Jun 14, 2010 | Laboratory News, Laboratory Pathology
Healthscope bids also fuel speculation of a big clinical pathology transaction
Last week in Australia, investment insiders shared rumors that Quest Diagnostics Incorporated (NYSE: DGX) was interested in acquiring Sonic Healthcare Ltd. (ASX: SHL). However, press stories discounted the possibility of a deal between these two billion-dollar clinical pathology laboratory behemoths. Neither company has issued a public statement addressing this issue.
In assessing the possibility of Quest Diagnostics acquiring Sonic Healthcare, the Sydney Morning Herald (SMH) threw cold water on the idea. It pointed out that Sonic’s stock price is trading at a multiple of 10.8 times earnings before interest, taxes, depreciation, and amortization (EBITDA). That would make Sonic an expensive purchase for Quest Diagnostics, since Quest’s share price trades at a multiple of seven times EBITDA. Further, SMH’s reporter pointed out that Sonic’s market capitalization of A$5.7 billion would make it a major acquisition for Quest Diagnostics, which has a market capitalization of U.S.$9.5 billion.
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Feb 8, 2010 | Laboratory Management and Operations, Laboratory News, Laboratory Pathology
Revised: February 13, 2010
Medhold NV will be acquired for about U.S. $316 million
Sonic Healthcare, Ltd., (SHL.AX) of Sydney, Australia, said last Friday that it would acquire 100% of Medhold NV, a clinical pathology laboratory based in Antwerp, Belgium. Sales price is €232 million, which is about U.S. $316 million. Sonic said the acquisition is conditional upon a small number of closing conditions and is expected to close within two weeks.
Medhold NV is Belgium’s second largest laboratory company. It was created in November 2007 by a merger of AML-Raitol and Medish Labo D Van Waes. Waterland Private Equity became a 50% owner at that time. The clinical laboratory company provides clinical laboratory testing and veterinary testing services.
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Dec 30, 2009 | Laboratory News, Laboratory Pathology, Managed Care Contracts & Payer Reimbursement
Sonic Healthcare asks for 30% pathology test fee increase from Bupa and MediBank
In Australia, reduced funding for pathology testing by government health programs is being blamed as one factor contributing to a contract spat between the nation’s largest clinical laboratory and its major private health insurance companies. Pathologists across the globe will recognize several familiar issues, as Australia’s health institutions struggle to cope with increased utilization of pathology testing and higher healthcare costs.
By asking for a price increase of 30% for pathology testing, Sonic Healthcare Ltd (ASX: SHL) has put itself at loggerheads with several of the nation’s largest private health insurance companies. As contracts between Sonic Healthcare and these private insurance companies expire, Sonic then sends bills directly to the patients insured by those health plans for the costs of the pathology testing performed during their stay at private hospitals. The amount of the bill reflects the “gap” fee difference between government reimbursement and the actual charge for laboratory tests.
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Oct 23, 2009 | Laboratory Management and Operations, Laboratory News
Management Tool Contributes to More Collected Revenue, Higher Sales Prices
Revenue Cycle Management (RCM) is hitting the radar screen at the nation’s best-managed clinical laboratories. That’s because shrinking reimbursement makes it imperative for clinical labs and pathology groups to collect every dollar legally due for the lab testing services they provide. RCM is a proven management tool for reducing unpaid claims and unlocking more productivity in the coding/billing/collections process.
“Revenue Cycle Management for laboratories encompasses all the administrative and management functions that contribute to the capture, and collection of revenue associated with lab testing services,” observed Lale White, CEO of Xifin, Inc. of San Diego, California. White has been an acknowledged national expert in laboratory coding, billing, and collections for more than two decades.
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Oct 14, 2009 | Laboratory Management and Operations, Laboratory News, Laboratory Pathology
Dark Daily Commentary: Treat lab testing as a commodity and risk disrupting the entire healthcare system
Once again, the pathology profession is seeing the consequences of the “penny wise-pound foolish” philosophy relentlessly pursued by government health bureaucrats. This time it involves the Auckland District Health Boards in New Zealand. Having signed a cut-rate, back room deal back in 2006 to save about NZ$15 million per year on lab testing (against an annual healthcare budget in the region of more than NZ$2.5 billion), these health officials are reaping a harvest of voluminous problems and deficiencies in the community because of problems with their new monopoly laboratory testing provider.
Many regular Dark Daily readers know that, ever since Labtests began its contract as the exclusive provider of pathology services and lab testing to the greater Auckland region late this summer, there has been chaos across the healthcare system. Labtests is a new business division of Healthscope Limited, (SYD:HSP) a public company based in Melbourne, Australia. See Dark Daily e-briefing “Long-Awaited Lab Contract Transition in New Zealand Happens Next Monday”.
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