Since 1995, Reliable Business Intelligence for Clinical Laboratories, Pathology Groups and Laboratory Diagnostics

December 1997

No Slice of the Pie for Pathology and Laboratory

Managed care appears to be ready to minimize pathology in the same fashion as it minimized the clinical laboratory. Within the laboratory industry, it is widely recognized that most managed care plans reimburse laboratory services at levels which are inadequate to cover the full cost of testing. Now it may be pathology’s turn. In the …

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1997’s Top Ten Lab Stories Predict New Directions

CEO SUMMARY: Events during 1997 reveal that the laboratory industry continues to undergo fundamental change. Yet even amidst the industry’s downsizing, selected laboratory organizations continue to flourish. Here is THE DARK REPORT’s annual look at top stories for the year. A careful analysis of their impact leads to some interesting conclusions. WHEN FEDERAL REGULATORS introduced …

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To Protect Pathology Profits: Understand Managed Care

CEO SUMMARY: On November 8, 1997, THE DARK REPORT convened a private symposium restricted only to pathologists. The sole purpose of this event was to identify how pathologists could preserve and enhance their income. Within the confidential setting of a plush resort in Scottsdale, Arizona, experts and pathologists dissected the market dynamics eroding pathology compensation. …

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Louisiana Reference Lab Purchased By Dynacare

CEO SUMMARY: General Health System of Baton Rouge decided to “cash in” the capital value of its consolidated laboratory organization by selling it to Dynacare. It will use the money for other corporate projects. This sales transaction validates that there is still considerable value to a profitable laboratory outreach program. BATON ROUGE-BASED Louisiana Reference Laboratories …

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“December 29, 1997 Intelligence: Late Breaking Lab News”

AmeriPath, Inc. is at it again. On December 19, company officials announced the acquisition of two more pathology practices. The practices are The Dermatopathology Laboratory in Pittsburgh and Laboratory Physicians in Jacksonville. More acquisition announcements should be expected from AmeriPath. Growth by acquisition will be its dominant strategy during the next several years. Managed care …

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Consolidation Within the Auto Industry

As our system of healthcare evolves in this country, I am continually amazed at how many market dynamics we share with other industries. Take the issue of too many hospital beds and too much laboratory capacity. With inpatient utilization declining, with laboratory reimbursement shrinking, both hospitals and laboratories are forced to: (1) find more patients; …

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“State of Lab Industry” Reveals Radical Change

CEO SUMMARY: Pick your trend: declining reimbursement, consolidation, clinical integration, downsizing, and capitated reimbursement. These trends all continued to shape the way laboratories organized to provide services. But 1997’s wildcard was the federal government. Between investigations and new regulations, laboratories were hit hard. FOR THE clinical laboratory industry, 1997’s biggest surprise was both unexpected and …

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Quest Announces Major Restructuring for 1998

CEO SUMMARY: Recognizing the reality of laboratory over-capacity in the marketplace, Quest Diagnostics Incorporated intends to align its laboratory capacity with existing specimen volumes. In so doing, it’s taking a progressive step and moving more aggressively than its two national competitors to resolve an issue which impacts the entire industry. WHEN IT WAS ANNOUNCED last …

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Physician Solutions Gets Venture Capital Funding

CEO SUMMARY: Physician Solutions becomes the second pathology-based physician practice management company to receive venture capital funding. The company is poised to acquire a number of pathology practices in cities throughout the United States. It is another sign that traditional pathology business models are about to undergo fundamental change. FRESH ON THE HEELS of an …

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UroCor, Inc.; Histology & AP.

UROCOR, INC. MATCHES THERAPEUTICS WITH DIAGNOSTICS With the recent signing of a co-promotion agreement with Zeneca Pharmaceuticals, UroCor, Inc. is positioned to offer therapeutics as a complement to its diagnostic testing. Based in Oklahoma City, UroCor is a fast-growing company which offers diagnostic testing and disease management services to urologists throughout the United States. Profiled …

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