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No Slice of the Pie for Pathology and Laboratory

Managed care appears to be ready to minimize pathology in the same fashion as it minimized the clinical laboratory. Within the laboratory industry, it is widely recognized that most managed care plans reimburse laboratory services at levels which are inadequate to cover the full cost of testing. Now…

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1997’s Top Ten Lab Stories Predict New Directions

CEO SUMMARY: Events during 1997 reveal that the laboratory industry continues to undergo fundamental change. Yet even amidst the industry’s downsizing, selected laboratory organizations continue to flourish. Here is THE DARK REPORT’s annual look at top stories for the year. A careful …

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To Protect Pathology Profits: Understand Managed Care

CEO SUMMARY: On November 8, 1997, THE DARK REPORT convened a private symposium restricted only to pathologists. The sole purpose of this event was to identify how pathologists could preserve and enhance their income. Within the confidential setting of a plush resort in Scottsdale, Arizona…

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Louisiana Reference Lab Purchased By Dynacare

CEO SUMMARY: General Health System of Baton Rouge decided to “cash in” the capital value of its consolidated laboratory organization by selling it to Dynacare. It will use the money for other corporate projects. This sales transaction validates that there is still considerable value t…

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Consolidation Within the Auto Industry

As our system of healthcare evolves in this country, I am continually amazed at how many market dynamics we share with other industries. Take the issue of too many hospital beds and too much laboratory capacity. With inpatient utilization declining, with laboratory reimbursement shrinking, both hospi…

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“State of Lab Industry” Reveals Radical Change

CEO SUMMARY: Pick your trend: declining reimbursement, consolidation, clinical integration, downsizing, and capitated reimbursement. These trends all continued to shape the way laboratories organized to provide services. But 1997’s wildcard was the federal government. Between investigat…

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Quest Announces Major Restructuring for 1998

CEO SUMMARY: Recognizing the reality of laboratory over-capacity in the marketplace, Quest Diagnostics Incorporated intends to align its laboratory capacity with existing specimen volumes. In so doing, it’s taking a progressive step and moving more aggressively than its two national com…

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Physician Solutions Gets Venture Capital Funding

CEO SUMMARY: Physician Solutions becomes the second pathology-based physician practice management company to receive venture capital funding. The company is poised to acquire a number of pathology practices in cities throughout the United States. It is another sign that traditional pathol…

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“December 8, 1997 Intelligence: Late Breaking Lab News”

Fast-growing specialty test provider SpectraCell Laboratories, Inc. of Houston, Texas announced the acquisition of Southwest Hemostasis and Oncology Consultants, Inc. (SHOC) of Dallas, Texas. SpectraCell offers assays that perform functional intracellular analyses of…

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Hitting Financial Bottom

During the last three years, financial news from the clinical laboratory industry has generally been bad. Two things attracted the media’s attention. Multi-million dollar Medicare fraud settlements involving laboratories got widespread notoriety. Financial losses at public laboratories attracted le…

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