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Payer Consolidation: United Buys Pacificare

CEO SUMMARY: For the second time in nine months, a health insurer company has spent around $9 billion to grow by acquisition. This time, it is UnitedHealth Group purchasing PacifiCare Health Systems. These types of deals impact local labs and pathology groups as existing contracts expire….

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DOJ Sends Subpoenas To Quest & LabCorp

CEO SUMMARY: In Newark, New Jersey, the Office of the U.S. Attorney served subpoenas to each of the two blood brothers, seeking information on “capitation and risk-sharing arrangements with government and private payers for the years 1993 through 1999.” At this point, little is known …

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Patient ABNs Can Save On Expensive Send-outs

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 respons…

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LIS Market Evolving To Serve New Needs

CEO SUMMARY: Ongoing reimbursement declines, coupled with other key factors, are pushing labs to seek new capabilities for their laboratory information systems (LIS). Another influence is the growth of molecular diagnostic programs in hospital labs. Molecular testing places unique demands…

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“Coming Out” Party In Atlanta for IQLM

CEO SUMMARY: It was like a debutante ball for the fledgling Institute for Quality in Laboratory Medicine (IQLM). Over three days, thought leaders in healthcare and laboratory testing tackled the issue of how laboratory medicine can improve patient safety and contribute to higher-quality h…

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JCAHO, NQF CEOs Speak to Lab’s Future Role

CEO SUMMARY: What an opportunity! On the same podium were the presidents of both the Joint Commission on Accreditation of Healthcare Organizations (JCAHO) and the National Quality Forum (NQF), specifically to speak about laboratory medicine’s role in the evolution of the nation’s heal…

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Ramifications From The “H2N2 Virus Affair”

CEO SUMMARY: Here’s the story, with new details, about how a patient sample, cross-contaminated with a “deadly” strain of influenza virus from a proficiency test kit, triggered alarm bells at the highest levels of public health in Canada, the United States, and the World Health Orga…

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Why Is There Crime In the Lab Industry?

CEO SUMMARY: Since 1991, there have been criminal indictments or criminal convictions of four former CEOs of public lab companies. Given the limited number of public lab companies active in the market at any moment in time, this is a remarkably high rate of criminal behavior. Moreover, th…

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Ex-IMPATH Executives Face Criminal Charges

CEO SUMMARY: With the announcement by Federal prosecutors of criminal and civil actions against a total of seven ex-IMPATH executives, IMPATH becomes the laboratory industry’s worst criminal scandal. Federal prosecutors contend these executives, during their employment at IMPATH, engine…

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Medicare Managed Care Is Poised to Double in Size

MEDICARE MANAGED CARE PLANS are poised to double in size. This can be both a threat and an opportunity for regional laboratories. The Center for Medicare and Medicaid Services (CMS) recently reported that it had received 141 applications for new local Medicare Advantage plans for 20…

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