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CPI Lab Fee Adjustment Threatened by New Bill

CEO SUMMARY: Once again, the laboratory testing industry has been singled out as a healthcare “whipping boy” by Congressional aides. In working to develop the next federal budget, legislators again propose to deny annual CPI price updates for laboratory tests. This won’t be anything…

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Commercial Lab JVs With Hospitals Are Declining In Number

CEO SUMMARY: There are many reasons why a properly-designed and well-managed laboratory test joint venture (JV) between a commercial lab company and a hospital should succeed. But no matter how strong such concepts look on paper, the real world has proven to be a harsh environment. A hand…

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Sigma-Aldrich, Ivax Diagnostics, i-STAT, Quest Diagnostics, Unilab

SIGMA-ALDRICH SELLS ITS EIA PRODUCT LINE TO IVAX DIAGNOSTICS FOLLOWING ITS DECISION TO EXIT the clinical diagnostics market, Sigma-Aldrich, Inc. has sold its global enzyme immunoassay (EIA) product line to Ivax Diagnostics, Inc., based in Miami, Florida. Th…

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Is Physicians’ Office Testing Evolving Toward an Oligopoly?

CEO SUMMARY: One of the most unpopular industries with consumers is the airline industry. At the national level, it is an oligopoly—dominated by seven carriers. But in many cities, it is a monopoly, with one airline flying 80% of the seats in and out of town. Ongoing consolidation of re…

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Michigan Lab Network Wins Major HMO Deal

CEO SUMMARY: By winning the contract for Health Alliance Plan (HAP), Joint Venture Hospital Laboratories (JVHL) captured another major exclusive managed care contract for lab testing services in Southeast Michigan. Its victory demonstrates that local hospital lab outreach programs can com…

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Why Can’t Hospital Laboratories Collaborate?

MOST PEOPLE KNOWLEDGEABLE ABOUT THE INNER WORKINGS of the clinical laboratory industry generally agree that hospital laboratories possess inherent advantages over commercial laboratories—anytime a hospital lab outreach program is organized properly and marketed professionally. Certainly the manage…

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New Lab Company Ready To Open In Orlando, FL

CEO SUMMARY: Within the next 60 days, a brand-new clinical laboratory company will begin operations in Orlando, Florida. In the short term, it plans to offer routine testing to physicians’ offices. However, the real goal is to create a laboratory organization with integrated information…

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Lab Test Ordering On Web Presents Tough Challenges

CEO SUMMARY: During 1999, many factors pointed to the speedy introduction of Web-based lab test ordering between physicians’ offices and their laboratory providers. Several credible players, like Healtheon/ WebMD (now WebMD) and Advanced Health Technologies, held numerous contracts to i…

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Dynacare Expands Into Chicago With Purchase of 2 Small Labs

IT’S A BUSINESS STRATEGY BUILT AROUND “go where they ain’t!” In recent years, Dynacare, Inc. has found its best growth comes from acquiring laboratories in areas somewhat underserved by larger national competitors. It then uses that regional base to expand outward into nearb…

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Analysis of Lab Testing Market Reveals Competitive Shifts

CEO SUMMARY: Even as public lab and anatomic pathology companies enjoy sustained growth in specimen volumes and revenues, fundamental shifts in the basic marketplace have changed the competitive environment. Surprisingly, the most open market segment is anatomic pathology specimens referr…

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