Apr 11, 2016 | Compliance, Legal, and Malpractice, Laboratory Management and Operations, Laboratory News, Laboratory Operations, Laboratory Pathology
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…)
Dec 3, 2014 | Coding, Billing, and Collections, Laboratory Hiring & Human Resources, Laboratory Operations, Laboratory Pathology, Laboratory Sales and Marketing, Laboratory Testing
Researchers at the University of California San Francisco revealed that the cost for a simple cholesterol test ranged from as little as $10 to as much as $10,169!
Clinical laboratories owned by hospitals and health systems should take note of a public study of hospital laboratory test prices that was conducted by researchers at the University of California at San Francisco (UCSF). It was published this summer and showed a remarkable range of prices for medical laboratory tests charged by California hospitals.
How about a charge of $10,169 for a routine blood cholesterol test? This was one finding a study discussed in the August 2014 issue of the British Medical Journal Open blog. The study was led by Renee Hsia, M.D.. She is an associate professor of Emergency Medicine and Health Policy at the UCSF Medical School. Hsia and her colleagues compared charges for 10 common clinical laboratory tests that were reported in 2011 by all non-federal California hospitals. (more…)
Jun 23, 2010 | Laboratory News, Laboratory Pathology
Anatomic pathology firm hopes proposed sale of stock will bring in up to $150 million
Anatomic pathology company Aurora Diagnostics, Inc., of Palm Beach Gardens, Florida, just announced a new credit facility that will give it access to as much as $335 million should all conditions be met. Aurora Diagnostics hopes to raise $150 million from an initial public offering (IPO) of its stock, for which it filed registration documents in April.
Aurora Diagnostics was founded in June 2006, by former Ameripath, Inc., executives James New and Marty Stefanelli and was originally funded by Summit Partners and GSO Capital Partners. Over the past four years, Aurora Diagnostics says it has acquired 17 pathology practices. Its revenue for 2009 totaled $171 million, with EBIDTA (earnings before interest, depreciation, taxes, and amortization) of $28 million and net income of $9 million.
(more…)
Jul 8, 2008 | Laboratory Management and Operations, Laboratory Pathology
With demand driving prices to record levels for clinical laboratory companies and anatomic pathology practices, merger and acquisition (M&A) activity in the lab industry continues to grow across the United States.
Just two weeks ago, Sonic Healthcare, Ltd. announced that it was purchasing Clinical Laboratories of Hawaii, LLP for an estimated $121 million dollars. That sale is expected to be completed by the end of third quarter this year. (See Dark Daily, June 30, 2008)
Still unannounced as of this date are the winning bidders for the laboratory outreach business of Stanford University Medical Center and the laboratory testing division of Carilion Clinic. Earlier this year, officials from both institutions disclosed that their laboratory businesses were up for sale. (See Dark Daily, April 15, 2008)
At this year’s Executive War College in May, attendees participated in the lab industry’s first-ever conference on “Mergers & Acquisitions in Clinical Laboratories and Anatomic Pathology,” a program designed to bring potential sellers of clinical labs, pathology groups, and hospital lab outreach programs together with experts in law, valuation, negotiation, and financial planning.
Two speakers attracted particular attention: Doug Brown, Managing Director of Wachovia Securities and attorney Antony Konkoly, Esquire, of McDonald Hopkins.
Brown provided a concise review of the factors supporting higher valuations for laboratory assets and discussed details of some recent noteworthy lab acquisitions. According to Brown, lab owners need to recognize that there is no simple way to establish a single value for their laboratories because different buyers will place different values on a lab company’s existing assets and future growth prospects.
Brown also discussed details of the 2007 acquisition of AmeriPath, Inc. by Quest Diagnostics, Inc. for approximately $2 billion. With annual revenue of $750 million, it was estimated that the multiple paid in this transaction was as high as 17 times EBITDA (earnings before interest, taxes, depreciation, and amortization). Brown pointed to several unique factors, including market timing, that supported AmeriPath’s top-of-market valuation at the moment the deal was inked. He also explained that these same factors were not likely to be seen in the laboratory industry again anytime soon.
In this same session, Antony Konkoly offered some important M&A do’s and don’ts based on his considerable experience representing various parties in the sale of laboratory businesses, the establishment of laboratory joint ventures and the formation of new lab companies.
If you weren’t able to participate in this exciting new M&A conference, here’s another opportunity to hear Doug Brown’s take on the current state of mergers and acquisitions in laboratory and pathology.
Attorney Antony Konkoly, Esq. will once again join Doug Brown in this discussion. From Konkoly, you’ll learn about the mistakes lab sellers often make, and how you can fix those issues before offering your laboratory for sale. You’ll also get several proven recommendations on how to minimize tax consequences and maximize the net proceeds from the sale.
Whether you’re a lab owner or pathologist, you won’t want to miss this comprehensive new audio conference. Join Dark Daily and The Dark Report as they present, “Lab and Pathology Mergers & Acquisitions: Must-Have Essentials To Learn Before You Buy Or Sell A Lab,” on Wednesday July 30, beginning at 1:00 p.m. EDT (10:00 a.m. Pacific) and running for 90 minutes.
Don’t miss this special audio conference and your chance to listen to and ask questions of these two veteran lab industry dealmakers.
Register on or before July 18, 2008 and you’ll save $50. So don’t wait-Register today! http://www.darkreport.com/Audio/7.30.08/audio-register.htm
Apr 16, 2007 | Laboratory News, Laboratory Sales and Marketing
Here’s the latest shake-up to the laboratory testing marketplace. Quest Diagnostics Incorporated announced this morning that it will acquire AmeriPath, Inc. in a transaction valued at $2 billion.
Both parties expect the deal to close before June 30, 2007. AmeriPath’s annual revenues are in excess of $800 million. Quest will pay $1.23 billion in cash and assume about $770 million of debt when the transaction closes.
With its purchase of AmeriPath, Quest Diagnostics picks up three diverse businesses in laboratory testing. First, it acquires Specialty Laboratories, Inc., based in Valencia, California. Specialty Labs provides reference and esoteric testing services to hospital and certain physician specialists.
Second, it will own AmeriPath Dermatopathology. This business division employs 80 pathologists located in offices across the United States. This business line is fast-growing and very attractive to Quest Diagnostics.
Third, it will come into ownership of the remaining anatomic pathology assets owned by AmeriPath. The largest component of this business division is the hospital-based pathology group practices that AmeriPath acquired over the past 10 years. There are also several pathology subspecialty centers in areas such as gastroenterology, oncology, women’s health, and urology.
For Quest Diagnostics, the timing of this acquisition allows it to shift the attention of Wall Street away from the UnitedHealth contract. The AmeriPath acquisition also allows it to gain lab testing revenues that will more than offset expected losses from the UnitedHealth contract. AmeriPath’s revenues will keep Quest Diagnostics on a growth track for 2007.
But with every laboratory acquisition comes with its own set of unique challenges. It has long been known that AmeriPath has struggled to find the right key to unlock financial success from its multiple business models. In buying AmeriPath, Quest Diagnostics will need to move carefully to integrate AmeriPath’s laboratory testing assets into its existing national laboratory network to maximize the benefits from this acquisition. These issues will be explored in the upcoming issue of The Dark Report.
Finally, one particularly happy party to AmeriPath’s sale is Welsh, Carson, Anderson and Stowe, AmeriPath’s majority shareholder. In March 2003, it paid approximately $840 million to buy the public stock of AmeriPath and take the company private. Then, in January 2006, AmeriPath paid an estimated total of $314.7 million to buy all the public shares of Specialty Laboratories. The impending sale to Quest Diagnostics comes only four years after Welsh Carson acquired AmeriPath and allows the private equity company to cash out its investment.
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