Creating New Value from Laboratory Testing and Services in Value-Based Healthcare: Investigating Data Monetization Strategies from Clinical Laboratories

Abstract

In the U.S. healthcare system, much effort is being spent to decrease healthcare costs while improving patient outcomes and improving the health of the entire population. This transition from a fee-for-service payment model to one that allows for pay-for-performance (generally referred to as Value-based payment) has been gradual but is largely recognized as a key component and strategy for the American Healthcare system. Different stakeholders in the healthcare industry are transforming their identities, organizations as well as their services to compete in the changing healthcare market.

The clinical laboratory is not usually considered a key contributor in value-based healthcare (VBHC) models, yet it is well situated to contribute in meaningful ways due to the nature of laboratory testing, the digitally native environment in which modern labs operate, and the growing acceptance of at-home testing. This thesis investigates how clinical laboratories are creating new value in the VBHC healthcare market using data-enabled, digital strategic initiatives while also validating the applicability of data monetization frameworks developed from the MIT Center for Information Systems Research (CISR). Four real-world examples of laboratory services created to support value-based care were collected through interviews with leaders of their respective laboratory companies. After analysis, all four examples were clear cases of data monetization, with the framework highlighting key factors that helped each laboratory to generate new value from their data assets. Some key factors included leadership support, an understanding of how clients create and capture value in value-based arrangements and personnel to translate laboratory data into actionable information that supports the value-based healthcare initiatives of their clients.