Jul 13, 2009 | Laboratory Management and Operations, Laboratory Pathology
Ex-Senate Majority Leader Predicts Democrats Will Aggressively Push Reform
In recent weeks, laboratory professionals got a ringside seat to hear a true Washington insider discuss key issues in healthcare reform. Former U.S. Senate Majority Leader Tom Daschle, told lab industry executives and pathologists that Congress faces three significant hurdles as it attempts to reform the healthcare system. The first—and perhaps most significant—hurdle involves costs, he said. Daschle is currently a Senior Policy Advisor at Alston and Bird, a law firm in Washington, D.C.
“Cost is a huge political factor,” stated Daschle during a recent audio conference conducted by the American Clinical Laboratory Association (ACLA) on June 24. “Of all of the factors, cost is driving this debate as much if not more than any [other single factor]. We are looking at an investment cost of about $1 trillion to put this new infrastructure in place and that is an issue of great concern.” Daschle explained that the other two hurdles are quality of care and access to healthcare.
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Jun 9, 2009 | Laboratory News, Laboratory Pathology
What is my lab worth? That’s the question every laboratory seller wants to know!
Despite an economy in recession, laboratory buyers remain bullish on the financial fortunes of clinical laboratories and anatomic pathology companies. The lack of publicly-announced acquisitions during 2009 masks the fact that lots of conversations are happening between lab buyers and lab owners.
Why such interest? On the buyer side, private equity companies and buyers are convinced that the demographics of the aging population translates into a robust demand for laboratory testing during the next decade. Further, they are enthusiastic about the potential for the steady introduction of powerful new diagnostic assays to further drive up lab test volume. They understand why patients and physicians will seek the benefits of higher sensitivity and improved accuracy from these new assays.
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May 27, 2009 | Laboratory Management and Operations, Laboratory Pathology
Effort to notify and test as many as 10,555 patients is under way
Reforms in the healthcare system are requiring fundamental changes in how hospitals and other healthcare providers, including clinical laboratories, report medical errors. At the same time, consumers are tracking the quality differences between providers and insisting on more accountability for medical errors.
These points were highlighted in a Dark Daily e-briefing on March 11, 2009, titled “Medical Errors Become a Headline News Item.” At that time, the Department of Veterans Affairs (VA) had made public the discovery of multi-year problems at VA clinics in Murfreesboro, Tennessee, and Augusta, Georgia. At both sites, improper procedures with diagnostic equipment had been identified. In both situations, the problems meant that thousands of patients may have been exposed to infection.
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Mar 27, 2009 | Compliance, Legal, and Malpractice, Laboratory Management and Operations, Laboratory News, Laboratory Operations, Laboratory Pathology
Allegations of false claims implicate discounted client billing practices
It’s the first major whistleblower lawsuit in the laboratory industry in recent years. On March 20, California State Attorney General Edmund G. Brown Jr. announced that his state had joined a qui tam lawsuit that alleges a number of laboratories have filed false claims on a “massive” scale, thus defrauding the California Medi-Cal program of “hundreds of millions of dollars.”
The unusual twist in this whistleblower lawsuit is that it was originally filed by the owner of a California-based laboratory. In 2005, Chris Reidel, owner and CEO of Hunter Laboratories, in Campbell, California, initiated the legal action, alleging what AG Brown characterized as “massive Medi-Cal fraud and kickbacks. Medi-Cal is the state’s Medicaid health program for the poor.
The original lawsuit filed by Reidel seeks to recover at least $100 million. However, one of his attorneys, Joe Cotchett, of the San Francisco-based law firm of Cotchett, Pitre & McCarthy, believes the state’s actual losses could be more than $1 billion. The lawsuit is pending in San Mateo Superior Court and was filed under seal in 2005.
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