TOP 100 MAGAZINE

Patty Sipes

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Patty Sipes is a distinguished leader in the healthcare sector with a remarkable career spanning 31 years, including 15 years in executive positions. As the CEO and founder of Esoteric Lab Consultants, LLC, Patty specializes in the business side of pathology and clinical labs.

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In today's challenging healthcare environment, characterized by numerous regulatory complexities, Patty’s expertise in reimbursement, managed care, and business strategy is invaluable. Her collaborative leadership style emphasizes innovation and employee development, leading to enhanced team performance and retention, even amidst uncertainty. Patty's proven ability to communicate effectively with stakeholders and navigate board dynamics allows her to align organizational goals with the strategic vision, driving initiatives that support mission objectives.

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Founded in 2010 and headquartered in Spokane, WA, Esoteric Lab Consultants, LLC provides national services with a mission to empower small and medium-sized pathology, specialty, and esoteric laboratories to grow their businesses efficiently.

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As a leader in the healthcare sector, Patty has a wealth of knowledge and insights to share. She spoke with us to discuss her experiences, the challenges faced by laboratories, and the strategies that drive success in this complex industry.

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Patty, what inspired you to start Esoteric Lab Consultants?

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The industry had a significant service gap in managed care contracting. New regulations required laboratories to secure contracts in every state they operated in, which was especially challenging for smaller specialty labs that lacked the resources to hire full-time staff for this purpose. Recognizing this gap, I saw an opportunity to step in and assist these labs by negotiating contracts on their behalf. As their needs grew, I expanded my services to provide comprehensive support, helping them navigate the complexities of the healthcare landscape more effectively.

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What makes your approach unique?

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Several key principles shape my approach and set it apart. 1) Culture Starts at the Top: Leaders must exemplify the behaviors they expect throughout their organization. I believe in leading by example and setting a standard for the entire team. 2) Embracing Talent: I’m not afraid of talented individuals. I hire great teams and surround myself with the best talent. This not only strengthens the organization but also fosters innovation and growth. 3) Ego-Free Leadership: My ego stays at the door. My job is to inspire others, support their journey, and help them succeed. Leadership is about empowering others, not about self-promotion. 4) Earning Respect: I believe in earning respect, not expecting it. Respect is built through consistent actions, integrity, and treating others with dignity. Lastly, Effective Delegation: I’m not afraid to delegate. No one can do everything alone. Delegating tasks is a sign of confidence in my team and an essential aspect of good time management. It allows everyone to contribute their strengths and ensures that we can achieve more together.

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What are a few common mistakes labs make that impact their profitability, and how do you help them address these?

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One major mistake labs make is neglecting managed care agreements and positive medical policies. Labs often underestimate their importance, assuming their product will be reimbursed at a high rate without these contracts. This assumption can severely impact profitability. I help labs understand the critical nature of these agreements and guide them in securing the necessary contracts to ensure proper reimbursement rates.

 

Another frequent issue is poor strategic planning for service locations. Labs are not always strategic about where they offer their services, overlooking the significant logistics costs that must be factored into their strategy. Without careful planning, they might incur unnecessary expenses. I assist labs in making informed decisions about their service locations, helping them optimize costs and enhance efficiency through strategic planning.

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Additionally, many labs rely on a small group of individuals to handle everything, making them vulnerable if a key person leaves. This dependency can be disastrous. I help labs develop the appropriate infrastructure and leadership, ensuring they have a robust system in place that maintains functionality and continuity even if someone departs.

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You’ve had an extraordinary career, Patty. Can you share a few particularly memorable or challenging projects you’ve worked on?

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I've been fortunate to work with many great teams and companies, and three projects come to mind as particularly memorable and challenging.

 

As chief commercial officer at Inform Diagnostics, I was recruited by the CEO to prepare the commercial sales organization for a successful exit. This was right after COVID, so I had to reignite infrastructure that hadn’t been utilized for two years, get it running smoothly, bring the team together, AND improve overall performance. I  contributed to due diligence activities and executive presentations. A  high-yield exit was achieved within one year.

 

As chief executive officer at Incyte Diagnostics, I achieved an A-to-Z implementation of a new company division on time and on budget. I utilized congressional contacts to navigate supply shortages and logistical hurdles successfully. We ended year two at an all-time revenue high. However, when COVID hit, our business, focused on cancer diagnostics, decreased by 70% in three weeks. We quickly adapted by adding COVID testing to our services, which allowed the lab to continue running, kept revenue coming in, preserved 300 jobs, and continued helping people.

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As senior vice president at PAML, I spearheaded the minority purchase of a $40M business, resulting in an annual NOI increase of $1M. Additionally, I worked closely with my colleagues to develop and deliver a pitch that secured the largest deal in the company’s history. I was responsible for all aspects of joint ventures, including prospecting, discovery, executive presentations, due diligence, and board presentations. These experiences were challenging but immensely rewarding, showcasing the importance of adaptability, strategic thinking, and strong leadership.

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To what do you attribute your success, Patty?

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I attribute my success largely to my leadership style. It's often said that women make great leaders and outstanding CEOs, and I believe my experiences reflect this. I've consistently earned significant loyalty from those I've worked with, which is a testament to the way I lead. Leadership isn’t always fun or glamorous; many times, it's outright stressful. However, I've loved every minute of it. True leadership requires dedication, resilience, and a genuine love for the role. It's this passion and commitment that have driven me to succeed throughout my career.

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Patty Sipes

CEO and Founder

Esoteric Lab Consultants, LLC

Website: www.esolabllc.com  

LinkedIn: https://www.linkedin.com/in/pattysipes