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

February 2005

“Frankenstein the Tumor” is No More

HOW MANY OF YOU HEARD ABOUT THE TUMOR NAMED “FRANKENSTEIN”? This is a story which made national news in mid-January and again in early February. The story line is simple. A nine-year old boy in Richmond, Virginia was diagnosed in May 2003 with embryonal rhabdomyosarcoma. A grapefruit-sized tumor was impinging on his optic nerves and …

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Five Lab Acquisitions Over the Past Ten Weeks

CEO SUMMARY: Many lab executives and pathologists will be surprised to learn that five independent laboratory companies were acquired between December 1, 2004 and February 11, 2005. Only one acquisition was announced to the public. The other four were private sales and both buyers and sellers preferred to avoid any publicity associated with these acquisitions. …

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Review of 2004 Lab Sales Identifies Buyer Interest

CEO SUMMARY: Laboratory acquisition activity was surprisingly high during 2004. One reason is that new buyers appeared in the marketplace. However, all buyers have specific acquisition criteria. When a selling lab meets that criteria, it can expect multiple bidders and a strong purchase price. Here’s a review of 2004’s lab acquisition activity, with commentary about …

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Barristers Offer Insights Into OIG Opinion 04-17

CEO SUMMARY: This is an intelligence briefing which tries to “read between the lines” and: 1) provide useful information about the OIG’s “undeclared” views on physician self-referral issues, particularly as they relate to anatomic pathology condominiums; and, 2) how specialist physician groups and pathologists are reacting to such issues in the real world of the …

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Doctor “Pay to Perform” Launched by Medicare

CEO SUMMARY: Medicare’s just-announced physician “pay-for-performance” program will be a positive development for laboratories and pathologists. One consequence is that physicians will be measured on how effectively they use recommended lab tests in certain areas of care. This will give physicians a motive to work with laboratories which offer added-value lab testing services. HEALTHCARE’S 800-POUND …

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Evolution in Pap Marketplace Shows Impact of New Guidelines

NEW GUIDELINES for cervical cancer screening issued last year are fueling strong growth in the sales of Digene Corporation’s HPV test. For its fiscal second quarter that ended on December 31, 2004, Digene reported sales of $27.0 million. That’s a 28% increase from Digene’s sales of $21.1 million for its second quarter last year. HPV …

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RFID, Georgetown University Hospital, HIV Screening Studies, MDS, Duke, HCA, Cigna

PFIZER AND GLAXO-SK TO USE RFID TAGS IN 2005, RFID TEST IN BLOOD BANK RADIO FREQUENCY IDENTIFICATION (RFID) is making swift progress in a variety of healthcare applications. The Food and Drug Administration (FDA) wants to secure the nation’s drug supply through widespread use of RFID tags by 2007. To counter drug counterfeiting, some pharmaceutical …

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“February 14, 2005 Intelligence: Late Breaking Lab News”

There’s a new leader at the Clinical Laboratory Management Association (CLMA). On February 7, 2005, CLMA President Judy Lien announced that the association’s new Chief Executive Officer is Dana Procsal, Ph.D., a veteran laboratory industry executive. Most recently, Procsal was Vice President of Laboratory Improvement Programs at the College of American Pathologists, a position he …

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