United Health Disrupts the National Contract Status Quo Between the Two Blood Brothers

It was major news yesterday when the public learned that UnitedHealth Group Incorporated had awarded an exclusive, 10-year national contract for laboratory testing services to Laboratory Corporation of America. UnitedHealth is the nation’s second largest health insurance company, with approximately 26 million beneficiaries. LabCorp says it should see an additional $3 billion in revenue during the 10-year term of its pact with UnitedHealth. This new contract takes effect on January 1, 2007....

CIGNA HealthCare Renews National Lab Contract with LabCorp

Laboratory Corporation of America (NYSE: LH) announced yesterday that it had executed a multi-year clinical laboratory services contract renewal with CIGNA HealthCare (NYSE: CI). An important facet of the renewal, noted in LabCorp’s press release, is that “LabCorp will no longer be contractually restricted from marketing that the Company is a fully participating, in-network provider to CIGNA HealthCare for all services in all major markets.” “This agreement is important because we will...

What You Told Us: Results from the Dark Daily Survey

Thanks to everyone who participated in our first Dark Daily reader survey earlier this month. We got a fantastic turnout for our first survey and got some great feedback which we will certainly be able to use to improve Dark Daily. As promised, we wanted to share some of the results with you. • 44% of our readers found out about Dark Daily from The Dark Report, 20% found out from a colleague of theirs, 14% from a Web search, and 13% from the Executive War College. • 50% of our subscribers have...

UnitedHealth Suspends Fines for New Jersey Doctors Who Continue to Use Quest Diagnostics

Last Friday brought an interesting twist to the question about whether UnitedHealth would follow through and fine doctors $50 for each of their patients who had laboratory tests done at out-of-network laboratories, effective March 1, 2007. The Associated Press published a news story revealing that the New Jersey Department of Banking had requested that UnitedHealth suspend any attempts to fine physicians under this program, pending its investigation in the situation. The New Jersey Department...

LabCorp Ousted from Aetnas National Contract

In the heavyweight championship fight taking place between the two blood brothers, Quest Diagnostics Incorporated  has just won the next round. Earlier today, Laboratory Corporation of America issued a terse press release titled: “LabCorp Notified by Aetna of Contract Termination.” LabCorp acknowledged that “it will no longer be a contracted laboratory provider for Aetna Inc. (NYSE:AET), effective July 1, 2007.” LabCorp further disclosed that it expects the loss of its contract relationship...