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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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Discounted Lab Prices Become Issue in California

CEO SUMMARY: For decades, California’s lab testing market has been considered the Wild West because clinical lab companies have felt relatively free to offer deeply-discounted prices to expand market share and take business away from competitors. Now these discounted pricing pr…

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Any Future for Loss-Leader Lab Pricing?

OUTSIDE OF CALIFORNIA, few pathologists or laboratory administrators are aware of the unfolding enforcement campaign that was initiated by the state’s Medi-Cal program. At issue is a decades-long practice of offering providers low laboratory test prices—in some cases well below the Medi-Cal fee …

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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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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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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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October 25, 2010 “Intelligence: Late Breaking Lab News”

Southern California’s always-crazy lab testing marketplace has a new laboratory competitor. In recent months, Richard Nicholson re-entered the business by acquiring West Pacific Medical Laboratory, based in Santa Fe Springs, California. He is assembling a team of experienced profes…

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Q3 Earnings Are Mixed Bag For the Two Blood Brothers

IF THERE IS A NOTABLE EVENT in the laboratory testing marketplace during 2010, it is that one of the nation’s billion-dollar lab testing behemoths has reported three consecutive quarters of declines in the number of test requisitions it handled, when compared to the same quarters during 2009. In t…

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October 4, 2010 “Intelligence: Late Breaking Lab News”

In Hawaii, two competing clinical laboratory companies have joined forces to save a medical technologist (MT) training program from closure. Together, Clinical Laboratories of Hawaii, LLP (CLH–owned by Sonic Healthcare), and Diagnostic Laboratory Services, …

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California Pathologist Wins Medi-Cal Pay Case

CEO SUMMARY: It was a case that stretched back several years. Medi-Cal officials, wanting to pursue collection of what it deemed overpayments, claimed that the pathologist who was on the license of two defunct lab companies as medical director was personally liable for the $6.37 …

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