ACO model encourages clinical integration involving hospitals and office-based physicians
Here in Texas, the portion of the Obamacare Health Law that creates Accountable Care Organizations (ACOs) and an ACO payment mechanism has caught the full attention of the state’s largest multi-hospital health systems. Pathologists and clinical laboratory managers across the nation should take this activity in Texas as an early sign that ACOs are a care delivery model that must be taken seriously.
That’s because two things are happening in Texas. First, across the state, hospitals and health systems are actively developing ACOs. Second, anticipating restricted access to patients, physicians in smaller practices are starting to either sell their practices to the local hospital/health system, or are merging their group with larger medical practices.
Both activities are likely to fundamentally change the way clinical laboratories in Texas compete for the laboratory test referrals from office-based physicians. This could occur once the ACOs now in organization initiate clinical services.
Hospital lab—commercial medical laboratory collaboration will launch in San Fernando Valley
Yesterday, Pathology Associates Medical Laboratories (PAML) announced a new clinical pathology laboratory joint venture (JV) that is likely to create a tough new laboratory competitor in Southern California.
Spokane, Washington-based PAML and Renton, Washington-based Providence Health & Services will create a new medical laboratory services company to serve California’s San Fernando Valley and its surrounding communities. The new company will begin operating early in 2011 and will be called California Laboratory Associates (CLA), LLC. CLA will provide routine laboratory testing services to medical practices and hospitals from the recently remodeled labs at Providence Saint Joseph Medical Center in Burbank, and more specialized reference and esoteric testing from PAML’s laboratory in Washington.
Acquisition is a deal between two private equity firms
Spectrum Laboratory Network of Greensboro, North Carolina, will be acquired by Welsh, Carson, Anderson, & Stowe. Investment funds managed by Apax Partners are the sellers and the purchase price is $230 million. It is the highest dollar value acquisition of a clinical laboratory during 2009.
The acquisition agreement was announced at the end of last week. It brings Welsh, Carson back into the laboratory testing industry for the first time since 2007. During this decade, Welsh, Carson held an equity ownership in LabOne, Inc., which was based in Kansas City, Missouri and was building a fast-growing business in medical laboratory testing.
Hospital/commercial lab JV finds success in competitive Salt Lake City market
DATELINE: SALT LAKE CITY, UTAH—Since its formation less than two years ago, MountainStar Clinical Laboratories, LLC, has more than doubled in size. This unique laboratory outreach joint venture is a partnership between MountainStar Healthcare and Pathology Associates Medical Laboratories (PAML).
To learn more about this fast-growing joint venture, last week, Dark Daily traveled to Salt Lake City to visit MountainStar Clinical Laboratories, LLC . First, some background about this partnership.
Across the country, many hospital laboratory outreach programs continue to grow and prosper, despite a sour economy and higher rates of unemployment. That’s true in Chicago’s northern suburb of Evanston, Illinois, where the laboratory outreach program of Evanston Hospital enjoys solid rates of growth in specimen volume and revenue.
This week, Dark Daily visited Evanston Hospital and spent time with Thomas A.Victor, M.D., Ph.D., Chair of the Department of Pathology and Laboratory Medicine, and his laboratory team. Evanston Hospital is the anchor facility for Northshore University Healthsystem, which includes Glenbrook Hospital, Highland Park Hospital, and Skokie Hospital. These four hospitals total 1,043 beds. Northshore is affiliated with the University of Chicago School of Medicine.