Tom Gallo is Proscia’s Chief Financial Officer. Arun Ananth is the company’s Chief Commercial Officer.
For years, AI-driven pathology has promised to deliver top- and bottom-line impact for diagnostic laboratories, but its initial economic value has come from gains in efficiency and throughput. These benefits deliver early wins, helping laboratories stabilize margins, recover some of the costs of going digital, and lay the groundwork for significantly greater returns.
Now, as clinical adoption of digital pathology begins to catch up with its earlier momentum in the life sciences, laboratories are stepping into a new phase of economic opportunity. With a digital foundation in place, they’re beginning to unlock high-margin revenue streams by stepping into a broader role as partners in the precision medicine ecosystem.
Efficiency That Justifies AI-Driven Pathology
For many laboratories, operational improvements are the first and most tangible proof points that justify the investment. Not only are they the easiest to achieve, but they also directly address the top concerns of today’s laboratory leaders: staffing shortages and reimbursement pressures, according to a recent survey of 360 respondents.
- Reading more cases, faster: By automating manual tasks like case triage and quality checks, laboratories can significantly increase pathologist throughput. A study conducted by Quest Diagnostics showed that pathologists could read prostate cases 2.4x more efficiently using AI-driven workflows—an improvement that could translate into several hundred thousand dollars in additional annual revenue per pathologist, even with conservative reimbursement rates.
- Eliminating slide logistics: Going digital removes the need to ship glass slides, cutting recurring costs, reducing delays, and minimizing the risk of loss or damage.
- Improving staff utilization: Digital workflows help laboratories route cases more efficiently, make better use of subspecialists, and avoid the high costs of outsourcing.
- Offsetting hiring challenges: Digital pathology helps laboratories do more with their current teams, reducing dependence on hard-to-fill roles, avoiding contract staffing costs, and improving long-term workforce sustainability. A digital-first environment also helps attract top talent by signaling innovation and offering greater flexibility.
These aren’t just workflow improvements. They’re early financial returns that begin to validate the investment in digital pathology and pave the way for longer-term economic value.
Powering The Laboratory’s Growth Engine: Our Diagnostic Network
At Proscia, we’ve long recognized that the economic opportunity runs deeper. From our earliest days, we saw firsthand that pharmaceutical companies faced mounting pressure to accelerate the introduction of new therapies. One persistent constraint across discovery, development, and commercialization? Limited access to the high-quality pathology data and eligible patients that diagnostic laboratories can provide.
This is one of the many reasons why we built our Concentriq platform to help both diagnostic laboratories and life sciences organizations go digital. And we brought them more closely together when we formally established our diagnostic network with the launch of our biopharma partnership and real-world data (RWD) offering in September 2024.
Laboratories participating in the network have already generated millions of dollars in high-margin revenue by collaborating with biopharma companies in the following ways:
- Monetizing their Real-World Data: Proscia’s diagnostic network collectively offers over 12 million whole slide images from 2 million unique patients, enhanced with pathology reports, molecular profiles, and genomic data. This aggregated dataset enables laboratories to generate recurring revenue by licensing de-identified data to the organizations developing the next novel therapies and diagnostics.
- Serving as an AI Testbed for Real-World Evidence Generation: Participating laboratories serve as real-world evidence generators where AI developers and pharmaceutical companies evaluate the clinical utility of new applications. This supports regulatory submissions, commercialization efforts, and industry adoption, while creating new services revenue for laboratories.
- Expanding their Pharmaceutical Services: With digital infrastructure in place, laboratories can offer a wider portfolio of pharma-aligned services—from biomarker discovery and clinical trial support to companion diagnostic development—without having to build new systems from scratch. These offerings enable laboratories to further diversify their revenue streams and strengthen long-term partnerships with life sciences organizations seeking high-quality, pathology-driven insights.
Redefining the Value of Digitization
For too long, the value of diagnostic laboratories has been measured by cost containment and case volume. That equation is changing. AI-driven pathology is transforming the laboratory from a cost center into a growth driver. Laboratories that go digital are not only improving efficiency—they’re expanding their role in the precision medicine ecosystem, redefining what it means to unlock clinical and economic value.
This shift isn’t theoretical. It’s happening now. And the laboratories that act with urgency will be the ones that lead, not just in operations, but in innovation, partnerships, and profitability.
Want to learn more about joining Proscia’s diagnostic network? Let’s start a conversation.
