2013 Trends
In Drug Testing
15th Annual Industry
Survey
CONDUCTED BY:
BILL CURRENT
StateDrugTestingLaws.com
bill@billcurrent.com
954-255-8650
Thanks to our
2013 Survey Sponsors…
2013 Survey of
Drug Testing Industry Trends
 The 2013 Survey of Drug Testing
Industry Trends is copyrighted by WFC &
Associates.
 These slides may be found at
StateDrugTestingLaws.com.
 For additional information please contact
Bill Current at 954-255-8650 or email at
bill@billcurrent.com
2013 Survey of
Drug Testing Industry Trends
 Panel of drug testing experts
 16-question survey conducted by one-on-one
interviews and via email responses
 Plus one bonus question
 Brand-name recognition rankings
 Results were summarized by verbatim responses
2013 Survey of
Drug Testing Industry Trends
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Allison Thierry-Hunt, Allied Safety Health
Bob McCormick, Quest Diagnostics
Chris Williams, ARCpoint
Colin Woods, DISA
Darrin Schmidt, PAML
David Eades, Sterling
Dennis Bennett, EDPM
Eric Quilter, Compliance Information Services
Gina Kesler, D&A Experts
Greg Capps, ScreenHubb
Heidi Seaton, Orange Tree Employment Screening
Jesse Berger, Pinkerton
2013 Survey of
Drug Testing Industry Trends
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Joe Whelan, DSI Medical Services
Judy Swartley, Red Planet
Laurie Jantz, OraSure Technologies
Lynn Carr, FirstLab
Lynn Ward, University Services
Mary Rush, Professional Drug Screening Services
Mickey Moore, Employee Screening Svc. of Missouri
Nina French, FirstAdvantage
Sandra Serrano, ASAP
Todd Bailey, Premier Biotech
Todd Shoulberg, ClearStar
2013 Survey Format
This presentation will be presented in five
parts:
1. State of the Industry
2. Trends in Drug Testing
3. Brand-Name Recognition
4. Concerns & Predictions
5. Bonus Question: What impact will legal
marijuana have on the drug testing
industry?
Hot Issues
 HHS Guidelines for Lab-Based Oral Fluid
Testing
 Synthetic Drugs (K2, Spice, etc.)
 Legalization of Marijuana
 On-going Consolidation
Section 1:
State of the Industry
State of the Industry
Drug Testing Sales
Background Screening Sales
Non-Workplace Markets
State of the Industry
 Some of our occupational health clients have scaled back due
to the economy. We have also added clients, so we are
about even with the previous year.
 Growing at same rate as economy about 2%...
 Substantially up… largest year of growth curve… sales are up
across the board.
 Drug testing sales are up, not as much as usual… up 9%.
 Excellent for us. Very, very good. Testing through first 6
months is up over 15%. Revenue is up over 19%.
 Having a really, really good year.
 Client for client, up, absolutely
Drug Testing Sales
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Sales are up, about 30%
Up, just under 20%
Up, approx. 10%
Up 11%
Sales are up approximately 25%
Up by 20%
Up, by approximately 10-15%
Up- 14%
Up… significant increase… current clients are up 15-20%
over same period last year
 Our current clients are up 20%; across the board we’re up
20%... our company is up more than that 20%
Background Check Sales
 Fairly stable…
 Steady… background screening always seem to be
last consideration in the screening process
 Doesn't seem to rise to one-stop shop concept; client
may have had a long-time relationship with a provider
that they stick with… it’s a very small piece of our
business model
 We have decided to no longer provide background
checks and instead focus entire energy and attention
on drug and alcohol testing, training and program
administration
Background Check Sales
 Up just like drug testing… more people do background
checks than drug testing
 Huge untapped market… amazing how much
marketing you can do and not run up against
competition
 Marginally up
 Sales are up… doubled since last year.
 Up, just over 20%
 Up, approximately 10%
 Sales are up approximately 25%
Non-Workplace Markets
 Primary care offices, tests requested by parents of
teens… largely due to K2, prescription drugs, etc.
 Get more requests for physicals
 Interesting to see what Cotinine does with the ACA…
 Seeing a renaissance in student testing… maybe all
the press with PEDs, the funding is there, too
 Pain management growing very rapidly, seeing double
digit growth… criminal justice seems to be opening up,
higher volume
 More drug driving cases requiring testing, more
lawyers seeking help for their clients as part of their
penance
Section 2:
Trends in Drug Testing
K2/Spice, Bath Salts
POCT/On-Site Testing
Oral Fluid Testing
Hair Testing
Drug Test Prices
Collection Prices
K2-Spice/Bath Salts
While some said these drugs are here to stay,
many said the obstacles to sales are significant,
including:
 Tests are expensive
 Window of detection is too short
 Labs only test for a small number of the many
chemical compounds
 The high might be over?
POCT/On-Site Testing
 Continued growth
 Increasing as employers do not want to delay in hiring
 More employers are looking for collection alternatives
as a way to save money
 A little more; throwing it out there a little more and it's
sticking
 Big piece of our model… 65-70%, but it’s pretty flat…
 Urine… not so much oral fluid
 Don't see much of a trend either way. Not actively
trying to sell it
 The vast majority of our clients continue to require labbased testing
POCT: On-Site vs.
Collection Site
 More and more drugs become available on a
product… doing 15 panels on a cup
 My clients are 85% at clinic/collection site, 15%
at the workplace
 80% at the collection site and 20% at the
worksite
 About 60% are being done at worksite. Most
bringing collectors out.
 60% at collection site (urine), 40% onsite at
place of work (saliva)
POCT/On-Site Testing
 Staffing
 Construction
 Corrections/Criminal Justice
 Trending up… more and more drugs become
available on a product… doing 15 panels on a
cup
Oral Fluid Testing
 Seen good growth in it… customers that use it are in
growth industries… seen some large customers
wanting to pilot it
 Little upward swing… simplest and least invasive
process… if an employer is willing to bring it in-house
that would work
 Much educating to do. Employers aren’t
knowledgeable and tend to stick with what they know
 We receive a lot of inquiries, but not a lot of switches
from lab-based urine testing.
 Have a couple of accounts that do a lot… one account
80,000 this year
Oral Fluid Testing
 Only going up… especially with the new marijuana
regulations/laws
 No movement. Seeing more increase in hair testing
than oral fluid testing. Surprising to me. Thought oral
fluid would take off more than hair testing
 Virtually everyone agrees that the SAMHSA regs and
eventual DOT adoption will make a significant
difference in favor of lab-based oral fluid testing
Hair Testing
Most said it is either steady or up this year:
 Clearly going up… driven by trucking companies…
haven't seen a customer go from urine to hair, not like
urine to oral fluids
 Still a select market, not a bad place to be… but limited
market product, most consider it just a pre-employment
test… only a few labs are out in front… trucking, oil &
gas… seeing upward trend on hair testing
 Obviously, there's a place for it. If really interested in
culling out potential drug users it's certainly worth the
money.
Drug Test Prices
While some said prices are going up, most said they are
coming down:
 XYZ is aggressively lowering prices, but they don't
need to go as low as they go…
 For most part, prices are static… there’s a reluctance
to raise prices
 Pressures in the vendor chain to raise prices… hard to
push price increases on TPA and MROs… margins are
so tight for TPAs and MROs
Collection Prices
Most said they’re going up:
 Every year collection sites are trying to inch their prices
up… same trend as always. Get a love note from XYZ
Company.
 Average for non-PSC collection $16-$17… in remote
areas it starts in 20s… PSC for urine $10
 Average price for urine collection between $16-17 for
third party… XYZ Company is higher, move to push
everything over $20… ND, oil & gas areas over $20
Section 3:
Brand Name Recognition
Laboratory Urine Testing
Laboratory Oral Fluid Testing
POCT/On-Site Oral Fluid
POCT/On-Site Urine
Hair Testing Lab
Collection Services
Laboratories
Company
Points
1. Quest
2. LabCorp
3. Alere
3. MedTox
5. CRL
111
77
31
22
20
# of 1st
Mentions
28
9
2
0
4
# of 2nd
Mentions
12
22
5
6
1
# of 3rd
Mentions
3
6
15
10
6
Oral Fluid Testing
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Company
Points
98
# of 1st
Mentions
22
# of 2nd
Mentions
15
# of 3rd
Mentions
2
1. OraSure
2. Quest
55
11
8
6
3. Immunalysis
39
7
7
4
4. Alere
8
1
2
1
Omega
USDTL
MedTox
Oral Fluid POCT
Company
Points
1. Alere
39
# of 1st
Mentions
9
# of 2nd
Mentions
4
# of 3rd
Mentions
3
2. Branan
16
4
2
0
3. Stat Swab
7
2
0
1
4. OraLert
7
1
1
2
Urine POCT
Company
Points
1. Alere
54
# of 1st
Mentions
12
# of 2nd
Mentions
8
# of 3rd
Mentions
2
2. eScreen
34
9
3
1
3. Noble
16
3
3
1
4. EZ Screen
15
2
4
1
Hair Testing
Company
Points
1. Psychemedics
95
# of 1st
Mentions
18
# of 2nd
Mentions
12
# of 3rd
Mentions
5
2. Quest
68
13
10
9
3. Omega
64
10
11
12
Collectors
Company
Points
52
# of 1st
Mentions
13
# of 2nd
Mentions
3
# of 3rd
Mentions
7
1.Concentra
2. Quest
44
10
5
4
3. LabCorp
29
4
7
3
4. EMSI
19
3
3
4
5. US HealthWorks
18
1
6
3
Section 4:
Concerns & Predictions
What’s your greatest concern for the industry?
 Over saturation of the market
 Dilution of professional services… people are jumping
into the industry representing and misrepresenting
what they can bring
 Value of information and being informed is not just
nice, but it will be critical…
 First time saw some major accounts stop drug testing
Section 4: Concerns
 About getting the cheapest drug screen possible and
less about making a DFWP part of the businesses’
strategy to reduce risk and gain more out of human
capital.
 Lowest price wins regardless of quality
 My greatest concern is more regulation, making it
harder for employers to conduct business in a clean
workplace
 Still a dire need for breath alcohol testing sites. Fewer
and fewer places have the machines.
Greatest Concerns:
 Collections, Collections, Collections
Section 4: Predictions
What’s your prediction for the industry?
 More and more TPA’s will quit the business due to the
lack of profit margin
 I predict this industry will grow; growth brings those that
seek to make money and the process behind what we
do may get lost.
 Will see consolidation at all levels, labs, collections…
couple of companies that could become juggernauts…
challenge for them is to stay customer focused? More
often than not they don't… not a threat to [rest of] us.
Section 4: Predictions
 Next couple of years will be very interesting for the industry. Next
3-5 years will bring a lot of changes…oral fluids, other alternative
specimens, including hair; panel will get larger and larger as time
goes on.
 The industry will need to respond quickly to a variety of moving
parts—politics, legal changes within WC requirements, and the
use of synthetic drugs
 It will be an exciting time as changes come down the pike.
 Depending on the economy and information available to
employers, more will be looking for alternative methods of testing
(POCT) to save money. Many will not know what to do with a
positive test or what their next course of action should be.
Section 4: Predictions
 Expanded opiate panels will become the norm over next 1-1.5
years
 Synthetic drug testing, especially marijuana, will continue to grow
in terms of company policies and volume
 Seeing more push for help with clinical services and physicals…
beyond DOT market
 Electronic CCFs being accepted by SAMHSA and DOT will be
huge, much bigger impact on the industry than lab-based oral fluid
testing
 I think we will see an increase in pre employment testing and more
stringent adherence to post accident testing requirements as well
as companies making sure that they have adequate policies in
place.
Section 4: Predictions
 End-users will drive the future of the industry with the
demand for technological solutions that streamline their
jobs. Those that provide these types of solutions and
customizations will come out on top.
 Drug testing is a commodity. While it will continue to
commoditize, the additional services, specialized
automated solutions and expertise that service agent
offers along with the drug testing is the only way to add
value. Over the next 2-3 years, drug testing sales will
continue to rise with economic growth.
 I see the potential for employers to conduct their own
oral fluid collections, thereby reducing the need for
external collectors.
Bonus Question:
Legal Marijuana
 What impact will legal marijuana have
on the drug testing industry?
 Will it hurt drug testing sales?
 Will employers stop testing for
marijuana?
 Will workplace accidents, etc.,
increase due to the legalization of
marijuana?
Bonus Question:
Legal Marijuana
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Drug testing sales will not decrease
Accidents will increase
More state laws will get passed
Some employers will remove marijuana
from their panel but in time restore it
 Insurance providers will pressure
employers to test for marijuana
Bonus Question:
Legal Marijuana
 Whether marijuana is legal or decriminalized
does not have a bearing on the inherent safety
risks associated with its usage. Medicinal
benefits notwithstanding, I think where there is
increased usage, we would also expect an
increase to workplace accidents/injuries.
 Workplace accidents will increase due to
legalization of marijuana
Bonus Question:
Legal Marijuana
 I think it's going to have little impact; won't be a
big impact on the industry.
 I believe sales will go up for testing, as well as
policies and training. I don’t believe employers
will stop testing for MJ.
 This may be a good thing for the oral fluid
testing folks… oral fluid testing will become a
bigger part of pre-employment and postaccident testing
Bonus Question:
Legal Marijuana
WARNING:
It’s going to create a lot of problems for lazy
TPAs and MROs
Thanks again to our
2013 Survey Sponsors…
Learn More
Contact SAPAA to obtain a copy of the
executive summary of this year’s survey.
Visit StateDrugTestingLaws.com
to learn how you can participate in
future surveys.
Bill Current
954-255-8650
bill@billcurrent.com