CEO Dan Lambert Says the Future Is Right Now for Digital Pathology

There is no time like the present to be part of the digital pathology field.

According to a 2022 report published by Facts and Factors Research, the global digital pathology market is expected to grow at a 13.8 percent CAGR increase in the next five years. In a recent Forbes article, Dan Lambert, CEO of PathologyWatch, spotlights several different market factors that are synergistically signaling exciting growth opportunities ahead.

Increased Demand for Remote Work

When the COVID-19 pandemic hit in 2020, many companies saw increased demand for the ability to work remotely. With a national emergency declared in the United States, the Centers for Medicare and Medicaid Services (CMS) waived some requirements for remote pathology sites. The ensuing three years have shown the benefits of digital pathology, especially as the demand for remote work remains high.

Lambert also sees digital pathology as a way to connect people in underserved areas with the latest technological advances in healthcare, which otherwise would not be accessible to them. “I predict that remote digital pathology will eventually help leapfrog the latest technology forward by connecting individual offices with dermpath experts and algorithms throughout the world,” Lambert writes.

New CPT Codes

The College of American Pathologists (CAP) worked with the AMA CPT Editorial Board in 2022 to develop a series of 13 new Category III digital pathology digitization procedure codes, which went into effect on January 1, 2023. Before the change, US labs used the same codes to report a diagnostic read, whether they were made under a microscope or using digital pathology.

The new codes will be used to track the extent to which digital pathology is being utilized, with the hope that it will soon result in additional reimbursement amounts, allowing those using the new technology to recoup some of their costs. 

“I see this change providing a clear financial incentive for labs to invest in digital pathology,” Lambert says.

Clinical Correlation

Digital pathology provides a more efficient means of communication between dermatologists and dermatopathologists. Where the old model functioned with biopsy samples placed on glass slides sent off to a lab, digital pathology streamlines the process by scanning the samples into digitized slides. Dermpaths now read the case digitally and can consult in real time with the originating dermatologist. 

“Quicker and more efficient diagnosis and communication can position the patient as the real beneficiary of digital pathology advancement,” says Lambert. ”In time, I predict that digital pathology and remote reads by experts will be the industry standard.” 

Single-Solution Systems

Until recently, most parts of the digital pathology process were handled separately. In the past, one company might have specialized in building viewers, while one developed diagnostic algorithms, and another specialized in the EMR systems that tracked each patient’s case. But now, vendors like PathologyWatch, with its Dermpath Optimization Tool, have developed systems that cohesively connect each step in the process.

“The fact that a few different vendors have developed start-to-finish systems is a good thing for digital pathology,” Lambert says. “[It] means the industry will continue shifting to support digital solutions.”

To read the full Forbes article, click here.

2023 Annual American Academy of Dermatology (AAD) Weekend Recap

We had a wonderful time at AAD’s annual conference held last weekend in New Orleans. With 8,500 health care professionals and over 16,000 total registrants, The Big Easy was bustling with the latest in pathology resources and expertise.

Here are a few of the highlights from the PathologyWatch team:

This year’s booth enjoyed a vibrant stream of dermatologists who were interested in learning about dot., the dermpath virtual assistant that helps derms to manage case workloads, view digital images and case files, create detailed pathology reports, and collaborate with colleagues.

Dr. Cacey Peters was on hand to demonstrate how dot. makes reviewing and annotating digital slides a snap for Derms and DermPaths. He also met with more than a few starstruck fans of his popular #GettingUnderYourSkin social media videos.

Though it isn’t polite to brag, we put our best foot forward by producing the show’s most memorable swag: custom socks featuring verruca vulgaris histology. That’s right, we gave warts to hundreds of happy derms.

In addition, a hot pot of Starbucks coffee is just what the doctors ordered to stay alert and keep their eyes on the prize. 

Friday evening we hosted our infamous annual AAD happy hour at Rosie’s On The Roof, which is located on top of the historic Higgins Hotel. Hundreds of Derms braved stormy conditions to join us for a classic fais do-do with bottomless hors d’oeuvres and drinks. 

Falling on St. Patrick’s Day, the place was packed with festive pathologists looking to let off a little steam and socialize between conference sessions. 

The patio’s city views offered the perfect location to reunite with familiar faces and make new friends.

At the end of the night, we gave away special edition “Show Me Some Skin” T-shirts, with the words “Don’t Worry, I’m a Dermatologist” emblazoned on the back. Based on the frenzy they created, the shirts will definitely be returning for AAD in San Diego 2024.

We also handed out custom Mardi Gras beads to get everyone in the spirit of the city’s rich traditions.

Looking back at our experience in New Orleans, we couldn’t be happier to be a part of this inspiring community. It was a joy to meet, answer questions, and share our vision with so many talented Derms. 

2023 promises to be a herald year for PathologyWatch, our customers and partners as we continue making great strides in the development of technology and workflows that enhance patient outcomes.

PathologyWatch Named a Top 10 Dermatology Company in MedHealth Outlook

As the global demand for dermatology solutions has increased, PathologyWatch has been at the forefront of serving both patients and clinicians through innovation in digital dermatopathology. By providing benefits like increased efficiency, enhanced patient care, and new opportunities for revenue growth, PathologyWatch is recognized for transforming the dermatological experience for providers and patients alike.

MedHealth Outlook recently ranked PathologyWatch as one of the top 10 dermatology solution providers across the globe. In its feature, CEO Dan Lambert shares how PathologyWatch is helping reduce the cost of pathology while creating better patient care across the country. Read on for key highlights, or visit this link to read the full article.

The Need for Digital Transformation

Simplifying the clinical workflow results in optimal clinical decision making and enhanced patient care. Without a computerized pathology platform, hospitals and dermatology clinics miss out on increased efficiency by sharing digital histologic slides and direct interaction with the preferred EMR.

PathologyWatch provides this increased level of care and efficiency not only through its digital tools but also its network of academic-level dermatopathologists and expert consultation. With around-the-clock access to knowledgeable telepathologists, hospitals and clinics can rely on PathologyWatch for expert locum tenens support at any time. By saving both time and money with PathologyWatch, healthcare providers can better position themselves for whatever the future may hold.

How Do Digital Pathology Services Work?

By combining the knowledge and technology of an academic center with the efficiency and customer service of a private lab, PathologyWatch helps labs embrace digital transformations quickly and keep everything functioning efficiently. Within just three to six months, PathologyWatch and its team of experts can help clinics complete this transition and manage digital pathology diagnostics in a wide variety of subspecialties.

To continue helping patients receive faster diagnoses and equal access to dermatopathology services while empowering laboratories, PathologyWatch is pursuing expanding its reach with artificial intelligence. This tool will provide even more value to PathologyWatch’s services, which already include completely integrated EMR reporting and round-the-clock access to digital slides. Thanks to PathologyWatch’s end-to-end solution, dermatologists now have access to an effective integration of EMRs, laboratory information systems, scanners, and digital viewer technologies.

PathologyWatch in Action

PathologyWatch’s partners that digitize consistently report a net positive return on investment. When facing challenges related to understaffing, overflow volume, or difficulty managing rural operations, providers turn to PathologyWatch for help. 

Cedars-Sinai Medical Center is a classic example of how PathologyWatch provides value to its clients: Wanting to grow its outreach, Cedars-Sinai partnered with PathologyWatch for novel growth solutions in a new demographic, access to experts, and broad insurance coverage.

However, Cedars-Sinai isn’t the only clinic that has been transformed by PathologyWatch. “We are honored that of all the digital dermpath labs available, dermatologists are increasingly choosing to partner with us,” says Lambert. ”As digital dermatopathology begins to grow, it has the potential to reduce the costs of pathology by billions while creating better patient care for everyone across the country. We’re thrilled to be winning so much volume so quickly.”

To read the full article, click here.

PathologyWatch Featured in MedTech Strategist 

The digital pathology industry is expected to grow from $736 million in 2021 to $1.37 billion by 2026. PathologyWatch is emerging as an industry leader, blazing a trail for patient care like no other.

In a MedTech Strategist feature, CEO Dan Lambert describes PathologyWatch’s unique position in the dermatopathology space, its success in building a workflow from start to finish, and its unprecedented opportunity to transform the future. Read a few highlights here, or visit this link for the full article.

What Makes PathologyWatch Unique


There are 25 million skin biopsies performed in the US each year and, while many are benign, it is estimated that there will be 99,780 new melanoma diagnoses in 2022. Melanoma is a serious form of cancer that, if left untreated, can metastasize and quickly become fatal. The world is in dire need of a reliable and efficient solution to diagnose skin cancer.

With its focus on dermatology and cutting-edge tools, PathologyWatch is in a unique position to address this critical issue. Unlike other digital pathology companies, PathologyWatch works mostly with outpatient clinics rather than hospitals. This means that PathologyWatch is involved throughout the entirety of the testing and diagnosis process.

Building a Digital Pathology Workflow from Start to Finish


PathologyWatch’s clients asked for more than just a “piecemeal” solution—they wanted involvement at every point in the process. According to Lambert, “They wanted us to manage the transportation of the tissue sample, the courier system, the insurance billing, enhanced bidirectional interfacing, and everything in between.” This was a challenge since they “had to integrate a lot of systems that didn’t talk to each other.”

Lambert adds, “The firm had to build the laboratories, develop a laboratory information system to specifically track skin specimens, buy scanners, create a digital platform usable anywhere (not just in the laboratory setting), forge agreements with payors and partners, and connect with all the major electronic medical record providers in dermatology.”

PathologyWatch was able to successfully build a workflow integrating all the pieces from start to finish. The system integrates with the electronic medical records of Modernizing Medicine, EZDERM, and eClinicalWorks, which cover app. 90 percent of dermatology practices, and the company receives samples from over 120 dermatology clinics, with near perfect client retention.

The Advantage of Control


This fully-integrated system has granted PathologyWatch the control necessary to get accurate, detailed results. “In our own environment, we can assure the quality and standardization of the techniques used to generate a digital image. This means better outcomes for AI. You can get amazing sensitivity and specificity when you take the right algorithmic approach while simultaneously operating in controlled laboratory conditions,” says Lambert. 

To read the full article, click here.

CEO Dan Lambert Advises Company Leaders on How to Prepare for a Recession

The looming uncertainty of an oncoming recession is nerve-wracking for business owners. But recessions, although distressing, are not a new phenomenon. History is replete with unforeseen downturns in the economy that have taught us how to best prepare for such events.

In a recent Forbes article, Dan Lambert, CEO of PathologyWatch, explained how companies can prepare for and survive a recession. Here are the strategies he recommends:

Have a Plan that Can Pivot Quickly

With so much unknown in the future, it might seem difficult to come up with a plan. But Lambert asserts, “Whether a pandemic, a recession or a shift in your industry is to blame, business leaders need to have a plan in mind before it’s needed.” Even if it’s just a “best guess,” an imperfect plan is better than no plan at all.

Harness Various Types of Funding

Another best practice is to diversify your sources of capital. “Secure access to private equity, venture debt, collateralized credit, SBA loans, EIDL and PPP because these are all strategic options at the right moment,” Lambert advises. And it is crucial to focus on funding that will keep your company secure in the long term. 

Be Prepared to Scale Up and Down Quickly

Next, Lambert suggests that business owners should pre-identify essential and nonessential positions so that tough decisions can be made quickly if downsizing is necessary. Similarly, be prepared to create new roles when people need to be redeployed.

Gain Commitment, but Accept Disagreement

While some disagreement is a good thing for a healthy company dynamic, there can be a lot more disagreement during a recession, and having consensus is equally important. Make sure that, despite disagreements, you are able to get people to commit and move forward.

Dan Lambert points out that these strategies, in a way, involve reverting to a “startup mindset.” When the economy is unstable, this kind of agility is essential for a company to continue to prosper.

To read the full Forbes article, click here.

Dan Lambert, PathologyWatch CEO, Joins the Digital Pathology Place to Share PathologyWatch’s Success Story

Although healthcare providers have become accustomed to digital solutions in recent years, these solutions have only recently been introduced to dermatologists. But how much can digital pathology really do for dermatologists?

Dan Lambert, PathologyWatch CEO, recently joined Aleksandra Żuraw, DVM, PhD, host of the podcast Digital Pathology Place, to share how PathologyWatch’s quick, convenient, and comprehensive digital pathology solution is transforming the dermatology industry.

Here are some highlights from Dan and Aleksandra’s interview:

How does digital pathology empower dermatologists?

Dan: For the first time, the dermatologist is not only getting just a fax report over. They’re actually getting to see the case and see the area that the pathologist has highlighted. And now, also for the first time, a lot of our dermatologists are showing the case to the patient, showing why there’s going to be a procedure. . . . There can potentially be financial upside here, in that if the dermatologist is reading the case, it may increase the complexity of the visit. . . .

The second compelling factor for dermatologists is that because our system is integrated with their EMR, they’re typically saving, on average, about 25 hours per month, per clinic, not having to deal with organizing patient cases. And they really value that time savings. 

And then number three is simply better patient care. You’re less likely to have errors if the dermatologist can see the image and they can make sure it’s the right patient and the right case.

How do you stay ahead of the competition?

Dan: We’re deep into research on the AI front of trying to figure out how do you detect different tumors and skin conditions, and how do you make it really accurate so that it can be a true assistive device, or an assistive tool, for both dermatologists and dermatopathologists?

We’ve introduced some new staining techniques that aren’t used generally in other laboratories. We’ve also switched to fully automated equipment, and we’re not doing a lot of processes by hand that introduce variability. And that tight control of the process means true consistency. And then also a number of QA/QC processes that exist in our lab that do not exist in other laboratories, to make sure that those inputs are the best that they possibly can.

Did you have a failure that set you up for success?

Dan: We needed to be able to detect the edges of the tissue so that we can eventually do things like measurements. And so we introduced this green stain that would highlight the edge of the tissue, and it took us a couple of months of trying a bunch of different colors to try to capture this special staining. And the ink would get on other parts of the tissue, other colors would get washed out. . . . Working through some of those actual laboratory changes [was] very important. . . . We finally got a staining technique that works consistently on probably about 98% of tissue.

You won’t want to miss this intriguing interview! Click here to access the full podcast and learn more about how dermatologists can save time, improve communication, and provide a better patient experience by going digital.