“February 14, 2000 Intelligence: Late Breaking Lab News”

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Interesting things are afoot at Dynacare’s joint venture in Houston, Texas with Memorial Hermann Healthcare System. Bill Pesci, Chief Operating Officer of Dynacare Hermann Laboratories, resigned in January to take a new position on the east coast. That seems to have triggered an exodus of the management team in Houston. Within the last three weeks, resignations were received from the Chief Financial Officer, the Sales and Marketing Director, the Billings and Collections Manager, the Controller, the IS Manager, and the Human Resources Director. It is highly unusual to turn over this many key managers in such a short period of time.


It’s expected that Pesci’s replacement will be John Smith, who worked at National Health Labs with Dynacare-U.S. executive Bert Koch. Meanwhile, Bill Pesci will become Executive Director of the Carolina Lab Network, based in Charlotte, North Carolina. This is a 21-hospital lab consortium.


Although Quest Diagnostics Incorporated has made no formal announcement concerning its consolidation plans for the Quest and SmithKline Beecham Laboratories (SBCL) in St. Louis, there are plenty of rumors. Grapevine buzz says that Quest intends move all St. Louis testing to its Schaumberg laboratory located next to Chicago’s O’Hare Airport. Quest’s St. Louis lab would be shuttered and only drugs of abuse testing would remain at the SBCL St. Louis facility.


It’s estimated that about 16,000 requisitions per night would be shifted from Quest’s St. Louis labs to Chicago. At $28 per req, that adds another $107 million dollars per year in testing to Quest’s Schaumberg laboratory. Should these rumors prove true, there will certainly be a glut of med techs in the St. Louis marketplace as former Quest and SBCL laboratorians begin searching for new jobs.

Remember the concept of industry consolidation? It’s still an ongoing trend. Latest healthcare industry to under-go a new wave of consolidation is the pharmaceutical industry. Pfizer Inc. and Warner-Lambert Co. will merge in a $90 billion deal. That announcement was followed the news that Glaxo Wellcome PLC and SmithKline Beecham PLC would combine. This transaction is valued at $76 billion. Analysts predict more consolidation among big pharma firms. In particular, Abbott Laboratories, Inc. is believed to be vulnerable to a take-over due to its depressed stock price.


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