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Will “Free Testing” Ploy Financially Affect Labs?

CEO SUMMARY: It’s a marketing scheme which public lab companies have quietly used for years. Now there is evidence that the use of “Waiver of Charges to Managed Care Patients” (free testing) seems to be on the increase, raising new questions about how and why competitive practices a…

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Big Premium Increases Drive Higher Profits at Nation’s HMOs

EVEN AS EMPLOYERS COMPLAIN about spiraling healthcare costs, the nation’s biggest health insurers are enjoying robust profits. That brings up the interesting question about whether providers, including laboratories, can get better pricing during the next year, since HMOs are again profita…

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Two New Public Labs Launch Operations in FL

CEO SUMMARY: In 49 states, independent commercial laboratory companies are disappearing. But that’s not the case in Florida. In recent months, two new public laboratory companies completed organizational steps and now offer diagnostic testing services. Both companies are starting small,…

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Is Physicians’ Office Testing Evolving Toward an Oligopoly?

CEO SUMMARY: One of the most unpopular industries with consumers is the airline industry. At the national level, it is an oligopoly—dominated by seven carriers. But in many cities, it is a monopoly, with one airline flying 80% of the seats in and out of town. Ongoing consolidation of re…

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Quest Pays $1.1 Billion To Acquire Unilab Corp.

CEO SUMMARY: Quest Diagnostics Incorporated is showing its muscle. The dust had hardly settled on its $500 million acquisition of American Medical Laboratories when the lab industry’s behemoth announced that it would pay $1.1 billion to buy Unilab, by far the largest lab testing company…

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Why Can’t Hospital Laboratories Collaborate?

MOST PEOPLE KNOWLEDGEABLE ABOUT THE INNER WORKINGS of the clinical laboratory industry generally agree that hospital laboratories possess inherent advantages over commercial laboratories—anytime a hospital lab outreach program is organized properly and marketed professionally. Certainly the manage…

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Michigan Lab Network Wins Major HMO Deal

CEO SUMMARY: By winning the contract for Health Alliance Plan (HAP), Joint Venture Hospital Laboratories (JVHL) captured another major exclusive managed care contract for lab testing services in Southeast Michigan. Its victory demonstrates that local hospital lab outreach programs can com…

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Clinical Labs Discover Benchmarking

IN OUR MANY YEARS OF SERVICE to the clinical lab industry and the pathology profession, THE DARK REPORT has consistently been first to identify important trends and explain their relevance to those responsible for managing the nation’s laboratories. Back in 1995, we predicted that the (then) thre…

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2001’s Ten Big Stories Presage Future Direction

CEO SUMMARY: During 2001, few labs found themselves under intense pressure to change or react to dramatic events in the healthcare marketplace. Like 2000, this past year was marked by evolutionary progress, not revolutionary change. However, continuing signs indicate that consumers will p…

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Quest Buys New Jersey Lab, Lab Investors Cash In Stock

THERE’S LOTS OF BUYING and selling taking place among the public laboratory companies. On one side of the spectrum, Quest Diagnostics Incorporated announced the acquisition of Clinical Diagnostic Services, Inc., a private laboratory company based in Englewood, New Jersey. Clinic…

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