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“Waiver of Charges”: What Makes It Work

CEO SUMMARY: Little-used in the 1990s, when laboratory test ordering and billing practices were under intense scrutiny by federal regulators, the strategy of “free testing” is popping up in more regions around the country. To comply with compliance guidelines, labs using this strategy g…

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Lab Marketing Strategy Triggers Legal Concerns

CEO SUMMARY: That famous phrase “everyone wants something for nothing” does not describe TennCare Select’s reaction to the “free testing” that Quest Diagnostics is performing for its beneficiaries. TennCare provides a real-world example of how this strategy can put a laboratory at o…

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West Hills Lab Outreach Still Thrives in California

CEO SUMMARY: Now in its seventh year, the lab outreach program at West Hills Hospital and Medical Center in Southern California continues to produce significant revenues. The goal was to target physicians’ offices in the medical campus around the hospital and provide them a local laborato…

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LabCorp’s MacMahon Provides Insights About Lab Marketplace

CEO SUMMARY: Pathologists will be particularly interested in what Thomas MacMahon has to say about the evolution of laboratory medicine. As Chairman, President, and CEO of Laboratory Corporation of America Holdings, he has continuous access to some of the best strategic analysis about the…

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Why Patient Safety Is Change Agent for Labs

CEO SUMMARY: In the 1990s, managed care was the dominant change agent to the nation’s healthcare system. During the 2000s, it will be patient safety. However, unlike the unpleasant consequences of HMOs, capitation, and utilization risk, patient safety will prove to be a benevolent trend…

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Hospital Mergers Down For Fourth Straight Year

CEO SUMMARY: Changes in hospital ownership often drive laboratory restructuring projects. But hospital merger and acquisition activity has declined for four consecutive years. Consequently, comprehensive laboratory restructuring efforts have declined in parallel. Hospital M&A numbers …

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Lab Director Takes a Stand On Patented Genetic Testing

THIS LETTER APPEARED in the mailbag after our special intelligence briefing on how genetics will transform healthcare and before our look at how high-priced specialty esoteric testing is causing budget headaches for regional labs. (See TDRs, December 30, 2002 and …

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Quest Finally Owns Unilab, New Market Cycle To Begin

PERSISTENCE FINALLY PAID OFF for Quest Diagnostics Incorporated. On February 26, it took ownership of Unilab Corporation, capping almost 11 months of effort. In completing this acquisition, Quest Diagnostics completes the two blood brothers’ acquisition sweep of m…

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LabCorp Starts Tinkering With DIANON Systems

CEO SUMMARY: For almost two decades, DIANON Systems supported one of the most successful sales and marketing programs in the public laboratory sector. However, despite its pre-acquisition statements that it would retain DIANON’s operational integrity, LabCorp has already begun to implem…

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Several Major Surprises Mark Events of 2002

CEO SUMMARY: It was a year when the two blood brothers got much bigger and expanded market share by buying their largest competitors. With patient safety as the goal, employers began active steps to force hospitals, physicians, and other healthcare providers to use quality management syst…

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