Aug 13, 2009 | Laboratory Management and Operations, Management & Operations
Sonic purchased Piedmont Medical Laboratory of Winchester, Virginia, and Axiom Laboratories, of Tampa, Florida
Yesterday, Sonic Healthcare, Ltd., of Sydney, Australia, officially recognized the acquisition of two clinical laboratories in the United States: Piedmont Medical Laboratory of Winchester, Virginia, and Axiom Laboratories, of Tampa. The Axiom transaction was closed earlier this summer.
For both labs, Sonic will pay $20 million in cash and could pay $2.5 million more in performance-based bonuses over the next two years. As an indication of current pricing for laboratory services, the $20 million purchase price bought Sonic a total of approximately $16 million in annual revenue.
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Mar 23, 2009 | Laboratory News, Laboratory Pathology
Pathology and laboratory testing services are contracted by district health boards
Dateline: Christchurch, New Zealand-After two weeks of pathology meetings and lab site visits in Australia and New Zealand, your Dark Daily editor has gained new insights about pathology and laboratory medicine in these two English-speaking countries. One notable point is that, despite the fact that both countries have universal health coverage, their pathology and clinical laboratories are under significant financial stress.
This comes from a combination of factors. Their growing (and aging) populations are utilizing laboratory tests at increased volumes. At the same time, each government health system is using a variety of laboratory contracting practices to control spending on lab testing-thus steadily squeezing down the overall reimbursement paid to laboratories. Medical training programs in both countries are failing to graduate adequate numbers of pathologists and laboratory scientists. This is particularly true in New Zealand, where some rural regions are understaffed with adequate numbers of pathologists.
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Mar 20, 2009 | Laboratory News, Laboratory Pathology
Government efforts to reduce funding for lab tests may boomerang in coming years
Dateline: Christchurch, New Zealand-Here in the land of kiwis and enthusiastic rugby fans, pathology and laboratory services don’t seem to get much respect from regional health districts of the New Zealand Department of Health. There are fears that too much of this type of budget cutting will undermine the quality of laboratory testing in those communities.
In at least two major metropolitan regions of New Zealand, the regional health districts are using single-source tenders (contract bidding) for pathology and laboratory testing services as a way to drive down the price they pay for laboratory testing. One consequence of these tender efforts is an immediate reduction in the number of private pathology testing providers in these cities, since just one medical laboratory is granted an exclusive, multi-year contract to provide laboratory testing services to office-based physicians across that region.
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