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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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Top-Performing Labs at Executive War College

CEO SUMMARY: Once again, Executive War College time approaches. Scheduled for May 11-12, 1999 at the New Orleans Sheraton, this year’s roster of innovative laboratories promises to provide valuable insight about winning strategies. An expanded program offers a lab industry first: a know…

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HMO Membership Shows First-Ever Decline in 1998

CEO SUMMARY: One of the most closely-tracked surveys of health cost trends was released last week. William H. Mercer Inc.’s report revealed two significant facts. One, enrollment growth in HMO/POS plans actually declined for the first time. Two, costs rose at the fastest rate in five ye…

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DIANON Wins Contract, Buys Kyto Meridien Lab

CEO SUMMARY:Anatomic pathology took another forward step on the managed care battleground. DIANON Systems, Inc. gained status as a provider of anatomic pathology services under the new master agreement announced by Oxford Health Plans. DIANON’s success demonstrates that anatomic patholo…

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Health Insurance Costs Begin New Upward Spiral

CEO SUMMARY: Health insurance costs are climbing again for the nation’s employers. Premium increases for 1999 average in excess of 10%. After losing money in 1997 and 1998, managed care companies are serving stiff premium increases to their customers. For clinical laboratories, the impa…

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SBCL Inks National Pact With Aetna US Healthcare

CEO SUMMARY: As a corporate strategy, SmithKline Beecham Clinical Laboratories wants national contracts and exclusive provider status. The Aetna U.S. Healthcare agreement is SmithKline’s latest victory. Both companies are moving rapidly to implement the contract. In many cities where Ae…

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SmithKline’s Strategies Now Delivering Benefits

CEO SUMMARY: Business strategy does make a difference. However, it sometimes takes years to appreciate the wisdom of choosing one strategy over another. In the case of SmithKline Beecham’s lab division, the decision to become sole-source provider to the nation’s largest HMOs may event…

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Unilab’s Bid To Buy Meris Will Shake Up California

CEO SUMMARY: More laboratory overcapacity may be removed from the California marketplace if Unilab purchases Meris Laboratories. Unilab’s offer to buy Meris must be cleared by the bankruptcy court and other bidders may surface during the coming weeks. These events are a reminder that fi…

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