CEO SUMMARY: Throughout the United States, the growing number of high-priced, patent-protected specialty tests is eating into the laboratory budgets of many hospitals. At Hospital Consolidated Laboratories in Southfield, Michigan, this budget-busting threat triggered an innovative response. Now the lab uses ABNs to alert patients that they will be personally responsible to pay for such
Tag: joint venture hospital laboratories
CEO SUMMARY: Joint ventures and collaborative business relationships between hospital laboratories and commercial laboratories continue to be a difficult business model. Recent events in Seattle demonstrate the challenges and frustrations of establishing such ventures, then making them successful. One footnote to the Seattle story is the success of a regional laboratory network at grabbing market
TWO STORIES IN THIS ISSUE OF THE DARK REPORT DEMONSTRATE why regional laboratory networks are a business model which should be revisited by hospital laboratories with outreach programs.
Seattle provides a great example of how an existing laboratory network gives hospitals in that region an additional business option. PACLAB, an eight-hospital laboratory network, has steadily grown in
CEO SUMMARY: In Tennessee, the state’s Medicaid HMO plan has been at odds with Quest Diagnostics Incorporated, which is using the “free testing” strategy to expand its share of the market. In recent months, TennCare Select has taken active steps to insure its physicians understand that Quest Diagnostics is not a contract provider for “included
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 January 20, 2003, respectively.)
Financial Pinch In Detroit
In Detroit, the 130 hospital laboratories participating in Joint
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 systems to reduce errors. Unpredictable in many ways, 2002 set
CEO SUMMARY: This operational model for a collaborative regional laboratory organization makes “profit” irrelevant. Serving 30 hospitals in four Midwestern states, Michigan Co-Tenancy Laboratories is consistently expanding lab testing services, lowering costs, and emphasizing the laboratory’s contribution to better patient care in participating hospitals.
WORKING QUIETLY and without much fanfare during the last 17 years, a
WHAT MAKES HOSPITAL LABORATORY ADMINISTRATORS AND PATHOLOGISTS in
Michigan so willing to be both innovative and collaborative in creating sophisticated and financially successful regional laboratory organizations?
As you will read on pages 2-6, Michigan Co-Tenancy Laboratory (MCL), founded in 1997, is owned by 17 competing hospitals and provides shared testing services to more than 30 participating hospitals.
CEO SUMMARY: It’s a marketing scheme which public lab companies have quietly used for years. Now there is evidence that the use of “Waiver of Charges to Managed Care Patients” (free testing) seems to be on the increase, raising new questions about how and why competitive practices are changing. Will the two blood brothers use
CEO SUMMARY: It’s a business strategy that Quest Diagnostics Incorporated and Laboratory Corporation of America use in selected areas where they have lost exclusive managed care contracts to regional lab competitors. In order to retain access to a physician’s fee-for-service testing business, each lab company is willing to waive HMO testing fees in specific situations