CEO SUMMARY: Sonic Healthcare, Ltd., announced that it would pay $540 million—a multiple of 9.2 times EBITDA—to acquire Aurora Diagnostics, the anatomic pathology company based in Palm Beach Gardens, Fla. Sonic will gain 32 pathology practice sites and add 220 pathologists to its network of regional clinical and pathology laboratories. The transaction marks the end
Tag: pathology companies
ONE OF THE MORE CURIOUS SITUATIONS IN THE LAB INDUSTRY TODAY is the story of Aurora Diagnostics of Palm Beach Gardens, Fla. Even as it loses money, it continues to acquire pathology group practices.
Aurora recently issued its earnings report. For 2016, it disclosed a net loss of $29 million, with revenue of $284 million. This
CEO SUMMARY: In the United States, medical labs have long recognized that paying over-market rates to lease phlebotomy space in physicians’ officers is an inducement and a violation of federal anti-kickback laws. In Australia, a law in 2010 that removed the cap on what labs could pay to lease phlebotomy space in physicians’ offices caused
CEO SUMMARY: Consultants in Laboratory Medicine of Greater Toledo was sold to Aurora Diagnostics last month. CLM’s president said that, as an ancillary service, pathology has little appeal to hospital administrators who want to cut costs as quickly as possible, and all hospital-based services are targets for cost reduction. Therefore, CLM sought a partner that
CEO SUMMARY: There’s a day of reckoning on the way for the traditional business model of the private pathology group practice. At most risk are smaller pathology groups that typically have five or fewer pathologists. Blame it on the reduced prices that Medicare and private insurers are paying for pathology services. Another factor is the
CEO SUMMARY: Are clinical labs and pathology groups ready for the end of fee-for-service reimbursement? That’s just one important question that will be answered at the upcoming Executive War College on Lab and Pathology Management that will take place in New Orleans on April 29-30. The American healthcare system is undergoing unprecedented transformation and sessions
CEO SUMMARY: Professional investors are smart with their money. Thus, it is no surprise that clinical lab and pathology companies owned by private equity firms are the first to be sold or closed. These investors are acting in response to the cumulative negative financial impact of recent cuts to lab test prices. Even more worrisome
THERE IS A NEW PLAYER in the market for anatomic pathology laboratory information systems (APLIS). This gives pathology groups a new option when it is time to upgrade or replace their existing APLIS.
It also brings a new competitor into the existing market for anatomic pathology (AP) software. In recent years, the dominant players in that
LEICA BIOSYSTEMS TO ACQUIRE APERIO
FOR THE SECOND TIME IN AS MANY YEARS, a global leader in histology systems and products has announced that it will acquire one of the leading digital pathology companies. This time it is Leica Biosystems of Nussloch, Germany, which will purchase Aperio Technologies, Inc., of Vista, California.
Founded by Dirk Soenksen in
LABORATORY CONSOLIDATION continues in Australia with news that Sonic Healthcare Limited of Sydney, Australia, has agreed to acquire three clinical laboratory business units from competitor Healthscope, Ltd., of Melbourne, Australia.
The acquisition was announced on May 16. In three separate transactions, Sonic will pay A$100 million (US$99.4 million) for the Healthscope pathology operations in Queensland, Australian