News, Analysis, Trends, Management Innovations for
Clinical Laboratories and Pathology Groups

Hosted by Robert Michel

News, Analysis, Trends, Management Innovations for
Clinical Laboratories and Pathology Groups

Hosted by Robert Michel
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Hospitals in Three States Offer Patients Free Medical Laboratory Tests Following Arrest of Surgical Technician for Allegedly Stealing Fentanyl from Operating Room

A 1999 case involving California phlebotomist charged with reusing needles resulted in similar widespread testing of thousands of patients

Because of possible exposure to HIV, hepatitis B, and hepatitis C from a healthcare worker, thousands of patients treated in multiple hospitals in different states are being offered free clinical laboratory testing. This situation is attracting national media attention and is a reminder to pathologists and medical laboratory professionals of the increased transparency that is being given to different types of medical errors that expose patients to risk.

A surgical technologist who allegedly stole the drug fentanyl from multiple hospitals provides an example of how the healthcare system can miss systematic misconduct by individual employees that can put thousands of patients at risk. (more…)

Sonic Healthcare Limited Selected to Provide $3-Billion in Medical Lab Services to Edmonton and Parts of Central and Northern Alberta

Other clinical laboratory organizations responding to the RFP were Laboratory Corporation of America, Quest Diagnostics Incorporated, and Mayo Clinic

Last Friday, Alberta Health Services (AHS) in Edmonton, Alberta, announced that Sonic Healthcare Limited (SHL.AX), of Sydney, Australia, has been selected as the medical laboratory testing provider to serve Edmonton and parts of central and northern Alberta. This agreement is worth $3 billion Canadian over 15 years and is believed to be the world’s biggest clinical laboratory testing contract currently out for bid.

Competition for this clinical laboratory testing contract was intense. Last April, four organizations were identified as having submitted responses to Alberta Health Service’s (AHS) request for proposals (RFP). They were: (more…)

Clinical Laboratory Company Quest Diagnostics Agrees to Acquire Celera Corp. for $657 Million

Celera is not a medical laboratory, but develops biomarkers and molecular diagnostics tests

For the second time since the New Year, Quest Diagnostics Incorporated (NYSE:DGX) has announced an acquisition. Last Friday, Quest Diagnostics said it had agreed to purchase Celera Corp. (NASDAQ:CRA) for a purchase price that Reuters reported to be $657 million.

What makes this acquisition different from those typically done by Quest Diagnostics and its major competitor, Laboratory Corporation of America (NYSE:LH), is that Celera is primarily not a provider of clinical laboratory tests. Rather, it specializes in identifying biomarkers that can be used to develop genetic tests. It is active in the fields of cardiovascular diseases, cancers and neurological disorders. Berkeley HeartLab is one clinical laboratory testing division owned by Celera.


Consolidation of Pathology and Clinical Laboratory Testing Happening in India

Super Religare Laboratories Acquires Piramal Diagnostic Services in $129 million deal

Pathology and clinical laboratory testing in India is poised to undergo ongoing consolidation as the pace of merger & acquisition activity increases. One sign of this trend is last month’s acquisition of the pathology business of Piramal Healthcare Limited by Super Religare Laboratories Limited (SRL).

In a deal valued at US$129 million, Super Religare Laboratories purchased Piramal’s pathology and radiology diagnostic services subsidiary, called Piramal Diagnostic Services Private Limited. Announced on July 14, 2010, Super Religare Laboratories said this acquisition will give it one of India’s largest pathology and clinical laboratory testing networks.

After combining the two businesses, Super Religare will operate 185 laboratories. It will have 1,500 patient collection centers that serve 12 million patients per year. Further acquisitions are planned by SRL.


Australia’s Three Biggest Pathology Laboratories Face New Competitive Pressures

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.