Why Bring Liquid Biopsy Testing In-House? The Case for Millions in Cost Savings

We recently conducted a cost savings analysis for healthcare organizations interested in bringing liquid biopsy testing in-house. We discovered that, compared to outsourcing, in-house liquid biopsy testing with an actionable circulating tumor DNA (ctDNA) panel would enable healthcare organizations to attain substantial cost savings — $2.7M per 1,000 cancer patients.

In-house testing with an actionable panel also delivers comparable patient benefits as outsourcing to a comprehensive ctDNA test provider, at a significantly lower cost. 

It may seem obvious, but why does this matter?

First, for cancer patients with metastatic or advanced disease, personalized treatment with targeted therapy is 2-3 times more effective than standard chemotherapy. Matching patients to targeted therapy requires biomarker testing, which typically involves sequencing tumor DNA derived from biopsy material. 

An ever-increasing number of targeted cancer therapies is becoming available, leading to the need for widespread genomic biomarker testing. To date, the US Food and Drug Administration has approved more than 100 targeted cancer therapies. Yet, studies have shown that only a small percentage of cancer patients receive recommended biomarker testing. For example, only 8-12% of lung cancer patients in the US receive testing for all National Comprehensive Cancer Network recommended biomarkers. 

Second, to further compound the problem, because of outsourcing the turnaround time for more than 60% of tests for all recommended biomarkers takes longer than the recommended time frame, delaying treatment for patients who do not have time on their side. All eligible cancer patients should have access to testing that can expedite treatment decisions. Bringing ctDNA testing in-house is one way to ensure access is equitable within a meaningful time frame.

Finally, a cost-saving of $2.7M per 1,000 patients is especially meaningful for healthcare organizations with value-based reimbursement models. In their August 2020 analysis, “The Math of ACOs,” McKinsey reported that between 2012 and 2018, the average earned shared savings for accountable care organizations in the Medicare Shared Savings Program were between $1.0M and $1.6M per organization (between $10 and $100 per beneficiary). 

Bringing ctDNA testing in-house, therefore, presents a substantial opportunity for healthcare organizations to deliver more cost-effective care while improving patient outcomes.

Canexia Health is enabling healthcare organizations and laboratories to deliver ctDNA testing-house via our technology transfer model. To learn about how your organization can save $2.7M on genomic testing, view the infographic below and contact bd@imagiacanexiahealth.com.

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