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Medi-Cal Gets Tough on Low Lab Test Prices

CEO SUMMARY: This may be the most significant lab industry story of 2010, which has gone unreported until now. Starting in June and July, California’s Department of Health Care Services determined that between 10 and 30 labs had submitted what the agency considers to be false c…

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Who Wins and Who Loses With 51501 Enforcement

CEO SUMMARY: Assume that California’s Department of Health Care Services (DHCS) wins all challenges to enforcement of its interpretation of 51501(a). DHCS will get a one-time cash infusion as it collects money from labs which violated the state statute. But going forward, feder…

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How Could So Many Labs Violate California Law?

CEO SUMMARY: If a 40-year-old state law on Medi-Cal pricing was known to regulators and clinical laboratories alike, how did the legal and compliance departments of so many laboratories—staffed by some of the smartest legal minds in California and nationally—interpret the law…

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Calif. Officials Back Off From Suspending Labs

CEO SUMMARY: Early in the summer, California’s Department of Health Care Services (DHCS) delivered letters to between 10 and 30 laboratory companies notifying them that, effective immediately, it was withholding their Medi-Cal payments and was suspending each lab’s Medi-Cal l…

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Did Qui Tam Suit Trigger Medi-Cal Price Concerns?

CEO SUMMARY: It is easy to track backwards to understand why the California Department of Healthcare Services (DHCS) began aggressive enforcement of its interpretation of statute 51501(a) against a number of labs this summer. DHCS officials were given a full education and a roadm…

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Reading the Tea Leaves from 2010’s Events

EACH YEAR WHEN WE PRESENT OUR “Top Ten Lab Stories” for the year, I am always surprised at which forces for change emerged during the prior 12 months. In presenting THE DARK REPORT’S “Top Ten Lab Stories for 2010,” our editor has pointed out that four of these ten stories involved the feder…

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Our Top Ten Lab Stories Highlight Major Changes

CEO SUMMARY: What makes 2010 a watershed year for the laboratory testing industry is enactment of the 2,700-page Patient Protection and Affordable Care Act (PPACA). Even if parts of this bill are repealed, the remaining parts of the massive legislation will trigger major changes …

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FTC Opposes LabCorp’s Acquisition of Westcliff

CEO SUMMARY: On November 30, FTC commissioners filed an administrative complaint opposing Laboratory Corporation of America’s acquisition of Westcliff Medical Laboratories, Inc., on the grounds that it “violates antitrust laws and would lead to higher prices and lower quality…

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Time for Labs to Use Web To Recruit Med Techs

CEO SUMMARY: On the Web, clinical laboratories have a chance to identify potential new hires weeks or months in advance and to interact with potential job candidates in ways that were not possible in the past. An experienced lab recruiter explains how labs can benefit from these …

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Sonic Makes Big Play In AP With CBL Path Buy

CEO SUMMARY: With the announcement that it will purchase CBL Path, Inc., Sonic Healthcare, Ltd., becomes the latest public laboratory company to buy a sizeable presence in the national anatomic pathology (AP) marketplace. For CBL Path, founded in 2003 by ex-Dianon executives and …

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