Issue: Volume XXV No. 3 - February 12, 2018

Lab Executives Lose Big in Federal Jury Trial

RATHER THAN ENTER INTO A NEGOTIATED SETTLEMENT with federal prosecutors, the former executives of Health Diagnostic Laboratory (HDL) and BlueWave Healthcare Consultants decided to take their case to a jury in a federal court in South Carolina. The outcome has notable lessons for all lab managers and pathologists, as well as the attorneys who advise …

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Insights from Jury Verdict in HDL, BlueWave Case

CEO SUMMARY: After a two-week trial, the executives of Health Diagnostic Laboratories and BlueWave Healthcare Consultants were found guilty of violating the federal False Claims Act. Defendants Tonya Mallory, Floyd Calhoun Dent III, and Robert Bradford Johnson were ordered to pay the United States millions for causing HDL to submit more than 35,000 false claims …

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Use of ‘1099 Marketers’ and Lab Compliance Risk

CEO SUMMARY: Experts in lab compliance predict that clinical laboratories and anatomic pathology groups must anticipate tougher enforcement of federal and state laws this year. One source of increased compliance risk for lab companies is the rising use of third-party marketing agreements. David Gee, an experienced lab industry attorney at Davis Wright Tremaine, said lab …

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Newsmaker Interview: Healthcare’s Transformation Now Bringing Changes to Lab Industry

“Today, patients want to get diagnosis and treatment faster with fewer visits to the doctor’s office. They want speedier and more comprehensive delivery of clinical services, be it laboratory tests, imaging, or other procedures.” —Ralph Taylor, President, Sysmex America, Inc. CEO Summary: To bring testing closer to patients, clinical laboratories will need to offer sophisticated …

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GE Healthcare Sells Omnyx to Inspirata

CEO SUMMARY: Now that the FDA has cleared a digital pathology for use in primary diagnosis, interest in DP is building. Inspirata purchased Omnyx and its assets because the Omnyx Dynamyx digital pathology software has strong features that could be integrated into Inspirata’s digital pathology solution. In this interview with THE DARK REPORT, Inspirata CEO …

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Strategies to Offset Medicare Cuts to Be Shared at Exec. War College

DEEP PRICE CUTS to the Medicare Part B Clinical Laboratory Fee Schedule was the big story of 2017. The big story of 2018 may be the widespread financial disruption to the clinical lab industry as labs see dramatic declines in their revenue from these Medicare fee cuts. One early opportunity for lab administrators and pathologists …

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NILA: CLIA Proposal Doesn’t Address Flaws

CEO SUMMARY: For many years, NILA has urged the federal Centers for Medicare and Medicaid Services to make significant changes in CLIA regulations. Yet, in its recent request for information, CMS addressed five specific areas. But the federal agency left out the need for a comprehensive overhaul of the CLIA regulations in other areas, including …

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February 12, 2018 Intelligence: Late Breaking Lab News

Because of the explosion in different payment systems, hospitals, physicians, and providers such as clinical laboratories are facing a new challenge: how to match a payment to a specific patient’s service. Modern Healthcare writer Tara Bannow reports that, “back when most patients paid with cash or checks, most health systems relied solely on banks to handle …

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