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

Volume V No. 7 - May 26, 1998

Serendipity Or Response To Market Forces?

THIS ISSUE OF THE DARK REPORT IS A GREAT EXAMPLE of how marketplace developments shape what we write. After the Executive War College in New Orleans, I spoke with our Editor, Robert Michel. We discussed his impressions from the collective information of 26 presentations. We also discussed what he had learned from conversations with the attendees, …

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Premier & Quest Devise New Service Arrangement

CEO SUMMARY: Pressure is intense for hospital buying consortiums to justify themselves and deliver added savings and services to their members. The recent announcement of a new national contract between Premier and Quest Diagnostics Incorporated demonstrates that both buying groups and laboratory industry suppliers are showing increased flexibility in creating new service menus. LONG-STANDING RUMORS …

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New Alliance Is Example Of Coming Paradigm Shift

CEO SUMMARY: This strategic alliance represents a fundamental shift within the clinical laboratory industry. It is a response to market forces which should not be ignored by laboratory executives and pathologists anywhere in the country. Whether the alliance succeeds or fails, it will launch the laboratory industry into new directions. IT WILL TAKE SEVERAL YEARS …

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AutoPap System Cleared For Primary Screening

CEO SUMMARY: It is time for pathologists and cytologists to buckle their safety belts. The marketplace for automated cytology is entering a new cycle of rapid change. NeoPath’s AutoPap System is now poised to demonstrate that it is economical and clinically viable. Expect continual improvements to automated cytology technology to eventually replace traditional methods of …

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Hospital Lab-Commercial Lab Partnering Is Upcoming Trend

CEO SUMMARY: At this year’s Executive War College in New Orleans, laboratory innovators convened to study hot new trends in the industry.They were surprised to learn that partnering relationships between hospital laboratories and commercial laboratories are finally gaining wider acceptance. Laboratory executives involved in partnering arrangements had good things to say about the success of …

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Substance Abuse Testing Gains Increasing Favor

CEO SUMMARY: Here’s an update to our earlier predictions that clinical laboratories would find substance abuse testing to be a profitable adjunct to clinical testing. Evidence accumulates that competition in the drugs of abuse marketplace is intensifying. While still a relatively small market, opportunities for non-SAMHSA laboratories to build a profitable book of business should …

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Unilab & LabOne Demonstrate Improved Revenues and Profits

AFTER AN EXTENDED MULTI-YEAR financial siege, Unilab Corporation seems to be regaining its balance. First quarter financials demonstrate respectable gains in revenue and net income at the California based laboratory. Big gains were posted by LabOne, Inc. of Lenexa, Kansas. For the quarter, revenue and net earnings increased 32% and 43%, respectively. Growth was evenly …

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“May 26, 1998 Intelligence: Late Breaking Lab News”

Another pathologybased PPM received venture capital funding. Pathology Consultants of America, (PCA) based in Nashville, Tennessee, just closed a $16 million deal with two venture capitalists. ABS Capital Partners of Baltimore invested $15 million. An affiliate of SunTrust/Equitable Securities ponied up the additional $1 million. This gives PCA cash to use in purchasing pathology practices. Meanwhile, …

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