“December 13, 1999 Intelligence: Late Breaking Lab News”

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Pathology Consultants of America, Inc. announced a promotion and a new hire. Bill McDowell was promoted to Vice President and Chief Development Officer. The new member to PCA’s management team is Edward D. Dooling. Dooling will be Vice President of Sales, Marketing and Managed Care. PCA, a pathology physician management company in Nashville, Tennessee, is preparing to intensify its sales and marketing efforts in the anatomic pathology community.


Perceptive readers will note that both McDowell and Dooling are veterans of DIANON Systems, Inc. in Stamford, Connecticut. Through the years, DIANON has earned a justified reputation for the productivity and professionalism of its national sales force. Apparently that accomplishment was not lost on Pathology Consultants of America, Inc., (PCA) as they recruited to fill these positions.


“Needle-free testing” is a phrase increasingly used to describe Epitope, Inc.’s OraSure® oral specimen collection technology. Consumers react favorably to a laboratory test which does not require drawing blood. OraSure is increasingly used to screen for HIV-1 antibodies. The public reaction to Epitope’s OraSure test assay demonstrates that direct-to-consumer marketing of laboratory tests and laboratory services is steadily increasing.


One source of lost client accounts for many laboratories is the acquisition of physician practices by hospitals and physician practice management companies. However, THE DARK REPORT has long predicted that hospitals would find the ownership of physician group practices to be a money-loser. (See TDR, December 4, 1995.) Columbia/HCA has already disclosed their intention to divest their physician practices. Now Tenet Healthcare Corp. will do the same. Tenet announced on November 30 that it was shedding its doctor management business and will take a charge in the third quarter. “We lose money on just about every [physician] practice, lots of money,” said Paul Russell, Senior Vice President at Tenet.


This issue of THE DARK REPORT provides coverage of Laboratory Corporation of America’s agreement to become a national laboratory provider with CIGNA. As we went to press, LabCorp announced a national managed care contract with Humana, Inc. of Louisville, Kentucky. LabCorp will be a preferred laboratory provider for Humana’s Employers Health Insurance Company (EHI). This agreement gives LabCorp access to EHI’s 1.4 million beneficiaries throughout the United States. The agreement also gives LabCorp access to Humana’s ChoiceCare Network.


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