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
Sign In

LabCorp’s King and Ventana Medical Systems’ Grogan to Assess Clinical Laboratory Industry’s Future

Pathologists and clinical lab executives will hear perspectives from 80 speakers at the upcoming Executive War College on Lab and Pathology Management

For any pathologist or clinical laboratory executive interested in the future of the lab testing industry, there will be plenty of insights at the upcoming 15th Annual Executive War College on Laboratory and Pathology Management April 27-28 at the New Orleans Sheraton Hotel.  Leading a line-up of 80 speakers are David King, CEO of Laboratory Corporation of America (NYSE: LH) and Thomas Grogan, M.D., Founder and Chief Scientific Advisor of Roche Ventana Medical Systems.

There’s lots of optimism about the future of laboratory testing. That’s because genetic and molecular testing is giving pathologists new tools to more precisely diagnose disease and determine appropriate therapies. LabCorp’s David King, will speak to how lab test data is the linchpin in the drive to more tightly integrate clinical care in ways to lift patient outcomes.


Put April 28-29 on your calendar and join us for Executive War College 2009!

We’re Heading Back to New Orleans!

Get the latest and best in lab and pathology management!

Add this website to your favorites and check back often:

Make your plans to join us for the biggest and best Executive War College ever! Last year’s event was sold out and we plan to exceed it with timely topics, powerful speakers, and the profession’s best networking.

Executive War College 2009 will take place on April 28-29, 2009. Location will be the Sheraton New Orleans. After several years away, we are heading back to New Orleans!

As the lab industry’s leading showcase of innovative laboratories and pathology groups, it’s your best opportunity to get up close and personal with some of the nation’s best-performing laboratory directors and pathologists.

We’d also like to ask your help. What topics would you like to be presented at Executive War College 2009? Share your suggestions with us by emailing Besides topics, do you have speaker suggestions, including yourself? We work hard to locate some of the industry’s most interesting innovators. You may be among them, so let us know what your lab is doing!

In closing, don’t forget to mark your calendar and block April 28-29, 2009. We’d love to have you with us at the 14th Annual Executive War College!

Robert Michel

Lab Acquisition Activity Stays Busy as Stanford and Carilion Negotiate with Buyers

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!

Developing Industry Trends Promise to Upend Some Labs and Pathology Groups

I have just finished confirming 49 speakers for this year’s Executive War College on Laboratory and Pathology Management and there is disturbing news to share. It is the collective opinion of these distinguished individuals that a cycle of rapid change has already begun to engulf the laboratory profession in the United States.

In general, most of this year’s speakers can identify at least one trend which threatens the financial security and operational stability of their laboratory organization. Their comments to me reflect a noteworthy difference compared to earlier years. Here is a quick list of the most significant trends which have the potential to be a threat to established laboratories:

• Rapid shift in managed care contracting practices that are likely end up excluding most local and regional laboratories from provider panels, with the new UnitedHealth contract as the leading edge

• Fast-growing numbers of urologists and gastroenterologists taking active steps to create their own in-house anatomic pathology laboratory, also described as the “TC/PC” trend

• Demands by office-based physicians for their laboratory to create interface gateways that support electronic test ordering from the physicians’ EMR (electronic medical record) system and deliver lab test results direction into the patient record in the EMR

• Expectations that imaging giants Siemens and GE, after spending billions to buy Bayer Diagnostics, DPC, and Abbott Diagnostics, are preparing to muscle into laboratory testing and molecular pathology

• Growing acceptance of Lean and Six Sigma quality management methods in laboratories and pathology groups, thus giving these lab organizations competitive advantage over labs which have yet to adopt such management systems

I’m going to stop with these five trends. Most of you can recognize how each can threaten existing lab organizations. Many of you are already implementing strategies within your laboratory to respond to these threats and convert them into opportunities for growth, enhanced profits, and long term financial stability.

Armed with this knowledge, we’ve crafted a total package of insights and solutions at the upcoming Executive War College on May 10-11 to help you with this multiplicity of trends in the lab services marketplace. For example, David P. King, the new CEO of Laboratory Corporation of America  will make a major address on “Managed Care Contract for Laboratory Services: Important Changes Lie Ahead.”

In future e-briefings, I will comment on those other important trends identified above. For those of you who would like to see all 49 topics and speakers, visit for the complete program.

Yours truly,

Robert L. Michel
Dark Daily Editor

Download the Full Executive War College Agenda (PDF)

Four Easy Ways to Register:
1. Register for the Executive War College Online (Early-bird discount still applies)

2. Call 800-560-6363. Our friendly staff can register you quickly and easily, as well as answer any questions you may have.

3. Fax the Executive War College Registration Form to 512-264-0969

4. Mail the Executive War College Registration Form with payment to:

21806 Briarcliff Dr.
Spicewood, TX 78669

PS: In the latest issue of The Dark Report, now in the mail to you, our lead stories deal with the rapid turnover of UnitedHealth business from Quest Diagnostics Incorporated and LabCorp’s three-stage strategy for using the UnitedHealth contract to boost its long-term presence in local markets throughout the country. It’s not only interesting reading, but gives regional laboratories a head start in understanding the next competitive cycle that will soon be launched.