Issue: Volume VI No. 13 - September 20, 1999

Hardball and Lowball in the Lab Industry

CLIENTS OF THE DARK REPORT and attendees at our annual Executive War College know that we are advocates for tough competition, excellence in management, and integrity in service. After all, isn’t it true that the companies many Americans annually recognize as the most respected are known for these three qualities? Certainly the recent examples of …

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Bi-Coastal Powerhouse Formed by Lab Merger

CEO SUMMARY: Changes to healthcare continue to stimulate responses from independent commercial laboratories. This time it’s a merger of Las Vegas-based Associated Pathologists Laboratories with American Medical Laboratories of Chantilly, Virginia. This combination creates the third-largest commercial laboratory organization in the United States and shows that size is still important. CONSOLIDATION OPPORTUNITIES continue to fuel …

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Finally: Respect for Cytyc As Aetna OKs ThinPrep®

CEO SUMMARY: Here’s an important development in the battle to get the healthcare community to accept new technology for the preparation of Pap smears. Aetna/U.S. Healthcare announced that it would cover the monolayer preparation tests offered by Cytyc and AutoCyte. Aetna’s decision makes it more difficult for other insurers to refuse reimbursement for this test. …

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Capitated Contracts Losing Favor Within the Hospital Industry

IT APPEARS THAT AN INCREASING number of hospitals in mature managed care markets like California and Colorado are rejecting capitated managed care contracts. If future events verify this trend, the experience of hospitals may demonstrate a way for clinical laboratories to reject capitated arrangements for laboratory testing in favor of other types of agreements. California …

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Ten Management Myths Misled Clinical Laboratory Executives

CEO SUMMARY: We offer our second installment about the ten management myths which led the clinical laboratory industry astray during the 1980s and 1990s. Regretfully, clients responding to part one of this series tell us that these management myths remain alive and well—and continue to steer many well-intended but misguided laboratory managers in the wrong …

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New Trend Threatens Pay For Pathology Part A Services

CEO SUMMARY: Each year, more hospitals adopt an aggressive stance and attempt to eliminate or greatly reduce the compensation paid to their pathology groups for Medicare Part A technical services. There is a surprising reason why an increasing number of hospital administrators suddenly have the confidence to tackle the Part A compensation issue in such …

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Pathologist Income Symposium, Healtheon, Biogenetics, Healthworks Alliance

PATHOLOGIST INCOME SYMPOSIUM DATES ARE NOVEMBER 12-13, 1999 SCOTTSDALE IS AGAIN SLATED TO HOST the upcoming private Pathologist Income Symposium, scheduled for November 12-13, 1999. This year’s symposium tackles the toughest of all topics: increasing the compensation paid by hospitals for pathology Medicare Part A technical services. Compelling case study presenters will offer effective techniques …

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“September 20, 1999 Intelligence: Late Breaking Lab News”

Here’s an interesting company to keep an eye on. Abaton.com, based in Minneapolis, is one of the early entrants in the race to offer web-based clinical network solutions at the point of care. Centrex Clinical Laboratories, Inc. of Utica, New York is purchasing Abaton.com’s product for lab test ordering and reporting. Called ClinLabs.com, the product …

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