New Analysis Shows Clinical Laboratories Contribute $140 Billion Annually to the Economy, Supporting Nearly 670,000 Jobs Nationwide
Repeated Medicare Cuts Could Weaken Laboratory Infrastructure, Limit Patient Access to Timely Laboratory Services, and Hinder Investment in Next-Generation Diagnostic Tests
Washington, D.C. – The American Clinical Laboratory Association (ACLA), representing the nation’s leading clinical laboratories, today released the 2025 Independent Clinical Laboratory Economic Impact Study, detailing the vital contributions of clinical laboratories to the U.S. economy and workforce across all 50 states.
The new analysis shows that the clinical laboratory industry contributes about $140 billion in total economic output, representing nearly 0.46 percent of U.S. gross domestic product (GDP). This includes:
Jobs
- Generating a total employment impact of more than 668,000 jobs nationwide
- Directly employing 311,288 people across the country in laboratory operations, technical support, or administrative positions in more than 59,000 laboratory locations, including independent, hospital-based, and physician-office laboratories
- Supporting an additional 356,767 jobs nationwide through supplier and induced effects — including 112,423 supplier jobs and 244,344 jobs generated through induced economic activity
Economic Activity
- Driving $26.42 billion in supplier-related economic activity and an additional $52.46 billion in induced impact, underscoring the extensive reach of the laboratory sector throughout the U.S. economy
Tax Revenue
- Providing more than $19.08 billion in annual tax revenues to federal, state, and local governments (not including sales taxes paid by consumers who use laboratory services)
Jobs at clinical laboratories span a wide range of disciplines, from highly specialized scientific and medical roles to technical, administrative, and management positions. Laboratories are directed by expert pathologists and scientists who oversee complex diagnostic testing and quality assurance, supported by technologists, technicians, and assistants who perform essential day-to-day analyses. Operations staff also manage logistics, supply chains, and technology systems that keep laboratory networks running efficiently nationwide.
Despite this strong economic footprint, ACLA warns that repeated rounds of Medicare payment cuts threaten the stability of the nation’s laboratory infrastructure, risking both jobs and access to timely, reliable testing. The association is urging Congress to enact the bipartisan Reforming and Enhancing Sustainable Updates to Laboratory Testing Services (RESULTS) Act this year to put Medicare reimbursement on a sustainable path and avoid a fourth round of cuts scheduled for January. Over 30 leading laboratory, physician, hospital, and diagnostic manufacturer organizations joined the unified call for Congress to advance the RESULTS Act.
“This analysis makes clear that clinical laboratories fuel both better health and a stronger economy,” said ACLA President Susan Van Meter. “Every job supported by our industry, from laboratory technologists to suppliers, contributes to medical innovation and provide to patients the laboratory test results that help improve and save lives. This cutting-edge industry is being paid through a payment system that relies on decade old, incomplete commercial market data. Ensuring fair and sustainable Medicare reimbursement is critical to supporting laboratories in continued investments in today’s jobs and tomorrow’s diagnostics.”
The analysis, sponsored by ACLA and conducted by John Dunham & Associates, draws on data from the Centers for Medicare & Medicaid Services, Data Axle, ACLA member companies, and state and federal sources. Using the IMPLAN input-output model to assess direct, supplier, and induced effects, the study captures the total economic footprint of more than 55,000 laboratories nationwide.
To explore the findings of the 2025 economic impact report, click here.
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The American Clinical Laboratory Association (ACLA) is the national trade association representing leading laboratories that deliver essential diagnostic health information to patients and providers by advocating for policies that expand access to the highest quality clinical laboratory services, improve patient outcomes, and advance the next generation of personalized care.
