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Consider Tenet-SBCL Deal As Timely Wake-Up Call

CEO SUMMARY: Expect the Tenet-SBCL contract announcement to trigger similar deals during the next 18 months. Competition and the need to gain economic advantage will drive some hospital CEOs to turn their laboratories over to commercial laboratory partners. The number of such joint ventur…

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Market Forces Cause Detroit’s Lab Network To Launch Operations

CEO SUMMARY: Joint Venture Hospital Laboratories’ success rests on an essential fact: it exists to respond to marketplace demands. The network links laboratory operations of 24 hospitals owned by eight integrated delivery systems in Greater Detroit. Not only is it the oldest continuousl…

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No Slice of the Pie for Pathology and Laboratory

Managed care appears to be ready to minimize pathology in the same fashion as it minimized the clinical laboratory. Within the laboratory industry, it is widely recognized that most managed care plans reimburse laboratory services at levels which are inadequate to cover the full cost of testing. Now…

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1997’s Top Ten Lab Stories Predict New Directions

CEO SUMMARY: Events during 1997 reveal that the laboratory industry continues to undergo fundamental change. Yet even amidst the industry’s downsizing, selected laboratory organizations continue to flourish. Here is THE DARK REPORT’s annual look at top stories for the year. A careful …

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To Protect Pathology Profits: Understand Managed Care

CEO SUMMARY: On November 8, 1997, THE DARK REPORT convened a private symposium restricted only to pathologists. The sole purpose of this event was to identify how pathologists could preserve and enhance their income. Within the confidential setting of a plush resort in Scottsdale, Arizona…

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Louisiana Reference Lab Purchased By Dynacare

CEO SUMMARY: General Health System of Baton Rouge decided to “cash in” the capital value of its consolidated laboratory organization by selling it to Dynacare. It will use the money for other corporate projects. This sales transaction validates that there is still considerable value t…

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Consolidation Within the Auto Industry

As our system of healthcare evolves in this country, I am continually amazed at how many market dynamics we share with other industries. Take the issue of too many hospital beds and too much laboratory capacity. With inpatient utilization declining, with laboratory reimbursement shrinking, both hospi…

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“State of Lab Industry” Reveals Radical Change

CEO SUMMARY: Pick your trend: declining reimbursement, consolidation, clinical integration, downsizing, and capitated reimbursement. These trends all continued to shape the way laboratories organized to provide services. But 1997’s wildcard was the federal government. Between investigat…

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Tenet, SBCL Discussing 33 Hospital Lab Contract

CEO SUMMARY: Tenet Healthcare’s decision to entertain proposals for improving laboratory operations in its Southern California division triggered a year-long discussion with national laboratories. If a deal results, it would represent one of the largest “re-engineering” projects bet…

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Regional Growth Strategy Guides Presbyterian Labs Services

CEO SUMMARY: Here’s a consolidated laboratory organization serving six hospitals and an extensive outreach program. As described in the first installment of this two-p art series, Presbyterian Laboratory Services actively reshaped itself into a well-run asset for its parent healthcare s…

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