Clinical Laboratory Testing Volume 2: Business Strategies

Clinical laboratory testing is generally categorized6.7.3 Laboratory Corporation of America 66
as either of two general areas--clinical testing and6.7.4 LabCorp’s Growth, 2000-2006 66
anatomical pathology testing. Clinical and anatomical6.7.5 Competitive Advantages at Quest and
pathology procedures are frequently ordered asLabCorp 67
part of regular physician office visits and hospital6.7.6 National Managed Care Contracts 67
admissions in connection with the diagnosis and6.7.7 Billing and Collection Management 68
treatment of illnesses. As such, clinical laboratory6.7.8 Lower Reagent and Supply Costs 68
analysis is one of the most important sections of6.7.9 Esoteric Testing Capabilities 68
medical care. The purpose of this report is to6.7.10 Ability to Invest in Web-Based Connectivity
describe the specific segments of the clinicalSolutions 68
laboratory analysis business. The emphasis in this6.7.11 Competitive Disadvantages of Quest and
review is on those companies that are activelyLabCorp 68
developing and marketing laboratory data for the6.7.12 Difficulties with Turnaround Times and Stat
clinical setting, including hospitals, independent labs,Services 69
physician’s offices and miscellaneous clinics.6.7.13 Physician-Laboratory Communication 69
This study concentrates on the clinical laboratory6.7.14 Specimen Pickup Scheduling Inflexibility 69
industry in the U.S. It defines the dollar volume of6.8 Regulation of Clinical Laboratory Operations 70
sales in each major market and analyzes the6.8.1 CLIA and State Regulations 70
factors that influence the size and the growth of6.8.2 Drug Testing 70
the individual market segments. The study6.8.3 Controlled Substances 71
surveys some of the primary companies known6.8.4 Medical Waste, Hazardous Waste and
to be marketing clinical laboratory data into theRadioactive Materials 71
market. Each company is discussed in depth with6.8.5 FDA 71
a section on the history of the company, the6.8.6 Occupational Safety 71
product line, business and marketing analysis, and6.8.7 Specimen Transportation 71
a subjective commentary of the position of the6.8.8 Corporate Practice of Medicine 71
company in its market. Table of Contents :6.9 Hospital Outreach Programs 72
1. Overview 51.1 Objectives of the Report 56.10 Supply Chain and GPO Contracting 72
1.2 Methodology 66.11 Specialty Labs 72
1.3 Scope of the Report 76.12 Expansion of Hospital-Based Labs and Hospital
1.4 Executive Summary 8Outreach Programs 73
2. IVD Clinical Laboratory Market 102.16.13 Managed Care 73
Introduction 107. Company Profiles 747.1 ACM Medical
2.2 Key Players for Independent Clinical Labs 11Laboratory 74
2.3 Reimbursement Pressure 117.2 American Esoteric Laboratories (Sonic
2.4 Medicare Part B Spending Trends 13Healthcare) 74
2.5 Cost of Billing and Average Receipts for7.3 American Pathology Partners 74
Commercial Labs 157.4 AmeriPath (Quest) 75
2.6 Hospital Outreach Programs 167.5 ARUP Laboratories 75
2.7 Criteria for Selection of Lab Services 207.6 Athena Diagnostics 76
3. The Clinical Laboratory Testing Market 213.1 U.S.7.7 Aurora Diagnostics 76
Market 217.8 Bio-Reference Laboratories, Inc. 76
3.1.1 Hospital-based Clinical Laboratories 237.9 BioTech Labs 77
3.1.2 Commercial Clinical Laboratory Testing 237.10 CBLPath 77
3.1.3 Physician Office Laboratories (POLs) 247.11 Centrex Clinical Laboratories 77
3.2 Clinical Lab Testing Key Players 297.12 Clarient, Inc. 77
3.2.1 Commercial Clinical Labs 297.13 Clinical Laboratories of Hawaii (Sonic
3.2.2 Hospital Lab Collaborative Ventures 30Healthcare) 78
3.2.3 Specialty Labs 317.14 Clinical Reference Laboratory 78
3.3 Revenue and Reimbursement 327.15 Clongen Laboratories 78
3.4 Outlook for Clinical Laboratory Testing 357.16 CompuNet Clinical Laboratories 78
3.4.1 Long-Term Changes 357.17 Diagnostic Systems Laboratories 79
3.4.2 Market Drivers 367.18 Enzo Biochem, Inc. 79
3.4.3 The Limits to Growth 377.19 Esoterix 79
3.4.4 Key Technologies 377.20 Focus Diagnostics 80
3.4.5 Conclusion 387.21 Fresenius Medical Care AG & Co. KGaA
4. Hot Sectors in the Clinical Lab Testing Market80
394.1 Workplace Drugs-of-Abuse Testing 397.22 Geneva Laboratories 81
4.2 Clinical Toxicology 397.23 Genomic Health, Inc. 81
4.3 Clinical Testing for the Pharmaceutical Industry7.24 Genzyme 82
407.25 IBT Laboratories 83
4.4 Heavy Metal, Trace Element, and Solvent7.26 Integrated Regional Laboratories (IRL) 84
Analyses 407.27 LabCorp 84
4.5 Diabetes (Glucose) Testing 407.28 MDS Diagnostic Services 85
4.6 Molecular Diagnostic Testing 407.29 MEDTOX Scientific, Inc. 86
4.7 Cardiac Markers 417.30 Meriter Health Services 86
4.8 Blood Bank Screening 417.31 Mid America Clinical Laboratories (MACL) 86
4.9 Genetic Testing 417.32 Monogram Biosciences, Inc. 86
4.10 Predictive Medicine Testing 427.33 Myriad Genetics, Inc. 87
4.11 Personalized Medicine 447.34 National Jewish Medical and Research Center
4.12 Cancer Testing 4487
4.13 Cell Based Cancer Testing 457.35 Parkway Clinical Laboratories 88
4.14 Monitoring Technologies 477.36 Pathology Associates Medical Laboratories
4.15 Anatomic Pathology 48(PAML) 88
5. Important Technology Trends 495.1 Technology7.37 Psychemedics Corporation 88
Platform Innovations in Point-of-Care Testing 497.38 Quest Diagnostics Incorporated 88
5.2 The New Paradigm 497.39 RDL Reference Laboratory 89
5.3 Consolidated Workstations 497.40 Satellite Laboratory Services 89
5.4 Automation in the Laboratory 517.41 Spectrum Laboratory Network 89
5.5 Laboratory Information Systems 527.42 Sonic Healthcare 90
5.6 New User-friendly Interface 528. Clinical Laboratory Testing Sector Trends and
5.7 Data-Management Issues 53Forecasts 918.1 Home Care Analysis 91
5.7.1 Wireless LANs 538.2 Non-Traditional Collection for Laboratory
5.7.2 Data and Workflow Management SystemsTesting 91
548.3 New Systems for Critical-Care and
5.7.3 Beckman Central Command 54Near-Patient Testing 91
5.7.4 Clinical IT More Widely Available in Physician8.4 Shift to Preventative Medicine 91
Practices 558.5 Mergers of Diagnostic Companies 91
5.7.5 Physician Electronic Health Records (EHRs) 568.6 Information Management Advances 91
5.7.6 Specimen Tracking and Processing 568.7 Test Ordering Patterns 91
6. Business Trends in the Clinical Laboratory8.8 Patient Satisfaction 91
Analyzer Sector 576.1 Key Developments 578.9 Move Away from Central Laboratory 92
6.2 Sector Consolidation 578.10 Healthcare Cost Controls 92
6.3 Acquisition Pricing 588.11 Competition for Services 92
6.4 A Closer Look at Recent Lab Deals 598.12 Drivers and Barriers of Clinical Laboratory
6.5 Acquisition, License Agreements, InternalTesting 92
Development and Partnerships 608.13 Confluence of New Technology 93
6.6 Merger, Acquisition, Financing and Partnering8.14 New Trends in Clinical Laboratory Testing 93
Activities in the Clinical Lab Industry 618.14.1 Trends in Reimbursement Practices 93
6.7 Comparison of Quest and LabCorp 658.14.2 Managed Care 95
6.7.1 Acquisitions 658.14.3 Point of Care Testing 96
6.7.2 Quest’s Growth, 2000-2006 658.14.