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Hospitals Get Bad News Re: TC Grandfather Expire

CEO SUMMARY: During negotiations to extend the payroll tax cut in February, Congressional negotiators agreed to end the technical component (TC) grandfather provision for more than 1,000 rural hospitals. Seeking to save $50 million annually, Congress said anatomic pathologists would no lo…

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MD Self-Referral Issues Target of Utilization Study

CEO SUMMARY: When it comes to the in-office ancillary service (IOAS) exception to physician self-referral, the issue of in-clinic pathology services has become a hot potato. Publication in Health Affairs of a study of urologists’ self-referral of their patients for anatomic pathology se…

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Critical Access Hospitals Losing Lab Test Work

CEO SUMMARY: One consequence of a new “site of service” health plan instituted by Anthem Blue Cross and Blue Shield in New Hampshire is that community hospitals—particularly in rural areas—are being asked by patients to collect blood and lab specimens, then send them off to Anthem…

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Hospital Labs Feel More Pressure to Lower Prices

CEO SUMMARY: It’s a new trend and gathering momentum. At managed care contract renewal time, more hospitals and health systems report much stronger pressure from health insurers to accept deep cuts to laboratory test prices. At the same time, managed care companies are getting smarter a…

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Exome Sequencing Next “Big Thing” for Diagnosis

CEO SUMMARY: For disease diagnostics, exome sequencing is not yet routine, but geneticists are getting close. Using this technology, researchers read those parts of the human genome where about 85% of disease-causing mutations reside. By looking only at the regions that encode proteins—…

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Ohio Lab Offers Lessons Learned from CAP 15189

CEO SUMMARY: For a lab looking to continually improve lab operations, becoming accredited to either ISO 15189 or CAP 15189 is an ideal challenge. After hearing from other lab directors about the benefits of becoming accredited to CAP 15189, the staff at Mercy Medical Center in Canton, Ohi…

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Quest Diagnostics and LabCorp Report Q-4, Full Year Earnings

IN RECENT WEEKS, each of the nation’s two largest public laboratory companies reported earnings for fourth quarter 2011 and full year 2011. Organic growth at both lab companies continues at low single-digit rates. This continues the pattern of relatively modest growth that has been posted by each …

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March 12, 2012 “Intelligence: Late Breaking Lab News”

One of the nation’s more clever business models for hospital laboratories is co-tenancy. It is a proven way that lab administrators can reduce the cost of inpatient testing. It is for this reason that the Michigan Co-Tenancy Laboratory in Ann Arbor, Michigan continues to grow. It a…

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Today’s Lab Test Model Won’t Survive Reforms

CEO SUMMARY: For more than three decades, independent lab companies have waxed fat by increasing their respective market share of lab test referrals from office-based physicians. This era is poised to end as growing numbers of office-based physicians begin to practice medicine within an a…

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Former Lab CEO Explains Why He Filed Lawsuit

CEO SUMMARY: It may be the first time that a former public laboratory CEO has turned whistleblower. Andrew Baker, formerly Chairman and CEO of Unilab Corporation in the 1990s, filed a qui tam case in federal court last year that centers on the practice of lab companies offering private he…

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