A Smarter Path to Lab Transformation; Without Selling the Lab
Transform Your Lab Without Outsourcing
Health systems are under increasing pressure to improve efficiency, reduce operational complexity, and strengthen financial performance.
For many organizations, the laboratory sits at the center of those challenges. Traditionally, health systems have faced two choices: maintain the status quo or outsource the laboratory entirely.
But there is a third option; one that modernizes laboratory operations while allowing health systems to retain ownership, governance, and strategic alignment while also accelerating outpatient growth.
Health systems can transform laboratory operations, accelerate outpatient growth, and improve performance without giving up ownership, governance, or strategic influence.
The Limits of the Traditional Model
Many health systems still operate laboratories independently across multiple sites, each with their own workflows, staffing models, and operational processes.
Over time, this creates inefficiencies, administrative burden, added costs, and inconsistent performance. At the same time, laboratory strategy is often managed within broader health system structures that are not designed to provide dedicated laboratory expertise or a focused approach to growing outpatient services.
The result is an essential service line that becomes increasingly difficult to optimize, scale, or leverage as a strategic growth engine.
The Trade-Offs of Outsourcing
To reduce operational burden, some health systems choose to sell or outsource laboratory operations. While this may provide short-term financial relief, it can also limit long-term flexibility, control, and participation in one of healthcare's most significant growth opportunities: outpatient laboratory services.
According to an analysis of more than 3,000 hospitals, health systems that relinquished control of their laboratories experienced lower net patient revenue growth compared to those that retained ownership (Mayo Clinic Laboratories, 2025).
The same analysis found that hospitals that outsourced laboratory operations experienced longer average lengths of stay, impacting both cost and patient throughput (Mayo Clinic Laboratories, 2025).
Perhaps most importantly, many outsourcing arrangements shift future outpatient testing growth away from the health system, limiting long-term revenue potential and reducing strategic influence over an expanding market.
A Third Path: Transform the Model
Instead of maintaining outdated structures or exiting laboratory operations entirely, health systems can adopt a partnership model that preserves strategic influence while unlocking new opportunities for growth and value creation.
At HNL Lab Medicine, we've built a partner-driven approach designed to improve operational performance while preserving alignment with the health system's mission and goals. Beyond operational excellence, the model is supported by a comprehensive outpatient market strategy refined over more than 28 years of helping health systems grow laboratory services in their communities.
- Retain a stake in the laboratory
- Participate in governance
- Maintain strategic alignment across clinical and operational priorities
- Leverage a proven outpatient growth strategy supported by 28 years of market experience
- Expand physician relationships, patient access, and outreach opportunities
Rather than functioning as separate sites, the laboratory operates as a coordinated system with standardized processes, centralized expertise, and shared operational support.
This includes:
- Standardized quality and validation practices
- Coordinated staffing and workflow strategies
- Centralized purchasing and financial oversight
- Consistent clinical standards across locations
- Dedicated business development and outpatient market expansion
The goal is simple: improve performance, grow outpatient laboratory services, and strengthen long-term value without giving up ownership or strategic influence.
Built for Real-World Health Systems
One of the biggest barriers to transformation is execution. This model is not theoretical; it has been implemented across multiple laboratory environments and refined through nearly three decades of operational and market experience.
For health systems, that means:
- A proven operational framework supported by more than 28 years of experience
- A mature outpatient market strategy with established processes for sustainable growth
- Access to dedicated laboratory and business development expertise
- Reduced implementation risk
- Faster time to value
By combining shared governance, operational excellence, and a proven approach to outpatient market development, health systems can improve efficiency, strengthen workforce flexibility, expand market share, and unlock new opportunities for growth; without outsourcing a critical service line.
A Different Way Forward
Health systems no longer have to choose between managing increasing complexity alone or giving up control of the laboratory entirely.
A partner-driven model offers another path; one that modernizes operations, accelerates outpatient growth, strengthens financial performance, and preserves long-term strategic alignment. This is more than a new way to run the lab. It's a smarter way to unlock its full value.
Explore a Third Path for Your Lab Strategy
HNL Lab Medicine's partnership model provides a scalable alternative to maintaining the status quo or outsourcing laboratory operations. Backed by more than 28 years of laboratory and outpatient market expertise, our team helps health systems transform laboratory operations while building a stronger foundation for long-term growth. Connect with our team to learn how this approach can support your health system goals.