[Newsletter] Laboratory Business Insights

The Road to 2027 Starts Now

Written by Jim O'Neill | Aug 7, 2026, 10:29:19 AM

Run a clinical laboratory? Visit our Laboratory Solutions page → to see how ADS supports labs like yours.

What I'd Be Looking at Right Now

For the past few months, laboratory leaders have been focused on one important date: July 31.

Your team gathered private payer data, met the PAMA reporting deadline, and checked an important milestone off the list.

Now it's time to look ahead.

I've spent more than 30 years working in laboratory information systems and financial operations, including running my own LIS company before joining Advanced Data Systems. During that time, I've worked with more than 500 laboratories across the United States and internationally.

That experience has taught me something important. The laboratories that perform best don't spend their time worrying about what they can't control.  They focus on the things they can.

Whether Congress ultimately passes the RESULTS Act or the current reimbursement schedule moves forward, the laboratories that thrive in 2027 will be the ones that prepare today.

That's why I believe the next five months represent an opportunity, not a setback.

 

What I'm Watching

There has been encouraging momentum surrounding the RESULTS Act, legislation designed to improve how Medicare determines Clinical Laboratory Fee Schedule reimbursement.

If passed, the legislation would create a more representative reimbursement model by using broader commercial payer data, reduce future annual payment reductions from 15% to 5%, and provide laboratories with greater financial stability.

Will it pass? No one knows.

Rather than waiting on Washington, I encourage laboratories to focus on strengthening the parts of their business they can control today. That's where you'll see the greatest return.

At the same time, molecular diagnostics continues to be one of the fastest-growing areas of laboratory medicine. Demand remains strong, and laboratories with efficient operations and disciplined revenue cycle management are well positioned for continued growth.

 

Preparing for 2027 Starts Today

Whether you're reviewing reimbursement trends, evaluating operational efficiency, or planning technology investments, the right partner can make all the difference.


Learn how ADS helps independent laboratories improve financial performance and operational efficiency. Laboratory Billing Software

 

The Calendar I'd Keep

  • September 2026 — CMS releases proposed CY 2027 payment determinations.
  • September 15–16 — CMS Public Meeting for codes without reported private payer data.
  • November 2026 — Final CY 2027 payment determinations released.
  • January 1, 2027 — New Clinical Laboratory Fee Schedule reimbursement rates become effective.


Regardless of what Congress decides, the preparation remains the same. And that's probably the most valuable thing I can share this month.

 

Three Things I'd Do Before January

1. Recover Revenue You're Already Earning

One of the biggest surprises I see when working with laboratories is how much revenue is already sitting on the table.

  • Denied claims
  • Underpayments
  • Coding issues
  • Aging accounts receivable

Collectively, these often cost laboratories more than future reimbursement changes.

The good news? That revenue is recoverable.

Is Revenue Slipping Through the Cracks? Our Revenue Cycle Management specialists help independent laboratories reduce denials, improve collections, and strengthen financial performance. Learn more about ADS Revenue Cycle Management

 

2. Understand Your Financial Exposure

Take your highest-volume Medicare laboratory tests and model what your organization would look like under a potential reimbursement reduction.

Knowing those numbers today makes budgeting, staffing, technology planning, and payer discussions much easier tomorrow. Preparation always beats reaction.

 

3. Make Sure Your Billing Supports Your Specialty

Independent laboratories have become increasingly specialized.

  • Molecular diagnostics
  • Toxicology
  • Pathology
  • Genetic testing

Each specialty comes with unique billing rules, payer edits, and documentation requirements.

Your billing platform and revenue cycle processes should reflect those differences.

When technology and billing workflows align with your specialty, laboratories spend less time appealing denials and more time focusing on patient care.

Technology Should Support Your Growth From molecular diagnostics and toxicology to pathology and specialty testing, ADS Laboratory Billing Software is designed specifically to help laboratories improve workflow, streamline billing, and strengthen financial performance. Learn more about Laboratory Billing Software

 

Partnership Matters

One of the reasons I joined Advanced Data Systems is because I've always believed laboratories deserve more than a software vendor. They deserve a partner.

For nearly 50 years, ADS has helped healthcare organizations navigate changing regulations, reimbursement models, and technology. Just as importantly, we've built relationships throughout the laboratory industry.

If your laboratory needs expertise beyond our software or revenue cycle management services, we'll help connect you with trusted consultants, operational experts, and industry partners.

Helping laboratories succeed has always been more important than simply selling software. That's what partnership means to us.

 

More Than Software. More Than Billing.

Whether you're looking to modernize your billing technology, improve collections, reduce denials, or strengthen operational performance, ADS is committed to helping laboratories succeed.

📌 Laboratory Billing Software

📌 Revenue Cycle Management

 

The Road to 2027 Starts Today

The July 31 reporting deadline is behind us. The opportunity to strengthen your laboratory begins today. The laboratories that succeed in 2027 won't necessarily be the ones with the fewest reimbursement challenges.

They'll be the ones that use the months ahead to improve operations, recover hidden revenue, embrace technology, and build partnerships that support long-term growth.

That's exactly what Advanced Data Systems has been helping healthcare organizations do since 1977.

 

Complimentary Laboratory Performance Review

Before 2027 arrives, let's identify the opportunities already inside your laboratory.


Our laboratory specialists will review:

  • Revenue Cycle Performance
  • Denial Trends
  • Recoverable Revenue Opportunities
  • Billing Workflow
  • Molecular & Toxicology Billing
  • High-Risk CPT Codes
  • Specialty-Specific Payer Rules
  • Operational Efficiency


No obligation. No pressure.


Just practical recommendations from a team that has been partnering with healthcare organizations for nearly 50 years.

Request Your Complimentary Laboratory Performance Review

Next Month in The Road to 2027

CMS is expected to release its proposed CY 2027 payment determinations.

I'll break down what the proposed reimbursement updates mean for independent laboratories, review molecular and PLA code recommendations, and share practical strategies laboratories can implement before final payment rates are announced.