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Number of Hospital Deals Declines Again in 2000

CEO SUMMARY: Probably the single biggest contributing factor to consolidation of hospital laboratories is when new owners or new healthcare systems take control of a hospital. For 2000, merger and acquisition activity in the hospital industry declined in 2000 by 40%. A total of 318 hospit…

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Business Premises Underlying Lab Industry Dynamics

This chapter addresses the characteristics of the laboratory industry which define the starting point for changes and ongoing evolution. The eight business premises listed in this White Paper describe unique situations which directly influence the ability of clinical laboratories to serve the medical…

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Strategic Business Failures Of The Laboratory Industry During the 1990s

If analysis is to be accurate and objective, it must recognize and praise successful accomplishments while at the same time recognizing and criticizing failures. Human nature being what it is, however, criticism of failed business decisions is painful and bound to generate denials by the parties invo…

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Competitive Dynamics In the Laboratory Testing Marketplace

This section of the White Paper deals with the marketplace for laboratory services. For brevity and clarity, I will address five components: 1) independent commercial laboratories; 2) hospital-based laboratories; 3) esoteric, reference, and specialty testing laboratories; 4) anatomic pathology lab- o…

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Year’s Ten Biggest Stories Reveal Modest Changes

CEO SUMMARY: In many ways, 2000 was a relatively quiet year for laboratory organizations. This list of the ten biggest stories in the lab industry for 2000 demonstrates that the most innovative laboratory organizations in the United States are “raising the bar†for service and quality…

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Ortho-Clinical Diagnostics Embraces New Testing Technology

CEO SUMMARY: Despite a decade of consolidation, competition among the world’s largest diagnostics manufacturers remains intense. In response to this competition, Ortho-Clinical Diagnostics (OCD) is preparing a variety of new products and services for its clinical laboratory customers. I…

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Successful Specialty IPO Can Open Door for Others

CEO SUMMARY: It’s no secret that a handful of laboratory companies would like to complete an initial public offering (IPO). If Specialty Labs’ public offering goes well, expect these lab companies to bring their own stock offerings to the public equity markets. As the number of public…

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MCOs Asking For More Lab Test Information

CEO SUMMARY: During the past 12 months, managed care companies in Michigan have increased the quantity and quality of the laboratory test information they want from their laboratory providers. Once again, the marketplace is raising the bar for competitive laboratory services. In response,…

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HMO Decline Predicted As PPOs Gain Enrollment

CEO SUMMARY: Managed care analyst Michael Casey believes HMO enrollment will peak, possibly in 2000. PPOs (preferred provider organizations) are gaining members at an increasing rate. Within California, the provider revolt over deficient reimbursement levels is escalating. Orange County 

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Dr. Bruce Friedman Identifies Market Dynamics Driving Evolution of Lab Information Services

CEO SUMMARY: Probably no one is better positioned to identify the evolution of laboratory information services than Bruce Friedman, M.D., Professor of Pathology at the University of Michigan Medical School in Ann Arbor. For almost 20 years, he has hosted the pre-eminent meeting in laborat…

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