June 12, 2006 “Intelligence: Late Breaking Lab News”

Many changes are unfolding across the laboratory industry, so we begin with some of the more significant developments involving people:

TRANSITIONS

•One of clinical pathology’s respected veterans is preparing to retire. Elkin Simson, M.D., Medical Director at the Center for Clinical Laboratories at The Mt. Sinai Hospital in New York City, will retire effective June 30, 2006. Dr. Simson plans to do some consulting as part of his retirement.

•Coming to The Mt. Sinai Hospital to assume some of Dr. Simson’s responsibilities will be Melissa Pessin-Minsley, M.D. Currently she is Chief of Clinical Laboratory Services at Cornell University–Weill Medical College in New York City.

•Ran Whitehead will become the new CEO of SED Laboratories, Inc., located in Albuquerque, New Mexico. Whitehead announced his resignation, effective at the end of June, as CEO of Oregon Medical Laboratories in Eugene, Oregon.

Spectrum Laboratory Network of Greensboro, North Carolina, confirmed that it has hired Vicki DiFrancesco to be Executive Vice President, Sales and Marketing. She will leave her current position at Specialty Laboratories, Inc. and start at Spectrum on June 26, 2006.

Digene Corporation of Gaithersburg, Maryland announced last week that Evan Jones, its Chairman and CEO, will retire at the end of the company’s 2007 fiscal year, but not until a successor has been appointed. Jones has served as Digene’s CEO for 16 years.

NEW LABORATORY ON AETNA CONTRACT

There’s big news at CBL Path, Inc., the fast-growing anatomic pathology company based in Ocala, Florida. CBL Path has signed a con- tract with Aetna, Inc. and will become an approved provider for the area around the New York metropolitan area, including Long Island, all of New Jersey and parts of Pennsylvania. The contract became effective after June 1, 2006. CBL Path’s contract with Aetna is structured with the same basic terms as Aetna’s contracts with the two national laboratory companies.

MORE ON: CBL Path

CBL Path is assembling a network of affiliated clinical laboratories to perform testing on Aetna-insured patients in the plans covered by the new contract. CBL Path will receive the capitated payments and will disburse funds to the local laboratories participating in its network. Aetna’s interest in adding providers shows that opportunity still exists for smaller laboratories to gain provider status, if they can demonstrate innovative ways they can benefit the largest health insurance companies.

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