network, LabPharm believed Change Healthcare was the best equipped to meet the needs of the new and growing enterprise.

"Change Healthcare was selected on the strength of its experience in laboratory billing and its national presence," Solomon said. "Aligning with Change Healthcare will help ensure that tests are billed appropriately and that reimbursements are accurate. We are excited about working with its experts to construct a srong financial base for our new network."

LabPharm LLC, the parent organization to LabPharm HMS, provides a range of consulting, practice management, and purchasing services to approximately 200 independent community labs nationwide. Through the LabPharm HMS network, the labs will have an opportunity to align with major health systems to provide shared testing services at the community level. Solomon said LabPharm HMS currently is negotiating with an additional 20 health systems nationwide to bring them into the alliance.

He said the new network is expected to generate benefits for all parties involved. Patients will be able to rely on local community laboratories for esoteric and routine testing, and they will not face balance billing issues that can increase their out-of-pocket costs and sometimes make these services cost-prohibitive. Labs will strengthen their competitive position by being able to offer a full spectrum of testing services, thereby improving patient care, while ideally increasing cash flow with in-network reimbursement rates. Participating hospitals and health systems can generate incremental revenue by maximizing their lab operations to take advantage of excess capacity while simultaneously accessing a potential new source for patients.

Pat Leonard, president, Technology Enabled Services, Change Healthcare, said LabPharm HMS' alliance is a unique mechanism for aligning organizations to produce better outcomes for patients. "We are enthusiastic about working with LabPharm HMS to support this collaboration," Leonard said. "The approach represents a new model for the provision of lab services that can help patients, labs, and hospitals. Creative solutions like this will become increasingly essential as healthcare continues to evolve."

About LabPharm LLC

LabPharm is one of the nation's leading ancillary service companies offering clinical continuum of care with a focus on maximizing quality outcomes while lowering the cost of treatment. LabPharm understands the business of medicine and is established to service physicians and their practices by providing the resources they need to walk patients through their medical journey. The LabPharm mission is to partner its ancillary services with physicians to provide a higher quality of care, increase patient safety, and to lower the cost of treatment. For more information, visit:

About Change Healthcare

On March 2, 2017, Change Healthcare and McKesson announced the closing of their transaction to form a new healthcare technology company. The new company is called Change Healthcare, and the former McKesson Business Performance Services is now known as Technology Enabled Services.

Change Healthcare is inspiring a better healthcare system. Working alongside our customers and partners, we leverage our software and analytics, network solutions, and technology-enabled services to help them improve efficiency, reduce costs, increase cash flow, and more effectively manage complex workflows. Together, we are accelerating the journey toward improved lives and healthier communities. Learn more at

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