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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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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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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 Even if parts of this bill are repealed, the remaining parts of the massive legislation will trigger major changes …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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October 4, 2010 “Intelligence: Late Breaking Lab News”

In Hawaii, two competing clinical laboratory companies have joined forces to save a medical technologist (MT) training program from closure. Together, Clinical Laboratories of Hawaii, LLP (CLH–owned by Sonic Healthcare), and Diagnostic Laboratory Services, …

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California Pathologist Wins Medi-Cal Pay Case

CEO SUMMARY: It was a case that stretched back several years. Medi-Cal officials, wanting to pursue collection of what it deemed overpayments, claimed that the pathologist who was on the license of two defunct lab companies as medical director was personally liable for the $6.37 …

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More Hospitals Consider PAML’s Lab JV Model

CEO SUMMARY: One joint venture at a time, PAML is convincing hospital and health system CEOs about the benefits of building a thriving laboratory outreach business. For their part, facing budget cutbacks and a decline in Medicare reimbursement, more hospital administrato…

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Two New Lab Companies Will Open in L.A. & Denver

CEO SUMMARY: It is unprecedented for two multi-billion-dollar health systems to announce laboratory testing outreach joint ventures just days apart. In Los Angeles, Providence Health & Services will partner with PAML to start a commercial lab company in the San Fernando Valle…

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September 13, 2010 “Intelligence: Late Breaking Lab News”

Researchers at North Carolina State University are developing a method that might make it possible to diagnose and treat cancer through the use of special microneedles they developed. NCSU researchers use the microneedles to deliver nanoscale dyes based on quantum dots to locations u…

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