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

June 1999

Choosing a Eulogy for SBCL

What is an appropriate eulogy for SmithKline Beecham Clinical Laboratories (SBCL), soon to be acquired by Quest Diagnostics Incorporated? I would venture to say that even SBCL’s most aggressive competitors would acknowledge that it is a fine laboratory organization, noted for quality, integrity, and consistent service to its clients. Despite those characteristics, SBCL no longer survives …

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Quest and SBCL Expect Merger Date Of July 2

CEO SUMMARY: After months of waiting and planning, executives at Quest Diagnostics Incorporated believe that July 2, 1999 will be the date when their acquisition of SmithKline Beecham Clinical Laboratories becomes official. During the month of July, expect a flurry of activity at Quest Diagnostics as managers of the combined laboratory company work to harvest …

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Surprise Merger Changes Cytology Marketplace

CEO SUMMARY: Expect the merger of AutoCyte, Inc. and NeoPath, Inc. to inaugurate a new market cycle for automated cytology systems. FDA approval of AutoCyte’s liquid preparation system, called PREP™, sets the stage for intensified marketing battles between the AutoCyte/NeoPath consortium and Cytyc Corporation. Clinical laboratories should benefit from this competition. When the recently-announced merger …

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PennState Geisinger Building “ Distributed Lab ” Around POCT

CEO SUMMARY: Here’s an integrated healthcare system that’s pushing its clinical laboratory across traditional barriers between physician’s office and clinical lab. At PennState Geisinger Healthcare, a fast-growing health system located in rural Pennsylvania, point-of-care testing is now an essential feature of the regional clinics and physician offices. The laboratory embraced this development and is now …

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Associated Pathologists Laboratories, Dynacare, Bio-Reference Labs, Quest, AmeriPath

ASSOCIATED PATH LABS WINS PATENT FOR DRUGS OF ABUSE TEST IT’S NOT TOO OFTEN that independent commercial laboratories are awarded patents. Las Vegas-based Associated Pathologists Laboratories received a patent for a technique it developed relating to drugs of abuse testing. The patent involves a unique method for detecting drugs of abuse in hair samples. APL …

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“June 28, 1999 Intelligence: Late Breaking Lab News”

South America continues to catch the eye of many North American health insurers. Aetna International, Inc., the international operating subsidiary for Aetna Inc., disclosed its purchase of a 50% interest in Cruz Blanca Columbia. This is a clinic-based healthcare insurance organization with 190,000 members in Columbia. Aetna’s acquisition was done through its Chilean subsidiary. “We …

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Marketplace Rewards Those Who Get It Right

INTELLIGENCE BRIEFINGS IN THIS ISSUE REVEAL INTERESTING DEVELOPMENTS in our industry. I would agree with our Editor’s assessment that a new cycle of investment in laboratory companies is about to occur. There is also confirmation that laboratories which offer HMOs more than simple lab test data can get a leg up on their competitors. On …

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Investors Coming Back To Clinical Lab Industry

CEO SUMMARY: Wall Street money is beginning to flow back into the commercial laboratory industry. This time the beneficiary is Unilab Corporation of Tarzana, California. New York-based Kelso & Company signed an agreement to buy 93% of Unilab’s shares. The common perception among financial analysts and money managers is that commercial laboratories may again be …

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Palo Alto Needle Reuse Episode Widens in Scope

CEO SUMMARY: As many as 15,000 people have been offered free blood testing because they may have been drawn by this phlebotomist since 1994. Regulatory action, private lawsuits, and media coverage are subjecting laboratories to unwelcome, even unwarranted, scrutiny. As the ramifications of this phlebotomist’s decision to reuse needles ripples through the healthcare system, lab …

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Developing Technology Expected To Fuel Boom In Anatomic Pathology

CEO SUMMARY: Established demographic trends point to a coming boom in the demand for anatomic pathology services. Greater number s of senior citizens, living longer lives, will raise the number of cancer cases diagnosed annually in the United States. New diagnostic technology will increase the value of the pathologist to clinicians. But before a pathology …

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