Genetic Cytogenetics Laboratory Services Agreement

Genetic Cytogenetics Laboratory Services Agreement

Executive Summary

January 2017

University Medical Center of El Paso recommends entering into a three year agreement with Texas Tech School of Medicine, Department of Pediatrics, Lubbock, Texas, for genetic testing.

UMC of El Paso has over seven years of experience with Texas Tech in this area of testing. The service provided has and continues to be excellent. The communication between the Texas Tech Genetic Laboratory and the UMC ordering Physicians is timely and informative. In the past a cancer diagnosis was based on the presence of cancer cells as well as the location of the tumor(s). The standard of care now involves an accurate classification for the type of cancer derived from this reading. This cancer classification directly relates to the appropriate chemotherapeutic treatment plan recommended by the patients’ provider. Other patient populations that benefit from this genetic testing are the prenatal population as well some neurological disorders which are genetically inherited.

This agreement involves the interpretation of this testing by a Board Certified Genetics Ph.D. Dr. Vijay Tonk. The Texas Tech Genetic Laboratory is located within the Department of Pediatrics in Lubbock and covers testing for both adults and children. The agreement covers Dr. Tonks availability 24/7 to all health care providers and UMC Lab for genetic counseling.

The Laboratory Director did a cost review for sample testing to compare the Texas Tech Genetic Laboratory testing against a Med Asset vendor, Quest Laboratory to assure reasonable pricing against the market. The UMC cost was an average of forty percent less with Texas Tech. UMC Laboratory sends out approximately fifteen patients a month or 180 patients per year for genetic testing typically from the Inpatient Oncology Unit.

The demand for genetic testing has increased as it has become the standard of care in medicine when the FDA approved additional markers over six months ago that help identify where the genetic error is in the gene. In Fiscal Year 2016 the total cost increased to $123,500 from the previous years $90,000.

UMC is recommending an agreement not to exceed $140,000 per year beginning March 1, 2017 and ending February 28, 2020. We are also seeking the Chief Executive Officer to negotiate and execute the agreement with the Texas Tech Genetic Laboratory.