Procurement Market Intelligence Report
Medical Laboratory Services
Sourcing Guide & Market Intelligence
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Medical Laboratory Services Global Overview
Definition
Summary
These services include analytic or diagnostic services of specimens, including body fluids and tissue samples. Outsourced laboratories, such as commercial clinical laboratories, provide medical testing for buyers such as hospitals, clinics and nursing care facilities. Medical laboratories provide routine tests, such as blood and allergy tests, as well as nonroutine tests such as esoteric and gene-based tests.
This Report Includes:
- Allergy Tests
- Bacterial Cultures
- Basic & Comprehensive Metabolic Panels
- Complete Blood Count Panel
- Urinalysis
Not in this Report:
- Services for Veterinary Specimens
- Diagnostic Services by Medical Imaging
- Drug-Testing Services
- Specimen Holding Banks
Global Medical Laboratory Services Procurement Trends
Discover the top international trends affecting procurement in the global Medical Laboratory Services market.
Warning Trends
Public sector demand slumps as the government enters shutdown
- On October 1, the US federal government entered a shutdown after negotiations for a new appropriations bill failed.
- During a government shutdown, essential federal government operations, such as law enforcement, air-traffic control, and social security, persist, while nonessential operations are paused and workers involved in these operations are furloughed. Thus, the current shutdown is expected to result in 750,000 federal workers being furloughed, representing a $400 million reduction in daily expenditure by the federal government.
- This significant reduction in federal spending and operations will affect the entire US economy, weakening aggregate demand and slowing economic growth. For example, the 35-day government shutdown in Q1, 2019, reduced aggregate demand in both the public and private sectors, resulting in a 0.2% reduction in GDP growth that quarter.
- The effects of the shutdown are likely to be most acute in markets where the public sector is a major buyer segment, weakening demand and increasing average vendor risk by destabilizing important revenue streams.
- As negotiations for a new appropriations bill to reopen the government remain ongoing, ProcurementIQ will continue to monitor the situation and update this story with the latest information.
Global Medical Laboratory Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 China | 5,490 |
| #2 Europe | 4,470 |
| #3 United States | 3,900 |
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Geography Drilldown - US & Europe
Average Cost of Medical Laboratory Services
United States
2026 Market Pricing$1.00 to $XXX.XX
per requisitionEurope
Average Price
Prices in the Medical Laboratory Services market range from $1.00 to $XXX.XX, depending on Type of test, Location and Volume. For example, lower prices are associated with Allergy tests, Basic blood panels, COVID-19 tests and Urinalysis, whereas higher prices are associated with Esoteric tests, Gene-based tests and Cancer tests.
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Medical Laboratory Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Medical Laboratory Services market, prices in the US have grown 2.6% from 2022 to 2025. Meanwhile, the recent three-year CAGR for Europe is +0.7%.
United States (2022-2025)
Europe (2022-2025)
Compound Annual Growth Rate
Wondering where prices are heading?
Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Medical Laboratory Services
Total cost of ownership is Low in the Medical Laboratory Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Delays may raise the total cost of ownership unexpectedly.
Negotiated Before
Customization
Transportation
Billed During
Consumables
Unforeseen
Delays
Spoilage
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -1.5 in the United States. Buyer power is most positively impacted by Recent Developments. It is most negatively impacted by Recent Price Volatility. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Europe
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Computer & Packaged Software Wholesalers
- Chemical Wholesalers
- Laboratory Supply Wholesalers
- Courier Service Providers
2nd
Tier Suppliers
- Computer Manufacturers
- Organic Chemical Manufacturers
- Inorganic Chemical Manufacturers
- Glass Product Manufactures
- Gasoline Wholesalers
Biggest Medical Laboratory Services Suppliers in the US by Revenue
The largest Medical Laboratory Services vendors by revenue in the US are Laboratory Corporation Of America Holdings, ARUP and Lenco Diagnostics Laboratories Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Laboratory Corporation Of America Holdings | Global | BURLINGTON | >10,000 | 5-10 | ||||
| Quest Diagnostics Inc. | Global | SECAUCUS, NJ | >10,000 | 5-10 | ||||
| Roche Holding AG | Global | Basel, CH | >10,001 | < 5 | ||||
| Sonic Healthcare Limited | Global | Sydney, AU | >10,001 | < 5 | ||||
| ARUP | Global | London, UK | >10,000 | < 5 | ||||
| Lenco Diagnostics Laboratories Inc. | National | Brooklyn, NY | 101-250 | < 5 | ||||
| Myriad Genetics Inc. | International | SALT LAKE CITY | 1,001-10,000 | < 5 | ||||
| Opko Health, Inc. | Global | MIAMI, FL | 1,001-10,000 | < 5 | ||||
| Neogenomics Inc. | Global | Fort Myers | 1,001-10,000 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Medical Laboratory Services market is 14.1% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is stagnating, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Average vendor risk in the market is moderate as vendors face high competition and fast regulatory change, but have strong profit levels.
Market share concentration in the medical laboratory service market is moderate with the top four suppliers holding an estimated 30.0% of total market share.
Medical laboratories have sought to negotiate contracts with courier service providers to hedge against swings in fuel prices and ensure lower costs for buyers, as well as guarantee proper shipping and handling of sensitive packages, moderating supply chain risk.
The United States is a net exporter of laboratory reagents, which provides buyers with ample opportunity to source from domestic suppliers. Sourcing from domestic suppliers lowers the risk of supply chain disruptions, but it may not be as cost-effective as imports from lower-cost-of-living countries.
The United States is a net importer of laboratory glassware. While buyers have access to competitively priced foreign goods, importing from abroad may also leave buyers with greater exposure to foreign currency exchange risks and overseas supply chain issues.
Supplier Information
Laboratory Corporation Of America Holdings
LabCorp Holdings Inc. is a global provider of comprehensive clinical laboratory and end-to-end drug development services. It organizes its business into two segments: the Diagnostics segment, which offers a wide range of diagnostic tests, including, among others, blood chemistry analyses, urinalyses, blood... Subscribe to learn more
Quest Diagnostics Inc.
Quest Diagnostics Inc. is a public company operating globally in the healthcare and social assistance sector. The company's offerings include physical screening services, medical laboratory services and drug & alcohol screening services. Founded in 1967, the company is currently headquartered in SECAUCUS,... Subscribe to learn more
ARUP
Arup Group Limited is a private company operating globally in the professional, scientific & technical services and healthcare & social assistance sectors. The company's offerings include geotechnical engineering services, electrical engineering services and medical laboratory services. Founded in 1946, the... Subscribe to learn more
Enzo Biochem, Inc.
Enzo Biochem, Inc. is a public company operating internationally in the healthcare and social assistance sector. The company's offerings include medical laboratory services. Founded in 1976, the company is currently headquartered in FARMINGDALE, New York, United States of America with an estimated 465 employees.... Subscribe to learn more
Lenco Diagnostics Laboratories Inc.
Lenco Diagnostics Laboratories Inc. is a private company operating nationally in the healthcare & social assistance sector. The company's offerings include medical laboratory services. Founded in 2002, the company is currently headquartered in Brooklyn, New York, United States of America with an estimated... Subscribe to learn more
Myriad Genetics Inc.
Myriad Genetics, Inc. is a molecular diagnostic testing and precision medicine company that develops and commercializes molecular tests to assess disease or disease progression and guide treatment decisions across oncology, women's health, and pharmacogenomics. Its product portfolio includes MyRisk™ hereditary... Subscribe to learn more
Neogenomics Inc.
NeoGenomics, Inc. is a provider of oncology diagnostic testing and consultative services. Its testing services include cytogenetics, fluorescence in situ hybridization, flow cytometry, immunohistochemistry and digital imaging, molecular testing, and morphologic analysis. It also operates a network of cancer-focused... Subscribe to learn more
Opko Health, Inc.
OPKO Health, Inc. is a diversified healthcare company engaged in diagnostics and pharmaceutical businesses. It organizes its business into two reportable segments: the Diagnostics segment, which comprise the operations of BioReference, provider of laboratory testing solutions, including, but not limited to,... Subscribe to learn more
Roche Holding AG
Roche Holding AG is a public company operating globally in the healthcare & social assistance sector. The company's offerings include anticoagulants, anti-asthmatic drugs, antibiotics, antiviral drugs and medical laboratory services. Founded in 1896, the company is currently headquartered in Basel, Switzerland... Subscribe to learn more
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Procurement Management KPIs for the Medical Laboratory Services Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Customer Retention Rate and On-Time Completion %. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Uptime and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Customer Retention Rate |
|
Client turnover rate New sales Number of years servicing oldest client |
Suppliers with poor customer retention rates suggest that suppliers offer a low level of testing or customer services. Buyers should weigh factors that lead to customer retention rates by looking at client testimonials and reviews. |
| On-Time Completion % |
|
Number of tests delivered on-time Average service turnaround |
Suppliers with high on-time completion rates are more likely to have efficient processes to limit turnaround time. On-time completion rate can be used to predict the likelihood of delayed test results. |
|
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Quality Control
When demand for requisitions suddenly increases, how do you shift staff and facility usage to cover increased activity?
How do you retain quality staff? What proportion of your workers have a specialized degree?
Regulation
How have increased regulations affected your pricing? How will changing regulations affect pricing for the duration of the contract?
How does your company stay up to date with rapidly changing public health policies that may impact the market?
Legal Concerns
How often are your facilities inspected?
What is your safety record? How do you manage mishandled samples?
The ultimate prep for procurement negotations
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Medical Laboratory Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should provide a general overview of their organization, including facility type and size (e.g., hospital, clinic, or nursing care facility).
Buyers should provide information about their location(s) and number of sites.
Statement Of Need
Buyers should specify the desired types of medical laboratory tests, including both routine and nonroutine tests.
Buyers should provide detailed information about specimen pickup in regard to frequency, hours, and locations.
Project Budget
If one exists, buyers should specify their budget for the desired pharmacy automation systems and related products and services.
Vendors should submit separate price quotations for each lab test requested.
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We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
