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Recognizing What the Marketplace Teaches Us
IT IS ONLY IN HINDSIGHT THAT MOST PEOPLE UNDERSTAND THE TRUTH of a situation. Unfortunately for laboratory employees in New York City, the lack of foresight by their leaders must inevitably lead to job cutbacks at three recently constructed laboratories. As you will read in our “Tale of Two Cities…
A Tale of Two Cities: New York Versus L.A.
CEO SUMMARY: Here’s a dramatic comparison of the effects of advanced managed care on West Coast laboratories as compared to East Coast laboratories. While Los Angeles labs endured radical downsizing and bankruptcy, New York experienced significant increases to existing laboratory capaci…
Diagnostics Companies React To Changing Lab Marketplace
CEO SUMMARY: During the last five years, extensive consolidation among in vitro diagnostics (IVD) manufacturers has created a new class of industry giants. Their increased dominance of the IVD marketplace promises significant change to how laboratories acquire and use reagents, test kits,…
AmeriPath, Cytyc, Unilab, Naiad
AMERIPATH INKS PACT WITH MEDAPHIS, BUYS FLORIDA PATH PRACTICE Things are busy at AmeriPath, Inc. of Riviera Beach, Florida. The pathology practice management company announced a number of accomplishments. First, it signed an agreement with Medaphis Corporation…
LabCorp Making Steady Progress On Path Back to Financial Health
MOST OF THE LAB INDUSTRY is watching the impending acquisition by Quest Diagnostics Incorporated of SmithKline Beecham Clinical Laboratories (SBCL). This big news overshadows the steady gains made at Laboratory Corporation of America in its efforts …
Preparing for the Unexpected and Unimagined
WHO WOULD HAVE EVER PREDICTED THAT A PHLEBOTOMIST would reuse needles? Just as surprising, who would have ever predicted that the phlebotomist would be working at a respected clinical laboratory like SmithKline Beecham Clinical Laboratories (SBCL)? …
Labs Entering New Cycle Of Evolution and Change
CEO SUMMARY: As some of the nation’s most astute and forward-looking lab executives prepare to gather in New Orleans for the fourth annual EXECUTIVE WAR COLLEGE, it is time to share our assessment of the laboratory and pathology industry. Recent events presage another profound …
SBCL Phlebotomist Found Reusing Needles in Calif.
CEO SUMMARY: News that a phlebotomist employed by SmithKline Beecham Clinical Laboratories (SBCL) was discovered to be washing and reusing needles got national media attention last week. During her 22-month employment at SBCL, this phlebotomist apparently reused butterfly needles on “di…
Crises Management Plan Essential for Every Lab
CEO SUMMARY: “It can’t happen here” is not good management. All clinical laboratories and pathology practices should anticipate the worst and develop their own internal controls to prevent the unthinkable and prepare for the unexpected. Rogue phlebotomists like the one at SmithKline…
Lab Contracts Priced Below Cost May be Defined as Inducement
PROBABLY THE MOST SERIOUS problem in the lab industry is one of its own making. “Below cost” contracting is a practice where clinical laboratories offer the managed care company a price which is less than its cost to provide the testing. With laboratory overcapacity still abundant in many cities…
CURRENT ISSUE
Volume XXXII, No. 10 – July 14, 2025
This issue is strong on different flavors of enforcement that clinical laboratories, whether they want to or not, will need to contend with. Lab stakeholders provide insights that medical labs need to brace for more action to counter pending test reimbursement rate cuts under PAMA. Also, this issue provides the legal and regulatory landscape for clinical labs’ use of AI and how it evolves with the technology. AI is creating legal uncertainty for clinical labs, especially around data privacy and FDA oversight of AI tools in diagnostics.
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