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Volume XXII No. 15 - October 26, 2015

Will 2016 Bring Opportunity or Tribulations for Labs?

Commentary and Opinion by R. Lewis Dark / By

WE ARE JUST ABOUT EIGHT WEEKS FROM THE ADVENT OF 2016. Given the rapid transformation of healthcare that continues to unfold, it is timely to assess how clinical labs and pathology groups are likely to fare during the coming year. On the plus side, the ongoing evolution toward integration of clinical care will benefit hospital-based …

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WSJ ‘Sticks’ Theranos, Raises Serious Questions

Clinical Laboratory / By

CEO SUMMARY: Following months of investigation, reporter John Carreyrou of The Wall Street Journal published back-to-back reports about aspects of Theranos that the secretive company has kept from public view. Based on interviews with several employees and others with knowledge of events at Theranos, the WSJ disclosed that Theranos runs only a handful of tests …

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Lab Professionals Knew of Challenges at Theranos

Clinical Laboratory / By

CEO SUMMARY: For most of the past year, pathologists and medical laboratory professionals in the San Francisco and Phoenix markets were aware that Theranos was not delivering to patients and consumers the specific lab testing services it regularly touted in news stories and at conferences. Another sign was that, as of July 2014, it was …

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New DAT Law, Competition Heat Up Phoenix Market

Clinical Laboratory Trends / By

CEO SUMMARY: In Arizona, Theranos supported a new state law this year that allows patients to order lab tests without a doctor’s order. Since the law took effect, that law and the ultra-low prices offered by Theranos are drawing away some cash-paying customers from one lab company that has operated in Phoenix for 26 years. …

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Labs React with Criticism to Proposed ADLT Rule

Laboratory Billing / By

CEO SUMMARY: Some in the lab industry had high hopes that passage of the Protecting Access to Medicare Act (PAMA) last year would favorably resolve a number of important issues. However, those hopes were dashed following the September 25 release by CMS of a proposed rule setting out how it will collect market test prices …

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New ADLT Payment Rate May Force Lab to Close

Laboratory Billing / By

CEO SUMMARY: Four Medicare Administrative Contractors currently pay $2,821 for CareDx’s AlloMap test. But under the proposal that CMS issued last month to overhaul the clinical lab fee schedule, CareDx would get only $644. Such a steep price cut would put the lab out of business because the payment would be lower than the cost …

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NeoGenomics to Acquire Clarient for $275 Million

Pathology Trends / By

CEO SUMMARY: In a surprise move that further consolidates national anatomic pathology services, NeoGenomics will acquire Clarient Inc., from General Electric Healthcare. General Electric is getting cash, and preferred and common stock. The two companies announced plans to pursue integrated diagnostic services that would combine lab testing and diagnostic imaging data. The deal is subject …

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October 26, 2015 Intelligence: Late Breaking Lab News

Late Breaking Lab News / By

Describing “nutritional chemistry and food safety as an exciting growth opportunity,” CEO David King of Laboratory Corporation of America announced his company’s recent acquisition of International Food Network and The National Food Laboratory. Terms of the deal were not announced. Some analysts considered this to be a small diversification play by LabCorp as a response to …

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