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

Commentary and Opinion by R. Lewis Dark

Consumer Choice Decimates HMO Business Plan

I ENCOURAGE YOU TO CAREFULLY READ THE STORY about the financial woes of managed care plans in this issue. After virtually every big HMO company reported sizeable losses for 1997, Kaiser Permanente joined the club with a $270 million loss. Following years of soaring profits, it appears that health insurers are about to enter a sustained …

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Rate of Change Follows a Geometric Curve

JANUARY WAS A WILD MONTH FOR COMPANIES OFFERING automated cytology products. January opened with new CPT codes for automated cytology procedures taking effect. January closed with news that the FDA’s advisory panel, convened on January 28, recommended approval of the PMA supplement of NeoPath, Inc.’s automated cytology instrument for primary screening of Pap smears. Do not …

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Small is Beautiful

I MAY BE THE FIRST TO PUBLICLY DESCRIBE an emerging market trend in the laboratory industry. Starting in the mid-1980s, small laboratories disappeared from the landscape at an astonishing rate. Within the commercial laboratory segment, acquisitions of small laboratories fueled the consolidation process. Eventually three huge laboratory companies emerged as the industry behemoths. Since 1990, …

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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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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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Hitting Financial Bottom

During the last three years, financial news from the clinical laboratory industry has generally been bad. Two things attracted the media’s attention. Multi-million dollar Medicare fraud settlements involving laboratories got widespread notoriety. Financial losses at public laboratories attracted less public attention, but were big news among Wall Street analysts and investors. After such a sustained …

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Regional Growth Strategy Guides Presbyterian Labs Services

CEO SUMMARY: Here’s a consolidated laboratory organization serving six hospitals and an extensive outreach program. As described in the first installment of this two-p art series, Presbyterian Laboratory Services actively reshaped itself into a well-run asset for its parent healthcare system. Consistent growth and strong management execution gives Presbyterian Laboratory Services the potential to become …

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Market Upheavals Around The Corner

In reviewing the galley proofs for this issue of THE DARK REPORT, I am struck by the potential for significant market upheaval in two areas of laboratory medicine: pathology and the clinical laboratory marketplace of California. The stories about AmeriPath, Inc. and California laboratories contain some interesting market analysis and predictions about future events. For …

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Consolidation Within The Diagnostics Industry

IN THIS ISSUE WE ARE GIVING COVERAGE to the acquisition of Coulter Corporation by Beckman Instruments, Inc. for an important reason. I believe this merger is first evidence of impending and significant changes to the diagnostics industry. During the next 18 to 24 months, a deluge of mergers, acquisitions and joint ventures will be announced. Why? …

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Pathology PPM Attempts Public Offering Of Shares

CEO SUMMARY: AmeriPath’s efforts to become a public company make it the most visible management experiment in the pathology world today. Already considered controversial by many pathologists, should AmeriPath successfully pull off its proposed initial public stock offering, it will assume a leadership position in the industry which cannot be ignored. PATHOLOGY MAY SOON have …

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