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Expect Changes in How Calif. Labs Set Test Prices

CEO SUMMARY: What a difference two years makes. Back in April 2009, when then-Attorney General Jerry Brown joined the whistleblower lawsuit alleging that seven or more California lab companies had violated state law on pricing provider services, the popular wisdom among lab execu…

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Solstas Lab Partners, DNA Direct, Pathology, Inc., Slone Partners, PAML

SPECTRUM-CARILION NOW WILL BE CALLED SOLSTAS LAB PARTNERS IT IS THE NEXT STEP IN THE INTEGRATION of Spectrum Laboratory Network and Carilion Laboratories. Effective February 1, 2011, their combined businesses will use the name Solsta…

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Discounted Lab Prices Become Issue in California

CEO SUMMARY: For decades, California’s lab testing market has been considered the Wild West because clinical lab companies have felt relatively free to offer deeply-discounted prices to expand market share and take business away from competitors. Now these discounted pricing pr…

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December 27, 2010 “Intelligence: Late Breaking Lab News”

As the year ends, a bit of humor is in order and the recent dust-up involving Michael Moore’s healthcare documentary, titled “Sicko,” and a State Department cable posted on wikileaks.com may be just the item. About a week ago, The Guardian newspaper in Manchester, England, rep…

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Did Qui Tam Suit Trigger Medi-Cal Price Concerns?

CEO SUMMARY: It is easy to track backwards to understand why the California Department of Healthcare Services (DHCS) began aggressive enforcement of its interpretation of statute 51501(a) against a number of labs this summer. DHCS officials were given a full education and a roadm…

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How Could So Many Labs Violate California Law?

CEO SUMMARY: If a 40-year-old state law on Medi-Cal pricing was known to regulators and clinical laboratories alike, how did the legal and compliance departments of so many laboratories—staffed by some of the smartest legal minds in California and nationally—interpret the law…

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Calif. Officials Back Off From Suspending Labs

CEO SUMMARY: Early in the summer, California’s Department of Health Care Services (DHCS) delivered letters to between 10 and 30 laboratory companies notifying them that, effective immediately, it was withholding their Medi-Cal payments and was suspending each lab’s Medi-Cal l…

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FTC Opposes LabCorp’s Acquisition of Westcliff

CEO SUMMARY: On November 30, FTC commissioners filed an administrative complaint opposing Laboratory Corporation of America’s acquisition of Westcliff Medical Laboratories, Inc., on the grounds that it “violates antitrust laws and would lead to higher prices and lower quality…

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Our Top Ten Lab Stories Highlight Major Changes

CEO SUMMARY: What makes 2010 a watershed year for the laboratory testing industry is enactment of the 2,700-page Patient Protection and Affordable Care Act (PPACA). Even if parts of this bill are repealed, the remaining parts of the massive legislation will trigger major changes …

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October 25, 2010 “Intelligence: Late Breaking Lab News”

Southern California’s always-crazy lab testing marketplace has a new laboratory competitor. In recent months, Richard Nicholson re-entered the business by acquiring West Pacific Medical Laboratory, based in Santa Fe Springs, California. He is assembling a team of experienced profes…

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