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

December 2003

“December 22, 2003 Intelligence: Late Breaking Lab News”

Late Breaking Lab News / By Robert Michel

Two more not-for-profit hospitals received the Malcolm Baldridge National Quality Award last month. St. Luke’s Hospital in Kansas City, Missouri and Baptist Hospital in Pensacola, Florida become the second and third hospitals to receive this award for quality achievement. Last year, SSM Health, a 21-hospital health system in St. Louis, Missouri became the first healthcare …

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Who’s Buying Labs? Activity Shifts Down

The Dark Report / By Robert Michel

CEO SUMMARY: As the number of independent clinical laboratories dwindles, most remaining owners seem content to continue building their business—at least until a buyer makes them an offer “they can’t refuse.” Acquisitions of pathology group practices were also few in number during 2003. However, the reduced number of labs in the United States is causing …

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Welcome Back, Consumers!

Commentary and Opinion by R. Lewis Dark / By Robert Michel

DURING 2003, THERE WAS SURPRISING PROGRESS IN THE MOVEMENT to improve patient safety. Closely-connected to the patient safety trend are efforts to measure and make public the healthcare outcomes achieved by hospitals, physicians, laboratories, and other providers. One reason why this movement is important is that it begins the process of restoring the consumer as …

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2003’s Big Lab Stories Reflect Health Trends

The Dark Report / By Robert Michel

CEO SUMMARY: At a minimum, 2003 proved to be a year of relative stability for the laboratory industry, as demonstrated by THE DARK REPORT’S “Ten Biggest Lab Stories of 2003.” The year was free of industry-wide crises and scan- dals. That allowed most laboratory administrators and pathologists to concentrate on improvements to their laboratory operations …

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LabOne Speaks Out About Use of “Free Testing”

The Dark Report / By Robert Michel

DEAR EDITOR, In the August 26, 2002 issue of THE DARK REPORT, an article appeared entitled, “Two Blood Brothers Use ‘Free Testing’ Strategy.” In markets that we are “in-network” with various payers, this tactic of providing free testing is increasingly prevalent. While the competitive injury inflicted on other providers by this questionable practice is obvious, …

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“New” Legal Landmines For Clinical Laboratories

The Dark Report / By Robert Michel

CEO SUMMARY: HIPAA is a big “new” source of legal expo- sure for laboratories and other healthcare providers. Also, recent court decisions and changes in clinical practices are adding to the legal risk for labs. Attorney Richard S. Cooper offers insights on how laboratories can better protect them- selves, along with specific strategies to use …

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Abbott Acquires I-Stat, Resolves FDA Problems

The Dark Report / By Robert Michel

CEO SUMMARY: On December 15, Abbott revealed that it would pay $392 million to acquire I-Stat. Days later, on December 18, Abbott disclosed that the FDA had deemed its Lake County, Illinois diagnostic manufacturing plant to be “in substantial conformity” with the Quality System Regulation. Abbott can now restart manufacturing and sales of test kits …

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ABNs, Client Billing, “Free Testing? & Medicare Rules

Commentary and Opinion by R. Lewis Dark / By R. Lewis Dark

BY ANY MEASURE, ENFORCEMENT ACTIONS by the Office of the Investigator General (OIG) for Medicare fraud and abuse within the laboratory testing industry was a big story during the 1990s. I wonder if we might not be at a crossroads that could take our profession down a similar path in this decade. There are interesting …

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“Free Testing” Strategy Stirs the Pot in Tenn.

The Dark Report / By Robert Michel

CEO SUMMARY: In Tennessee, the state’s Medicaid HMO plan has been at odds with Quest Diagnostics Incorporated, which is using the “free testing” strategy to expand its share of the market. In recent months, TennCare Select has taken active steps to insure its physicians understand that Quest Diagnostics is not a contract provider for “included …

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“Waiver of Charges”: What Makes It Work

The Dark Report / By Robert Michel

CEO SUMMARY: Little-used in the 1990s, when laboratory test ordering and billing practices were under intense scrutiny by federal regulators, the strategy of “free testing” is popping up in more regions around the country. To comply with compliance guidelines, labs using this strategy generally ask the physician to sign contracts representing and warranting that circumstances …

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