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Preserving Competition Is Goal of California Lawsuit

CEO SUMMARY: Once again, the use of deeply-discounted lab test pricing to win exclusive managed care contracts is involved in a court case. However, this latest private lawsuit is different from earlier cases because it seeks to preserve competition in the lab testing and the managed care…

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December 31, 2012 “Intelligence: Late Breaking Lab News”

It is likely that the latest lab acquisition by Bio-Reference Laboratories, Inc. (BRLI) is for the purpos…

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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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Of 88305-TC and Other Bad News for Pathology Labs

BY NOW, VIRTUALLY ALL PATHOLOGISTS ARE AWARE of the announced cut in Medicare reimbursement for the technical component (TC) of CPT 88305. Effective on January 1, 2012, Medicare will pay 52% less for this CPT code. From the prior level of $69.78, the new reimbursement will be $33.70. As news of this…

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CDC Surveys Docs’ Use of Laboratory Test Results

CEO SUMMARY: There’s a treasure trove of information and insights about how physicians use clinical laboratory tests contained in survey data recently collected by a team from the Centers for Disease Control and Prevention. Designed to identify challenges in how physicians utilize labor…

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Labs Have Questions about Prostate Biopsy Policy

CEO SUMMARY: How will pathology laboratories respond to the publication of revised policies in how laboratories should file Medicare Part B claims for prostate biopsies? Not only will there be a sharp drop in the reimbursement paid for a 12-core prostate biopsy, but labs may be at increas…

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Pathologists in China, U.S. Linked By Digital Pathology

CEO Summary: It is one of the first clinical collaborations of this type to be anchored by use of digital pathology. Pathologists at the medical schools of the Second Affiliated Hospital of Zhejiang University in Hangzhou, China, and the University of California Los Angeles (UCLA) are exc…

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Prostate Biopsy Claims Affected by Policy Change

CEO SUMMARY: Quietly, with no fanfare and little advance public notice, the Medicare program is taking steps to change reimbursement policy for prostate biopsies. On August 7, 2012, Palmetto GBA adopted the new policy published on January 1, 2012, by the National Correct …

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Lawyer Questions CMS Over Inadvertent PT Errors

CEO SUMMARY: In the case of the Ohio State University Wexner Medical Center (OSUWMC) clinical lab, one attorney with long experience in CLIA regulatory matters says that the facts do not support the severe sanctions that CLIA officials may impose on a healthcare organization that is widel…

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