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

January 2000

New Blood Entering the Lab Industry

SURPRISE! THERE’S A QUIET MANAGEMENT REVOLUTION UNDER WAY in both the clinical laboratory industry and pathology profession. During the past few years, a steady flow of new-thinking Presidents and CEOs have taken control of laboratories, pathology group practices, and vendor companies. From CEO Ken Freeman of Quest Diagnostics Incorporated to CEO James New of AmeriPath, …

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Pathology Profession Facing New Directions

CEO SUMMARY: Big changes ahead during the next decade. Among the predictions: the number of two and three-pathologist group practices will radically diminish; pathology centers of excellence will achieve new market dominance; and…ever more intense competition for anatomic pathology specimens! At the same time, expect this decade to bolster the professional status of pathologists. IF …

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Park City Solutions Acquires Chi Lab Systems of Ann Arbor

THERE’S A NEW PLAYER in healthcare and laboratory consulting. Park City Solutions, Inc. of Midway, Utah wants to become a recognized name in the lab industry. As one step toward this goal, it announced the purchase of Chi Laboratory Systems, Inc. of Ann Arbor, Michigan. The deal was made public on December 28, 1999. Park …

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Digene Corp’s HPV Test Attracts More Attention

CEO SUMMARY: Evidence accumulates that HPV testing may be an effective way to identify women at risk for cervical cancer. Both Laboratory Corporation of America and Quest Diagnostics Incorporated recently added Digene’s Hybrid Capture® II HPV test to their menu. The intent is to offer physicians a follow-up test for patients with Pap smears that …

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NY Labs Achieve Repeal Of Onerous Surcharge

CEO SUMMARY: Clinical laboratories in the state of New York demonstrated that the lab industry can effectively influence legislation when the state legislature finally repealed the onerous laboratory test surcharge first enacted in 1997. Lab industry leaders should apply the lessons learned from the New York experience to improve the laboratory industry’s track record in …

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Epitope, LabOne, CARESIDE, Quest, Structural Bioinformatics, UroCor

EPITOPE RAIDS LABONE FOR NEW PRESIDENT/CEO; READIES DRUGS OF ABUSE MARKET LAUNCH DURING THE YEAR 2000, Epitope, Inc., based in Portland, Oregon, plans to introduce a drugs of abuse test based on its patented OraSure® oral collection technology. To aid in this new product launch, Epitope raided the executive ranks of its biggest customer. Robert …

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“January 24, 2000 Intelligence: Late Breaking Lab News”

Financial progress at Tenet Health Corp. provides a glimpse at how the hospital industry is faring. Tenet announced a 7.2% increase in revenues for fiscal second quarter, fueled primarily by an increase in patient admissions at its 113 hospitals. Tenet also reported an average increase of 3% to 6% in payments from managed care companies. …

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Winners and Losers in the Lab Industry

NOTHING WAS EASY FOR COMMERCIAL AND HOSPITAL LABS during the past decade. Reimbursement for lab tests was slashed. Onerous compliance requirements for Medicare increased costs and added to the legal risk of operating a laboratory. Patient access was restricted through exclusive HMO and managed care contracts. These problems took a huge toll on our industry. …

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“State of Lab Industry” Holds Surprises for All

CEO SUMMARY: Say goodbye to several of the trends which shaped the lab industry during the 1990s, such as consolidation and government compliance programs. Although these trends won’t completely disappear, they will be superseded by a number of new transformational influences. During the next 48 months, these influences will bring lightning change to clinical labs …

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Abbott, CARESIDE, Bio-Reference Labs, DIANON Systems

SWARM OF LAWSUITS NOW PLAGUES ABBOTT LABS PAYING A $100 MILLION FINE TO THE Food and Drug Administration (FDA) did not end Abbott Laboratories, Inc.’s problems related to its diagnostic test kits and reagents. Since payment of the FDA fine last month, Abbott has been served by a number of lawsuits. Most of these suits …

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