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capitated contracts

Lab CEO Sees Three Trends Cutting Volume, Revenue

CEO SUMMARY: Following the sale of his hospital lab outreach business to a national lab company, former CEO James Fantus told THE DARK REPORT about the significant trends he saw unfolding in the Northeast. They include: a shrinking number of physician customers for labs; a rising number o…

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LabCorp to Purchase Pathology, Inc. in Calif.

CEO SUMMARY: It is one of those clinical laboratory deals that was announced before the end of 2015. Laboratory Corporation of America said it will acquire most of the operating assets of Pathology Inc., of Torrance, California, and that the acquired lab “will cease operations” upon t…

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Pathologist Raises Questions about Theranos’ Business Model

Dear Editor: I read your two articles on Theranos in the August 11 issue of THE DARK REPORT, and concur in large part with your thoughtful conclusions. For several years, I have closely followed Theranos and have been quoted in trade publications speaking favorably…

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Lab Serving Large MD Group Manages Quality and Costs

 CEO SUMMARY: For decades, pathologists have pointed out that their expertise in laboratory medicine can be tapped by physicians to improve utilization of lab tests, contribute to improved patient outcomes, and reduce the overall cost of care. Exactly that is now happening at Atrius Heal…

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Federal Judge Lets Trial Proceed in Case against Quest

CEO SUMMARY: Four California labs have charged that Quest Diagnostics engaged in predatory pricing in a case filed originally in November 2012. After the lawsuit was amended last summer and fall, U.S. District Judge William H. Orrick III heard various motions in the case. On February 6 he…

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RDX Alters Business Plan Due to Lab Market Changes

CEO SUMMARY: Executives at Regional Diagnostic Laboratories (RDX) made a splash last May when they announced the new company’s plans to acquire hospital laboratory outreach programs, backed by a capital commitment of $250 million. Now, in recognition of swift changes in the lab test mar…

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Four California Labs Sue Quest and Three Insurers

CEO SUMMARY: Allegations of anticompetitive and monopolistic behaviors that violate state and federal laws are the basis of a private lawsuit filed by four independent clinical lab companies in California. The defendants are Quest Diagnostics Incorporated, Aetna, Blue Shield of California…

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Why Capitate Genetic and Molecular Test Prices?

HOW MANY OF YOU LIVED THROUGH THE DECADE OF THE 1990s and experienced the free fall in the prices managed care plans paid for clinical laboratory testing? In California—at the peak of this insanity—some lab companies offered full risk, capitated contracts for as low as 20¢ PMPM (per member per m…

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FTC Opposes LabCorp’s Acquisition of Westcliff

CEO SUMMARY: On November 30, FTC commissioners filed an administrative complaint opposing Laboratory Corporation of America’s acquisition of Westcliff Medical Laboratories, Inc., on the grounds that it “violates antitrust laws and would lead to higher prices and lower quality…

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AG Jerry Brown Settles With Westcliff Med Labs

CEO SUMMARY: In California, Attorney General Jerry Brown is making progress in the whistleblower lawsuit alleging that seven lab companies in California violated state law by not giving Medi-Cal, the state’s Medicaid program, the same lowest lab test prices they extend to physi…

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