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Ten Myths of Lab Management That Led the Clinical Lab Industry Astray

Part One of a Special Series CEO SUMMARY: One of our most popular series ever was the “13 Perilous Parallels” of laboratory management. This four-part story appeared in 1996 and chronicled similar management strategies used by various national laboratories during the…

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Marketplace Rewards Those Who Get It Right

INTELLIGENCE BRIEFINGS IN THIS ISSUE REVEAL INTERESTING DEVELOPMENTS in our industry. I would agree with our Editor’s assessment that a new cycle of investment in laboratory companies is about to occur. There is also confirmation that laboratories which offer HMOs more than simple lab test data can…

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Developing Technology Expected To Fuel Boom In Anatomic Pathology

CEO SUMMARY: Established demographic trends point to a coming boom in the demand for anatomic pathology services. Greater number s of senior citizens, living longer lives, will raise the number of cancer cases diagnosed annually in the United States. New diagnostic technology will increas…

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DIANON Systems Nails Contract To Provide AP Services To Aetna

Sand sales efforts paid off for DIANON Systems, Inc. of Stratford, Connecticut. Last month the publicly-traded lab disclosed a new contract with Aetna/U.S. Healthcare. The pact, signed with Aetna and SmithKline Beecham Clinical Laboratories (SBCL), …

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Labs Entering New Cycle Of Evolution and Change

CEO SUMMARY: As some of the nation’s most astute and forward-looking lab executives prepare to gather in New Orleans for the fourth annual EXECUTIVE WAR COLLEGE, it is time to share our assessment of the laboratory and pathology industry. Recent events presage another profound …

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Lab Contracts Priced Below Cost May be Defined as Inducement

PROBABLY THE MOST SERIOUS problem in the lab industry is one of its own making. “Below cost” contracting is a practice where clinical laboratories offer the managed care company a price which is less than its cost to provide the testing. With laboratory overcapacity still abundant in many cities…

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First-Ever National Gathering Of Lab Sales Managers

CEO SUMMARY: Here’s a news-making event for the clinical laboratory industry: a first-ever national meeting of the country’s best sales and marketing managers. Scheduled as a new addition to the EXECUTIVE WAR COLLEGE on May 11-13, it’s an unprecedented opportunity for the nation’s…

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Quest to Pay $1.27 Billion To Buy SB’s Lab Division

CEO SUMMARY: Consolidation is the story of the clinical laboratory industry during the 1990s. The decade will close out with the granddaddy laboratory consolidation of them all! When Quest Diagnostics Incorporated completes its acquisition of SmithKline Beecham Clinical Laboratories later…

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Pathology Consolidation Offers Many Local Benefits

CEO SUMMARY: Consolidation of pathology practices can be a complex and drawn-out process. But it doesn’t have to be that way. During the 1990s, Bayless Pathmark of Cleveland grew from a two-man practice into a regional pathology resource numbering 22 pathologists and serving 10 hospital…

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IMPATH Creates Its Brand Of Value-Added Pathology

CEO SUMMARY: IMPATH Inc. is a pathology company with an interesting twist. It doesn’t compete directly with community hospital-based pathologists like some national AP providers. Instead, it offers AP services which supplement the capabilities of the local pathologist. The formula must …

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