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OIG May Be Investigating AP Laboratory Condos

CEO SUMMARY: Attorneys for one of the companies which sells and manages anatomic pathology condominium laboratories have recently sent correspondence to owners of these lab condos. This correspondence discloses that the Office of the Inspector General (OIG) is examining the company. Knowl…

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Labs in United Kingdom Pressured to Change

CEO SUMMARY: Across the United Kingdom, the physical lay-out, instrumentation, and operation of laboratories is very close to that of laboratories in the United States and Canada. The source of most differences is how the healthcare system in the United Kingdom funds clinical services and…

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Year-end Financials Released For Quest, LabCorp & LabOne

In RECENT WEEKS, public laboratory companies have released earnings reports for the year-ending December 31, 2004. It was generally a good year for the three largest lab companies that have a major emphasis on providing lab testing services to office-based physicians. In this year’s review, THE DA…

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“March 28, 2005 Intelligence: Late Breaking Lab News”

For lab managers and pathologists tracking the growth of e-commerce, here’s a revealing statistic. The Federal Reserve Bank released numbers showing that 2003 was the first year where the number of electronic payment transactions exceeded the number of trans- actions paid by check….

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Spectrum Owns MEDex, Comments on Trends

CEO SUMMARY: Spectrum Laboratory Network recently completed its acquisition of MEDex Laboratories, Inc. of Kingsport, Tennessee. It is becoming a regional laboratory powerhouse, challenging Laboratory Corporation of America in North Carolina and establishing a sales base in Atlanta, long-…

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Profit Squeeze Pressures Specialty Laboratories

CEO SUMMARY: Despite much success and milestones at Specialty Laboratories during the past 36 months, it has yet to achieve the most important goal of all: net profits. One reason is familiar to all laboratory administrators and pathologists: with its existing fixed overhead and cost stru…

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Medicaid’s Exploding Costs Threaten Tight State Budgets

MEDICAID FINANCING in Tennessee has reached a crisis point. But Tennessee is not alone. Soaring Medicaid costs are stressing state budgets across the country. According to figures issued by the National Association of State Budget Offices, total state and federal spending on Medicai…

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National Reference Labs Undergoing Changes

CEO SUMMARY: Maybe it’s a coincidence. More likely it is a response to changes in the reference/esoteric marketplace. Specialty, Esoterix, ARUP, and Mayo have each recently reassessed their core strategies and are shifting their business emphasis. Because three of these four companies a…

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Five Lab Acquisitions Over the Past Ten Weeks

CEO SUMMARY: Many lab executives and pathologists will be surprised to learn that five independent laboratory companies were acquired between December 1, 2004 and February 11, 2005. Only one acquisition was announced to the public. The other four were private sales and both buyers and sel…

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Review of 2004 Lab Sales Identifies Buyer Interest

CEO SUMMARY: Laboratory acquisition activity was surprisingly high during 2004. One reason is that new buyers appeared in the marketplace. However, all buyers have specific acquisition criteria. When a selling lab meets that criteria, it can expect multiple bidders and a strong purchase p…

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