Sep 3, 2010 | Laboratory News, Laboratory Pathology
Meanwhile, both Quest Diagnostics and LabCorp report second quarter declines in specimen volume
Fewer patients visiting physician offices during second quarter 2010 is considered to be one reason why specimen volume declined at clinical pathology laboratory testing giants Quest Diagnostics Incorporated (NYSE: DGX) and Laboratory Corporation of America (NYSE: LH) during that three-month period.
For second quarter, LabCorp reported a 2% decline in specimen volume, along with a 4.2% increase in revenue. At Quest Diagnostics, the specimen volume decline was 1.3% and revenues declined by 1.4% in the second quarter 2010, compared to second quarter 2009.
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Jul 26, 2010 | Laboratory News, Laboratory Pathology, Uncategorized
Less funding for clinical pathology laboratory testing is just one of several market developments
Australia’s competitive market for clinical pathology laboratory testing seems poised for some major changes. Unfolding events are upsetting the pathology testing status quo in at least three ways. Caught in the middle of these disruptive forces are Australia’s big three of pathology testing: Healthscope Limited (ASX:HSP), Primary Health Care Limited (ASX:PRY), and Sonic Healthcare, Ltd. (ASX:SHL ).
The first change is linked to the federal government’s decision in recent years to scrap a decades-long pathology testing reimbursement arrangement. In 2009, it allowed the most recent price contract with the pathology testing industry to expire without renewal. Then, in November 2009, the government instituted a reduction in pathology testing fees.
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May 24, 2010 | Laboratory News, Laboratory Pathology
Laboratory Corporation of America will also acquire Diamond Reference Laboratory
Last week, financially-troubled Westcliff Medical Laboratories, Inc., of Santa Ana, California, filed a Chapter 11 bankruptcy action in federal court. The news was disclosed to Westcliff clients in a letter signed by Westcliff’s Chairman and CEO. Even as this news became public, Westcliff announced that its assets would be acquired by Laboratory Corporation of America (NYSE: LH), subject to approval by the bankruptcy court.
In a separate transaction, LabCorp is acquiring Diamond Reference Laboratory of Diamond Bar, California. Diamond Reference Laboratory has estimated annual revenue of $10 million. Westcliff Medical Laboratories reported annual revenue of $97 million for 2009. When these two clinical laboratory acquisitions close, LabCorp will have picked up a 5% increase in its share of California’s estimated $2 billion laboratory testing market.
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Apr 12, 2010 | Laboratory Pathology, Management & Operations, News From Dark Daily
Pathologists and clinical lab executives will hear perspectives from 80 speakers at the upcoming Executive War College on Lab and Pathology Management
For any pathologist or clinical laboratory executive interested in the future of the lab testing industry, there will be plenty of insights at the upcoming 15th Annual Executive War College on Laboratory and Pathology Management April 27-28 at the New Orleans Sheraton Hotel. Leading a line-up of 80 speakers are David King, CEO of Laboratory Corporation of America (NYSE: LH) and Thomas Grogan, M.D., Founder and Chief Scientific Advisor of Roche Ventana Medical Systems.
There’s lots of optimism about the future of laboratory testing. That’s because genetic and molecular testing is giving pathologists new tools to more precisely diagnose disease and determine appropriate therapies. LabCorp’s David King, will speak to how lab test data is the linchpin in the drive to more tightly integrate clinical care in ways to lift patient outcomes.
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Apr 11, 2010 | Compliance, Legal, and Malpractice, Managed Care Contracts & Payer Reimbursement
Apparently physicians in several states besides New Jersey are catching the attention of their insurance regulators over UnitedHealthcare’s effort to fine doctors who continue to use out-of-network laboratories. Now, state authorities in Texas, Connecticut, Iowa, Florida, and California have joined New Jersey state regulators by announcing plans to review the legality of the $50 fine announced by United Healthcare for doctor’s who refer their patients to out-of-network laboratories.
In March, the California Medical Association said that this new policy illegally interferes with PPO patients’ right to access out-of-network benefits and improperly obstructs the physician-patient relationship. “Patients have the right to decide where to receive health care services, without having to worry that their physicians are being fined or otherwise penalized for their choices. This right is particularly acute for patients who pay premiums for nonexclusive PPO benefits,” wrote CMA chief legal counsel Catherine Hanson. “And physicians have the right to speak freely with their patients about their health care choices, without having to worry that they will be fined or otherwise penalized should their patients choose an out-of-network option.”
The Florida Medical Association initially asked United Healthcare to take the policy out of its protocols with physicians, but now simply says “We’re confident United is going to be working with physicians not to charge that $50,” said Lisette Gonzales-Mariner, FMA spokeswoman.
United Healthcare spokesman Roger Rollman said that the policy was for “worst-case scenarios” and that fines would not be imposed the first couple of times a doctor didn’t abide by the policy.
American Medical Association spokesman Robert Mills said, “I think, while others [insurers] may have protocols that talk of out-of-network labs, I don’t believe any other insurers are using the stick approach versus the carrot.”
It is not difficult to see that United Healthcare is receiving significant bad press from the medical community on the $50 fine for doctors with patients that use out-of-network labs. This decision has triggered growing concern among doctors, who are worried that they can be made responsible for the actions of their patients. The American Association of Family Physicians has clarified United Healthcare’s new lab protocol and outlined how and when fines can be dispensed, trying to put physicians at ease.
However, it is important to remember that, as part of the 10-year exclusive national lab services contract between UnitedHealth and Laboratory Corporation of America, UnitedHealth has a commitment to take active steps to enforce compliance by its physicians with the laboratory services network. It is believed that the financial benefits to UnitedHealth from this exclusive national lab services contract are significant enough to motivate it to continue its tough stance. What remains to be seen is whether the bad press and negative impact on relationships built with state medical associations will do lasting harm to the long term relationship between UnitedHealth and its physician panel.
Related Articles:
CMA Calls United Healthcare’s New Lab Policy Illegal and Ill-Advised
Doctors upset over insurer’s new policy
AAFP Clarifies UnitedHealthcare’s New Lab Protocol
