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Kaiser Reports Huge Loss, Many HMOs Losing Money

CEO SUMMARY: Poor financial performance of many managed care plans is bad news for clinical laboratories. Those insurance plans losing money find it tough to increase reimbursement for laboratory tests. Financial struggles of the health insurance industry should be closely watched for its…

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Small is Beautiful

I MAY BE THE FIRST TO PUBLICLY DESCRIBE an emerging market trend in the laboratory industry. Starting in the mid-1980s, small laboratories disappeared from the landscape at an astonishing rate. Within the commercial laboratory segment, acquisitions of small laboratories fueled the consolidation proce…

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30-Hospital Lab Contract Inked By Tenet & SBCL

CEO SUMMARY: By signing this deal with Tenet, SmithKline Beecham Clinical Laboratories captured one of the largest hospital laboratory management contracts ever offered. The project’s size, scale and far-flung geography make this a daunting challenge, particularly given California’s c…

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Consider Tenet-SBCL Deal As Timely Wake-Up Call

CEO SUMMARY: Expect the Tenet-SBCL contract announcement to trigger similar deals during the next 18 months. Competition and the need to gain economic advantage will drive some hospital CEOs to turn their laboratories over to commercial laboratory partners. The number of such joint ventur…

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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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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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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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Tenet, SBCL Discussing 33 Hospital Lab Contract

CEO SUMMARY: Tenet Healthcare’s decision to entertain proposals for improving laboratory operations in its Southern California division triggered a year-long discussion with national laboratories. If a deal results, it would represent one of the largest “re-engineering” projects bet…

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Consolidation At Presbyterian Encourages Regional Strategy

CEO SUMMARY: Presbyterian Laboratory Services represents one of the more advanced business models of laboratory consolidation found today in the United States. Owned by an integrated delivery system, the laboratory division serves six hospitals and a variety of outreach clients. Several e…

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Rural Hospital Succeeds With Lab Outreach Service

CEO SUMMARY: Laboratory administrators at rural hospitals generally believe there is no point in establishing a laboratory outreach program. Potential clients are few, and distances between small towns are great. But neither of these obstacles prevented Olympic Memorial Hospital from succ…

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