Consolidating sales organizations

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This is where the industry is going.” This project has benefited the laboratory, which has grown along with the network.“When physician practices are being acquired by us, then the testing comes to us.” But the lab doesn’t stop there.It was a different corporation and provided services to the independent lab on a contractual basis. “Despite the big Kroger and Safeway stores with their cost advantages, there’s still room in some markets for some specialty stores like butchers or fishmongers.But what’s happening in the lab business is that the customers who are able and willing to pay for what they might perceive as quality are becoming fewer and fewer.Alfred Lui, MD, a co-founder of Pathology Inc., recently bought by Laboratory Corp.of America, has built two successful independent laboratory enterprises and sold off part of one and all of the second. Lui and partner Richard Ellis, MD, started an independent laboratory across the street from the hospital to which they provided pathology services.Where enforcement is lax—as it can be when smaller operations are involved—it becomes a major source of pressure on independent labs trying to survive. Lui and partners sold the entire independent lab portions of the business to Lab Corp. In terms of the pathologist-built, pathologist-owned, and pathologist-operated labs, we were virtually the last one.

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What are the advantages that large size provides to a hospital system or national lab in a competitive marketplace?Crawford arrived, two-thirds of system revenues were from inpatient admissions—to providing the preponderance of its care in the community.“We’ve been building an extensive ambulatory network.At Northwell Health Laboratories, at ACL Laboratories (Advocate Health Care) in Chicago, and at PCL Alverno in Hammond, Ind., “they’ve decided they can do what Quest would do.They don’t need a commercial partner because they’re becoming commercial labs themselves” by forming one laboratory for all their hospitals, Dr. The major trend in the industry right now, says James Crawford, MD, Ph D, senior VP and executive director of laboratory services at Northwell, is the large national labs—Quest being the most aggressive—buying up the ambulatory part of lab services from health systems.

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