How it Works

MCL is a new operational model that replaces the purchase of reference laboratory services with the opportunity to actually own a piece of the laboratory. A modest capital contribution establishes an ownership position. The not-for-profit hospital then becomes a co-tenant who actually owns and uses an undivided interest in the assets of the laboratory.


The governing body of the co-tenancy laboratory is called the “Administrative Committee,” and is made up of two representatives from each owner/user. One of these representatives must be a pathologist on the staff of the owner. When voting, the two representatives must agree on a position or their votes will be nullified. The number of votes allocated to each owner and user is determined by the same method as the allocation of testing costs. A co-tenant who incurs X% of testing costs will have X% of Administrative Committee votes. In other words, voting authority is directly proportional to utilization. Any health care system that owns two or more co-tenants may also appoint a “corporate member” to the Administrative Committee. This corporate member can not direct the votes of the subsidiary institutions, but can insure that the subsidiary institutions do not cast affirmative votes that violate the wishes of the corporate sponsor.