How to Build a High-Performing Lab Revenue System: 10 Questions Every Lab Owner Must Ask

By Satish Malnaik, CEO & Co-Founder, NextServices. 

Whether you’re just starting your lab or scaling an existing one, these 10 questions can determine whether you grow profitably or bleed silently. In this candid interview, Satish Malnaik shares decades of insights from working with labs across the country — helping them recover lost revenue, automate operations, and scale confidently.

1. I want to start a lab, but I have no idea where to begin. What’s the first conversation I should be having?

There are many things to consider when starting a lab — business and technical. But what matters most now is where you invest your time and money over the next five years. If you wait, you’re already behind. Build with the right partners, tools, and a team that stays ahead of the curve.

2. What do “faster payments” and “fewer denials” really mean for a lab owner?

Faster payments mean reducing the time between test completion and reimbursement. Labs run on high upfront costs. Clean claims — those that are accurate, complete, and payer-compliant — are the key. Fewer denials stem from great front-end work: eligibility, accurate data, compliant coding. Denials kill cash flow.

3. What’s a mistake lab owners make that they don’t even realize — one that’s costing them hundreds of thousands of dollars?

Assuming billed equals paid. It doesn’t. Credentialing errors, out-of-network gaps, and poor follow-up silently destroy revenue. Labs also lose money by failing to collect clean data upfront — which leads to denials that go unresolved for months.

4. I’m focused on running the lab. Isn’t it the billing vendor’s job to alert me when money is being lost?

Yes. A good RCM partner should be your second set of eyes. They must monitor every dollar, flag issues, follow up on denials, and report clearly. Your job is running the lab. Their job is making sure you get paid.

5. What does “automated billing” really mean? And what does it actually do for me?

Automation replaces manual steps: verifying insurance, prepping claims, posting payments, rebilling. It runs 24/7 without fatigue. You get cleaner claims, faster processing, fewer errors, and less dependence on staffing.

6. What are the red flags I should watch for when choosing a billing company?

No transparency? Red flag. No real-time dashboards or reports? Red flag. Slow response times, vague updates, or a reliance on paper? Run. You need a partner that brings transparency, performance benchmarks, and real technology.

7. I already have an in-house billing team. Why should I consider NextServices?

In-house billing pulls focus and is often more expensive than it looks. At scale, we bring lower costs, better tools, automated processes, and a team focused solely on billing. You run the lab. We run the business of getting you paid.

8. Can you share a real story of a lab that went from struggling to thriving?

One lab came to us with hundreds of thousands stuck in denials. No tracking, no visibility. We audited every claim, recovered cash, fixed upstream issues, and prevented future errors. Within six months, they went from struggling to stable. No more borrowing to make payroll.

9. If I were sitting with you five years from now, what would I wish I had acted on today?

AI and automation. They’re not optional anymore. Labs that adopt now will lead. Those that delay will fall behind quickly. Modern tools mature fast. Invest in tech-forward partners before you’re forced to play catch-up.

10. I just found out I left $500,000 on the table. What would you tell me to do?

Ask one question: Why? Then fix it. Don’t delay. Don’t rely on the same people who missed it. Go deep into the root cause, recover what’s possible, and set up systems to prevent future losses. Band-Aids won’t cut it.

Ready to stop revenue loss and grow with confidence?