Brendan Keeler on Scan.com's $220M raise: a network is the most durable business in healthcare, and “the network label does not come for free.” Below are two thousand dots. Each one is a tenth of a percent of Medicare volume — lab on the left, imaging on the right. Give the same instruction to both: integrate the biggest players first.
Same budget. Same instruction. One of these is a network you can launch with.
Pharmacy got Surescripts. Imaging and labs did not, and the usual explanation is regulatory — e-prescribing had a mandate, planned care never did. True, and incomplete. The other half is a counting problem: a network only launches if a small number of endpoints holds enough volume that early coverage is worth paying for.
In Medicare lab, two companies clear that bar on their own. LabCorp and Quest entities occupy all five top slots, and the single largest NPI is 4.42% of every lab service in the program. Ten endpoints reach 22.3%; a hundred reach 52.6%. That is a launchable network, whether or not anyone launched one.
In imaging, the largest biller in the United States is 0.51%, and it is Symphony Diagnostic Services — a mobile x-ray company. Ten endpoints reach 1.08%. A hundred reach 3.03%. To touch half the volume you need roughly 10,800 separate integrations.
Reaching 80% of Medicare imaging volume takes about 28,700 endpoints. The same 80% in lab takes about 3,800. If your product depends on getting an outside image, there is no version of “partner with the majors” that gets you coverage — the majors are 3% of the market. Budget for the fax, the phone call and the CD-ROM on day one. Then ask the harder question: is retrieval a cost you absorb, or is retrieval the product?