Mid-Year 2026 Update:
The Laboratory Industry Continues to Evolve

As we reach the midpoint of 2026, Nichols Management Group (NMG) is grateful for the trust and support of our clients, partners, and colleagues across the laboratory industry.

The first half of the year has been marked by meaningful progress on several strategic engagements. NMG has continued its work with Carilion Clinic and multiple initiatives with Rush University System for Health, while also extending our laboratory management services agreement with Pacific Diagnostic Laboratories (PDL)—a partnership we greatly value.

We are pleased to be entering the second half of the year with several new engagements underway. More than 50% of NMG's business comes from repeat clients, reflecting the long-term relationships we have built and our commitment to delivering practical, objective, and results-oriented guidance.

At the same time, the laboratory industry continues to undergo significant transformation. Artificial intelligence is rapidly moving from concept to implementation, particularly in pathology, digital image analysis, workflow optimization, operational decision support, and revenue cycle management. While AI will not replace laboratory professionals, it is poised to become a powerful tool that enhances productivity, quality, and decision-making throughout the laboratory enterprise.

Health systems are also re-evaluating their laboratory strategies. Discussions surrounding pathology alignment, outreach growth, automation, workforce challenges, laboratory consolidation, and alternative operating models remain active across the country. The sale of outreach and ambulatory laboratory services to national reference laboratories continues, but a growing number of health systems are also exploring opportunities to reclaim testing volume, strengthen regional laboratory networks, and create additional enterprise value through insourcing strategies.

NMG remains actively engaged in these developments through ongoing research, industry collaboration, conference participation, and the publication of white papers addressing emerging trends and strategic opportunities. Our focus remains helping health systems and laboratory leaders navigate a rapidly changing marketplace while positioning their organizations for long-term success.

Looking ahead, we remain optimistic about the future of laboratory medicine. Organizations that pursue scale, embrace innovation, invest in talent, and maintain a relentless focus on quality and service will be best positioned to thrive in the years ahead.

We appreciate the opportunity to work alongside so many outstanding healthcare organizations and look forward to continuing those partnerships throughout the remainder of 2026.

David Nichols
President & Founder
Nichols Management Group