Issue: Volume XXV No. 2 - January 22, 2018

Pulling Aside the Curtain on Alleged Lab Fraud

IN RECENT YEARS, MANY CLINICAL LAB ADMINISTRATORS AND PATHOLOGISTS have looked with dismay at the increased fraud associated with the laboratory test referrals of office-based physicians. High-profile federal cases involving lab companies accused of fraud garner national headlines. Small companies sending sales reps into physicians’ offices, however, have changed the landscape in 2018 versus that …

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Former HDL CEO Mallory Sues Richmond Law Firm

CEO SUMMARY: It’s a case of the client turning on the law firm. The former CEO of Health Diagnostic Laboratory is suing the law firm that advised her and her lab company on major legal matters. LeClairRyan of Richmond, Va., previously settled certain allegations with HDL’s bankruptcy trustee for $20.375 million. Now Mallory hopes to …

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Alberta Health to Build New Lab to Serve Edmonton, Province

FOLLOWING YEARS OF CONTROVERSY associated with different plans to build a large new laboratory facility to serve Edmonton and the surrounding region, Alberta Health Services (AHS) will finance and build the new lab with its own resources. Last month, the Alberta government announced that it will develop a new central laboratory that will process 80% …

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To Grow Nationally, NY Lab Buys Tox Labs

CEO SUMMARY: It is unusual when a regional health system’s clinical lab company acquires a commercial lab company outside its geographic home. But that’s what happened in December when Rochester Regional Health System’s subsidiary, ACM Global Laboratories, acquired a toxicology testing lab and a pre-employment drug-screening company, both in Horsham, Pa., more than 300 miles …

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After Court Decision, India Faces Shortage of Lab Professionals

THERE IS ALREADY A SHORTAGE of competent professionals available to sign off on medical laboratory reports in India. Now a recent Supreme Court decision may exacerbate this problem. On Jan. 11, the Hindu Business Line, a newspaper, reported that medical labs across India could face a significant shortage of competent professionals to sign lab reports …

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Allegations of Lab Test Fraud Involve Multiple Defendants

CEO SUMMARY: UnitedHealth made national news when it filed a $100 million lawsuit against Next Health and other defendants in Dallas in January 2017. The insurer alleged fraud involving clinical laboratory tests. That lawsuit is just the latest chapter in an almost decade-long string of legal proceedings involving the healthcare businesses some of the defendants have …

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January 22, 2018 Intelligence: Late Breaking Lab News

In a first for Australia, a pathology lab was given authorization to use patient-collected cervical specimens from eligible women for cervical cancer screening purposes. VCS Pathology of Melbourne, Victoria, was given this authorization by Australia’s National Association of Testing Authorities (NATA). Other pathology labs in Australia are expected to be granted similar authorization in coming …

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