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Ramifications From The “H2N2 Virus Affair”
CEO SUMMARY: Here’s the story, with new details, about how a patient sample, cross-contaminated with a “deadly” strain of influenza virus from a proficiency test kit, triggered alarm bells at the highest levels of public health in Canada, the United States, and the World Health Orga…
Ex-IMPATH Executives Face Criminal Charges
CEO SUMMARY: With the announcement by Federal prosecutors of criminal and civil actions against a total of seven ex-IMPATH executives, IMPATH becomes the laboratory industry’s worst criminal scandal. Federal prosecutors contend these executives, during their employment at IMPATH, engine…
LabCorp Buys Esoterix For $150 Million in Cash
CEO SUMMARY: Laboratory Corporation of America continues to display an appetite to grow by acquisition. However, its purchase of Esoterix, Inc. creates unique management problems for LabCorp, because Esoterix is itself a product of a lab acquisition strategy. Over the past ten years, Esot…
Victim of First HIPAA-Convicted Crime Tells Story & Offers Advice to Labs
“I figured the hospital would be subject to a multi-million dollar HIPAA lawsuit if my hospital records were proven breached—which is exactly what happened.” —Eric Drew, cancer patient and patient identity theft victim CEO SUMMARY: Eric Dre…
“April 18, 2005 Intelligence: Late Breaking Lab News”
This may be one of the laboratory industry’s biggest “oops” ever! As part of a laboratory proficiency testing pro- gram, 4,000 laboratories in 18 countries were sent live samples of the H2N2 flu virus. In 1957, H2N2 is believed to have caused between one and four million deaths. Last week, the …
OIG May Be Investigating AP Laboratory Condos
CEO SUMMARY: Attorneys for one of the companies which sells and manages anatomic pathology condominium laboratories have recently sent correspondence to owners of these lab condos. This correspondence discloses that the Office of the Inspector General (OIG) is examining the company. Knowl…
“Lowest-Priced” Chickens Came Home to Roost
IN READING THE INTELLIGENCE BRIEFINGS on reference/esoteric laboratories in this issue, I found it interesting that American Medical Laboratories (AML) is no longer an independent lab company serving this market segment and that, of the four remaining independent lab companies focuse…
Spectrum Owns MEDex, Comments on Trends
CEO SUMMARY: Spectrum Laboratory Network recently completed its acquisition of MEDex Laboratories, Inc. of Kingsport, Tennessee. It is becoming a regional laboratory powerhouse, challenging Laboratory Corporation of America in North Carolina and establishing a sales base in Atlanta, long-…
Profit Squeeze Pressures Specialty Laboratories
CEO SUMMARY: Despite much success and milestones at Specialty Laboratories during the past 36 months, it has yet to achieve the most important goal of all: net profits. One reason is familiar to all laboratory administrators and pathologists: with its existing fixed overhead and cost stru…
National Reference Labs Undergoing Changes
CEO SUMMARY: Maybe it’s a coincidence. More likely it is a response to changes in the reference/esoteric marketplace. Specialty, Esoterix, ARUP, and Mayo have each recently reassessed their core strategies and are shifting their business emphasis. Because three of these four companies a…
CURRENT ISSUE
Volume XXXII, No. 13 – September 15, 2025
The Dark Report examines a new bill that would reform PAMA and avoid reimbursement rate cuts scheduled for January 2026. Clinical laboratory leaders are urged to make their voices heard in Congress. Also, an expert describes how labs can fix pre-analytical errors and avoid disaster.
See the full table of contentsHow Much Laboratory Business Intelligence Have You Missed?
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