Issue: Volume V No. 1 - January 19, 1998

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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30-Hospital Lab Contract Inked By Tenet & SBCL

CEO SUMMARY: By signing this deal with Tenet, SmithKline Beecham Clinical Laboratories captured one of the largest hospital laboratory management contracts ever offered. The project’s size, scale and far-flung geography make this a daunting challenge, particularly given California’s competitive managed care marketplace. FOLLOWING MONTHS OF STUDY and negotiations, SmithKline Beecham Clinical Laboratories (SBCL) and Tenet …

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Consider Tenet-SBCL Deal As Timely Wake-Up Call

CEO SUMMARY: Expect the Tenet-SBCL contract announcement to trigger similar deals during the next 18 months. Competition and the need to gain economic advantage will drive some hospital CEOs to turn their laboratories over to commercial laboratory partners. The number of such joint ventures and contract management projects will increase rapidly. BY ALL MEASURES, the …

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Market Forces Cause Detroit’s Lab Network To Launch Operations

CEO SUMMARY: Joint Venture Hospital Laboratories’ success rests on an essential fact: it exists to respond to marketplace demands. The network links laboratory operations of 24 hospitals owned by eight integrated delivery systems in Greater Detroit. Not only is it the oldest continuously operating regional laboratory network in the United States, but it is probably …

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New Pathology PPM Hits Competitive Marketplace

CEO SUMMARY: Nashville hatched another pathology-based physician practice management firm. This newest competitor was capitalized by pathologists. Its arrival in the competitive marketplace signals further changes to the traditional practice of pathology. Increasingly, it will be business skills, not clinical skills, which feed pathology success. PATHOLOGY CONSULTANTS OF AMERICA (PCA) is the newest pathology-based physician …

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“January 19, 1998 Intelligence: Late Breaking Lab News”

Interesting events continue unfolding at Columbia/HCA Healthcare Corp. Last November the hospital giant announced plans to spin off 108 of its 340 hospitals. Later that month the Columbia signs were removed from its corporate headquarters building in Nashville. Columbia hospitals in different cities around the country have quietly removed the word Columbia from their names. …

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