Issue: Volume XII No. 14 - October 3, 2005

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Do Regional Laboratories Have A Bright Future?

IF INTEGRATED INFORMATICS CAPABILITIES will be a major point of differentiation among competing laboratories in the future, then several warning flags have recently appeared in the laboratory industry. Regional laboratories and hospital lab outreach programs should take notice. One warning flag is the recent announcement by Laboratory Corporation of America that “eLabCorp,” a Web-connectivity system …

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Our Tenth Anniversary Serving Your Needs

CEO SUMMARY: It was on September 25, 1995 that the first issue of THE DARK REPORT was published. The laboratory industry was in financial turmoil. There was widespread consolidation in both the commercial lab sector and among hospital laboratories. Reimbursement for lab testing services was falling rapidly. Yet, through all these negative changes, there were …

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AmeriPath Will Acquire Specialty Laboratories

CEO SUMMARY: It’s a surprise to most lab industry observers. AmeriPath, a company built around 400 anatomic pathologists working mostly in community hospitals, is acquiring a national reference/esoteric testing company. However, this deal may be better understood by looking at the motives of Welsh, Carson, Anderson & Stowe, the private equity firm which owns AmeriPath. …

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GE Healthcare Will Acquire IDX Systems for $1.2 Billion

BIG CORPORATIONS continue racing to create the universal EMR (Electronic Medical Record) and a fully-integrated healthcare informatics platform. Last Thursday, September 29, General Electric Co. announced that it would pay $1.2 billion to acquire IDX Systems Corporation of Burlington, Vermont. The transaction is expected to close in early 2006. Executives from both companies touted the …

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Bio-Reference Labs Develops Regional & Niche Strategies

CEO SUMMARY: Bio-Reference Laboratories, Inc. (BRLI) of Elmwood Park, New Jersey is a lab company on a roll. In just five years, it has grown from $66 million to more than $160 million in annual revenues. For regional laboratories across the country, BRLI’s business strategies demonstrate how a well-focused business plan, combined with good management …

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WSJ Slams Client Bill For Lab Test Services

CEO SUMMARY: In a front-page story last Friday, the Wall Street Journal published an investigative story on the topic of client billing for laboratory testing and anatomic pathology services. It’s a “must-read” story for all pathologists and lab managers. For years, the lab industry has recognized how client-billing arrangements can encourage a variety of abuses …

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“October 3, 2005 Intelligence: Late Breaking Lab News”

It’s a small news item, but sometimes such tidbits presage a bigger story. On Monday, September 26, 2005, Quest Diagnostics Incorporated filed a notice with the Securities and Exchange Commission (SEC) that it had received a subpoena from the New York Office of the U.S. Department of Health and Human Services (HHS). The subpoena requested …

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