Medical & Imaging Labs
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 7,200 medical and imaging labs in the US perform analytical and diagnostic services for patients and health care providers. Medical labs provide a variety of testing services, including routine clinical, anatomic pathology, genetic, and esoteric tests. Other types of testing include drug use, risk assessment for life insurance, and dental. Imaging labs provide diagnostic procedures, including x-rays; MRI, CT and PET scans; ultrasound; mammography; nuclear medicine; and fluoroscopy.
Competition from Health Care Providers and Academia
Medical and imaging labs compete with hospitals, clinics, physicians, and universities for services.
Complying With Government Regulation
Medical and imaging labs must be licensed and must adhere to federal and state government regulations which establish technical, operational, personnel and quality requirements.
Industry size & Structure
A typical medical lab operates out of single location, employs 63 workers, and generates about $11 million annually. A typical imaging lab operates out of a single location, employs about 17 workers, and generates about $4.5 million annually.
- The medical lab industry consists of about 7,200 companies, employs 320,000 workers, and generates about $72 billion annually.
- Large medical labs include Laboratory Corporation of America, Quest Diagnostics, and Sonic Healthcare. Large imaging labs include RadNet, Imaging Healthcare Specialists, and Intrinsic Imaging.
Industry Forecast
Medical & Imaging Labs Industry Growth
Recent Developments
Mar 19, 2024 - Prices Increase
- Medical and imaging labs increased their prices slightly during 2023, according to the US Bureau of Labor Statistics (BLS). Industry employment increased slightly during 2023 while wages for nonsupervisory employees increased significantly, according to the BLS.
- The US Department of Justice, the Federal Trade Commission, and the US Department of Health and Human Services said in early March that they are investigating how certain transactions in the healthcare sector may increase consolidation and boost corporate profits at the expense of patient health, worker safety, quality of care, and affordability. The agencies have issued a request for information, seeking public comment on deals conducted by health systems, private payers, private equity funds, and other alternative asset managers that involve healthcare providers, facilities, or ancillary products or services. Research shows the competition in healthcare provider and payer markets leads to higher-quality and lower-cost healthcare, as well as greater access to care and higher wages and benefits for workers, agency officials said.
- North American healthcare sector private equity (PE) deal values totaled about $29 billion in 2023, according to Bain & Company. Activity in provider businesses have historically comprised a large share of US deals but PE interest in related industries such as medical and imaging labs has increased. Biopharma accounted for 25% of deal activity and 54% of deal value in 2023. North America retained its position as the region with the highest value of healthcare deals.
- More entities are charging extra hospital-type fees as hospitals buy up doctors offices and imaging centers, according to U.S. PIRG. Facility fees are charges that are supposed to support the added cost of hospitals (like running an ICU or having more bedside nurses). Regular doctor offices and imaging centers don’t have those added costs, so charging patients a facility fee is unjustified, according to U.S. PIRG. Patients don’t usually know about facility fees until after they get the medical bill. Insurance generally doesn’t cover facility fees when care is provided outside of a hospital.
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