March 24, 2008 “Intelligence: Late Breaking Lab News”

Things are happening under new ownership and management at DCL Medical Laboratories LLC., based in Indianapolis, Indiana. DCL announced a strategic partnership with Third Wave Technologies Inc., a molecular diagnostics company in Madison, Wisconsin. In the partnership, DCL will serve as a product development and marketing partner for Third Wave for its emerging diagnostic technologies. DCL, with its existing base of client physicians and sales force, can introduce new diagnostic assays into the market. That can help Third Wave evaluate clinical acceptance for its new assays and other products.


First quarter revenue grew 24% at Bio-Reference Laboratories, Inc. (BRLI), of Elmwood Park, New Jersey. The company had Q1 net revenue of $66.9 million, compared to $53.7 million it reported in Q1 2007. Patient volume was up significantly. For Q1 2008, BRLI served 962,000 patients, an increase of 15% over the Q1 2007 number of 836,000 patients. Average revenue per patient climbed to $68.83 in the current quarter, compared to $63.21 for the same quarter last year.


Bio-Reference Laboratories has benefited from two business strategies. One, it is a tough regional competitor in the Greater New York City Metropolitan area and has clearly captured its share of new accounts as labs fight for UnitedHealth’s lab testing business in the region. Two, it offers specific services in esoteric and reference testing that are marketed nationally. Because these tests are reimbursed at higher rates, BRLI is enjoying an increase in its average revenues per accession.


According to an East Bay Business Times article on March 13, 2008, Stanford Hospital & Clinics of Palo Alto, California, is considering selling its laboratory out- reach program. Gary Migdol, Director of Communications for Stanford Hospital & Clinics, was quoted as saying “There have been concerns about the financial viability of the outreach lab. There are a number of companies providing high-volume laboratory services at competitive costs nationally.”

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