March 16, 2009 “Intelligence: Late Breaking Lab News”

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In the United Kingdom, there is an interesting development regarding anatomic pathology and clinical laboratory services. The trust which operates the famous 986-bed Guy’s Hospital and 957-bed St. Thomas’ Hospital has entered a joint venture with Serco Group plc. Effective February, 1, Serco now manages the 50-50 joint venture, which is called GSTS Pathology. All pathology and laboratory services for the two hospitals are managed by Serco. The 10-year management contract is valued at £250 million (U.S.$349 million).

MORE ON: Serco JV

Several aspects of this transaction are noteworthy. First, it is unusual for the UK’s National Health Service (NHS) to outsource laboratory services in an arrangement like this. Second, the NHS did not select a laboratory partner, but chose Serco, which is a management company that holds other health management contracts with the NHS. Third, Serco stated that “In the wider market, GSTS Pathology will offer a range of innovative solutions for delivering high quality efficient pathology services suitable for other NHS organizations, the private sector and for customers outside of the UK.” That indicates how Serco hopes to leverage this joint venture into additional laboratory and anatomic pathology arrangements.

TRANSITIONS

  • Laboratory Corporation of American announced that its new Chief Medical Officer is Mark Elliott Brecher, M.D. He formerly served as Vice Chair of the Department of Pathology and Laboratory Medicine at the McClendon Clinical Laboratories, University of North Carolina Hospitals.
  • Fast-growing XIFIN, Inc. of San Diego, California has two new additions to its executive team. Joining XIFIN as Chief Financial Officer is Steve Zaboni. He has a strong diagnostics background, having served in executive positions w ith AviaraDx, Arcturus Bioscience, Behring Diagnostics, and Boston Scientific.
  • XIFIN’s new Vice President of Marketing is R. William (Bill) Taylor. His career has been in the high tech industry, including positions with Accelrys, Inc. and IBM’s software group.

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