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Two Blockbuster Stories to Rock the Lab Industry!

Commentary and Opinion by R. Lewis Dark / By R. Lewis Dark

WOW! YOU HAVE TWO BLOCKBUSTER STORIES covered in this issue, which expanded into extra pages to bring you all the news and detailed analysis. Our lead story, on the facing page, is first news in the laboratory industry of criminal indictments of three ex-UroCor executives for laboratory sales and marketing practices that violated Medicare anti-kickback …

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Ex-UroCor Execs Face Criminal Indictments

Laboratory Compliance / By Robert Michel

CEO SUMMARY: Criminal charges filed against ex-UroCor executives center around several marketing practices that have much in common with marketing strategies used by many lab- oratories today. These include discounted pricing for non-Medicare specimens, offering to waive charges to payers and patients where UroCor was an “out-of-network” provider, and offering “consulting services” payments to client …

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UroCor’s Sales Tactics Violated Medicare Laws

Laboratory Compliance / By Robert Michel

CEO SUMMARY: By issuing a multi-count criminal indictment against three former UroCor executives, one federal attorney is creating new legal precedents for the laboratory industry. The criminal charges accuse UroCor of inducing physicians through such gambits as deeply-discounted pricing and “free testing” when not a contracted network laboratory. Labs should review compliance with these types …

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Lawyer Argues: UroCor Charges Are a Concern

Laboratory Compliance / By Robert Michel

CEO SUMMARY: Criminal charges in the case against three ex-UroCor executives will likely alter existing compliance practices that affect how a lab offers price discounts to physicians and the way a lab uses “waiver of charges” in situations where it is an out-of-network provider. Attorney Jane Pine Wood was one of the first to see …

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In-House Versus Off-Site: Different Concerns

Pathology Trends / By Robert Michel

CEO SUMMARY: Three methods are available to specialist physician groups to capture anatomic pathology revenues generated by their patient population. Two methods have been around a long time. The pathology condo lab method is a new ploy. Of the three, one is generally accepted and more easily meets state and federal compliance requirements. But the …

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Changing Economics Motivate Urologists & GIs

Pathology Trends / By Robert Michel

CEO SUMMARY: Over the past 18 months, more specialist groups have created their own anatomic pathology laboratories than were created in the past five years. It’s a gold rush to tap and capture profits generated by the anatomic pathology services provided to their patient populations. This heightened interest in operating in-house anatomic pathology laboratories is …

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National AP Firms Target Gastroenterology Groups

Pathology Trends / By Robert Michel

CEO SUMMARY: It’s a trend as yet invisible to the radar screens of most pathology groups. A new crop of specialty AP companies is targeting gastroenterology. In the past 36 months, several have posted phenomenal growth in both specimen volume and revenue. The heightened competition for GI biopsies mirrors that seen last decade for urology …

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Digene, Kaiser Northern California, ARUP Labs, Bio-Reference Labs, Specialty Labs

Clinical Laboratory Trends / By Robert Michel

DIGENE ENJOYS GROWTH OF 39% IN RECENT MONTHS FUELED BY RECOGNITION that HPV plays a key role in causing cervical cancer, demand for Digene Corporation’s hc2 High-Risk HPV DNA test is increasing at impressive rates. For fiscal third quarter 2004, Digene reported revenue growth of 39% over the same quarter last year. Its revenues climbed …

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Molecular Diagnostics’ “Gap in Expectations”

Molecular Diagnostics / By Robert Michel

CEO SUMMARY: This year’s Executive War College provided strong evidence that the twin trends of molecular diagnostics and Lean management methods are taking root within the laboratory industry. Each is a trend in its infancy. Molecular diagnostics will require considerable time before it exerts substantial impact on labs across the country. In contrast, Lean management …

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Congress Holds Hearing On Hospital Lab Fiasco

Clinical Laboratory / By Robert Michel

CEO SUMMARY: Problems at the laboratory of Maryland General Hospital came under scrutiny at a recent Congressional hearing. There was plenty of criticism and embarrassment for several entities which should have detected the problems and reacted to the situation more effectively. Serious questions were asked about how and why so many safeguards failed to detect …

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