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Volume XI No. 5 - April 5, 2004

Arguing in Favor of Regional Laboratory Networks

Commentary and Opinion by R. Lewis Dark / By

TWO STORIES IN THIS ISSUE OF THE DARK REPORT DEMONSTRATE why regional laboratory networks are a business model which should be revisited by hospital laboratories with outreach programs. Seattle provides a great example of how an existing laboratory network gives hospitals in that region an additional business option. PACLAB, an eight-hospital laboratory network, has steadily grown …

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MT Contracts HIV & HCV In Hospital Lab Scandal

Clinical Laboratory / By

CEO SUMMARY: An extraordinary story is unfolding in a Baltimore hospital laboratory. Maryland state health officials have uncovered serious operational deficiencies, particularly with HIV and HCV testing performed over a 14-month period. During this same time, a medical technologist now infected with both HIV and HCV claims a malfunctioning laboratory instrument was the source of …

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Florida Issues State RFP For Sole Medicaid Lab

Managed Care Contracts / By

CEO SUMMARY: If competitive bidding for Medicare business is something universally viewed as bad by the laboratory industry, then the lab services RFP issued by Florida’s Medicaid program must be considered a serious threat to the status quo. Further, the fact that Medicaid officials in Florida designed a 28-day RFP process to award a single …

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LabCorp Buys MDS Labs In New York and Georgia

Clinical Laboratory Trends / By

CEO SUMMARY: It’s the final chapter of the “Canadian Invasion” of the U.S. laboratory testing market. In the mid-1990s, both MDS and Dynacare built a sizeable presence in the United States as they both worked to develop joint ventures with hospital laboratories. Dynacare was acquired by LabCorp in 2002. In selling two U.S. lab operations, …

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Seattle Hospital Lab JVs Involve Quest & LabCorp

Clinical Laboratory Trends / By

CEO SUMMARY: Joint ventures and collaborative business relationships between hospital laboratories and commercial laboratories continue to be a difficult business model. Recent events in Seattle demonstrate the challenges and frustrations of establishing such ventures, then making them successful. One footnote to the Seattle story is the success of a regional laboratory network at grabbing market …

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Welsh Carson Pays $1.14 Billion To Acquire U.S. Oncology, Inc.

Clinical Laboratory Trends / By

EVEN AS THE LAST ISSUE of THE DARK REPORT was reaching clients with news of Genzyme Corp.’s offer to buy IMPATH Inc., another big oncology deal was announced. On March 22, 2004, Welsh, Carson, Anderson & Stowe announced an offer of $15.05 per share to purchase all remaining shares of U.S. Oncology, Inc. which it …

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AmeriPath Reports on 2003, Its First Year as a Private Firm

Pathology Trends / By

WILL BUSINESS BE BETTER for AmeriPath, Inc. as a private company than it was as a publicly-traded firm? Its 2003 financial report indicates some interesting challenges, many common to all laboratories. First, a look at basic numbers. AmeriPath’s net revenues grew from $478.8 million in 2002 to $485.0 million in 2003. That’s a growth rate …

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“April 5, 2004 Intelligence: Late Breaking Lab News”

Late Breaking Lab News / By

There’s a new national lab company ready to compete. This week American Esoterix Laboratories, Inc. (AEL) announced it was open and ready for business. Based in Brentwood, Tennessee, it has already completed two lab acquisitions (ThromboCare Laboratories and Viral Diagnostics, Inc., both in the Dallas, Texas area). Chairman and CEO is Brian Carr. President and …

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