September 26, 2011 “Intelligence: Late Breaking Lab News”

Here’s a laboratory with what may be one of the world’s biggest accounts receivable problems. In South Africa, the National Health Laboratory Services (NHLS) says it is owed $1.8 billion Rand (about US $214 million) from its client accounts. As reported by a regional television station (eyewitness- in the country, South Africa’s various provincial health departments have not been paying their lab testing bills. NHLS is the exclusive contractor for clinical laboratory testing that originates in all government hospitals and clinics in South Africa.

ADD TO: Big Accounts Receivable

In a briefing to the South African parliament’s health portfolio committee, NHLS’ Chief Executive Officer, Saggie Pillay, stated that the two provinces of Gauteng and KwaZulu-Natal owe his lab a total of 2 billion Rand. Pillay said that, because of this huge unpaid accounts receivable balance, his laboratory has been unable to update aging equipment and infrastructure at the 260 laboratories his organization operates across all of South Africa.


It is billed as the “largest laboratory contract in the world” by the National Health Services Greater Glasgow and Clyde Trust. As construction proceeds on a consolidated pathology “super lab” in Glasgow, Abbott Laboratories, Inc., has been awarded a seven-year contract worth £100 million (US $154.6 million). Abbott will be responsible to provide what is described as “round- the-clock lab services across the west of Scotland giving rapid testing and results.” This is the second similar contract Abbott has won in Glasgow.


  • Kathy Teitzel has been appointed the new General Manager for PacLab Network Laboratories, based in Renton, Washington. She came to PacLab from Quest Diagnostics Incorporated and served in management prior to that with several clinical laboratory companies in the Seattle region.
  • Health Network Laboratories of Allentown, Pennsylvania, recently selected Sherri Dobis to be Vice President, Business Development. Dobis was formerly an executive with Novation.

Dark Daily Update

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…the publication of a draft federal rule that would amend CLIA and HIPAA requirements and mandate that laboratories send lab test data directly to patients as well as

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