“May 4, 1998 Intelligence: Late Breaking Lab News”

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Sales and marketing of laboratory services to physician offices is still feasible and cost-effective… if the effort is professionally managed and supported. Recently THE DARK REPORT was invited to speak at the national sales meeting of a public laboratory. Awards for 1997 sales production demonstrated that top people can still get great results. One sales representative generated $800,000 in new net revenues from physician offices in his territory for 1997.

Three sales reps each received a $75,000 bonus because they increased net revenues in their territories by $100,000 per month within a 24-month period ending December 31, 1997. These three sales reps boosted this lab’s revenues by $3.6 million per year during that period. Professional sales programs can still make a difference!

American Medical Laboratories of Chantilly, Virginia continues to beef up its management team. The latest addition is H.W. (Bud) Gandee, Jr. He will become Vice President of Hospital Alliances and Business Ventures. Bud has a distinguished career in consulting and managing hospital laboratories. He was with Allied Clinical Laboratories from its founding. Most recently he was with Laboratory Corporation of America.


The biggest just got bigger. Healthsouth Corp. paid $550 million to Columbia/ HCA Healthcare Corp. to acquire its 34 stand-alone surgicenters. When completed, Healthsouth will own 212 surgicenters, more than any other company in the United States. Anatomic pathology (AP) specimens generated by surgicenters represents a growing volume of AP work. Look for pathology PPMs to try and negotiate exclusive provider arrangements for the AP business originating with- in Healthsouth’s surgicenters.

Here’s a positive development for the clinical laboratory industry. According to Michael Arnold, Legislative Advocate for the California Clinical Laboratory Association (CCLA), the state Assembly Health Committee passed a bill to permit direct laboratory access by patients (AB2056). The bill would permit patients to order specified tests without a physician’s referral. The bill must be voted upon by the full assembly, then goes to the state senate for approval.

Meanwhile, a state judge in New York ruled that laboratory directors of a clinical laboratory that allegedly misread two Pap smears could be liable for damages, even though they did not personally review the slides in question. The judge’s ruling demonstrates how rapidly case law is altering traditional boundaries for the legal responsibility borne by laboratory managers.

What three states have the highest percentage of Medicaid managed care enrollment? If you said Tennessee (100.0%),Washington (99.8%), and Oregon (90.0%), then you understand how rapidly managed care is transforming Medicaid programs. Recent data from HCFA indicate that 40% of the nation’s Medicaid beneficiaries are now enrolled in managed care plans.


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