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      Headlines - February 14, 2005
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R. Lewis Dark:"Frankenstein the Tumor" is No More

HOW MANY OF YOU HEARD ABOUT THE TUMOR NAMED"FRANKENSTEIN"? This is a story which made national news in mid-January and again in early February.

The story line is simple. A nine-year old boy in Richmond, Virginia was diagnosed in May 2003 with embryonal rhabdomyosarcoma. A grapefruit-sized tumor was impinging on his optic nerves and carotid arteries, causing blindness and headaches. The boy named his tumor"Frankenstein," or Frank for short. Chemotherapy and radiation treatments shrank it to the size of a peach pit, restoring his vision, but there were serious side-effects. For a while he couldn't walk or eat and had to be fed through a tube, according to his mother.

Following chemotherapy, the problem was that the boy's parents did not have the money required to pay for the biopsy necessary to determine if the remaining tissue in the tumor was malignant. To raise money to pay for the biopsy procedure, his parents had been auctioning, on E-Bay, a bumper sticker reading"Frank Must Die." That's how the story came to the attention of the national media.

Learning of the boy's plight, Hrayr Shahinian, M.D. of the Skull Base Institute at Cedars-Sinai Medical Center in Los Angeles, California offered to perform the procedure at no charge. Using a minimally-invasive technique, the biopsy was conducted on February 2. The surgery was declared a success and the tissue was sent off for analysis.

As of press time, the family had not received the pathology report. They have scheduled a press conference for tomorrow, February 15, to announce the results. The press conference will be conducted at the Willard International Hotel in Washington, D.C. and Dr. Shahinian will be present to discuss the findings.

Certainly there are many heartwarming aspects to this story, particularly if David, the young boy, gets a pathology report which indicates he is cancerfree at this time. On the other hand, this story exposes gaps in how the American healthcare system responds to the needs of individuals who lack adequate financial resources. This tale also draws attention to the time required after the biopsy procedure before test results and the pathology diagnosis can be provided to the patient, his physician, and his parents. TDR


Five Lab Acquisitions Over the Past Ten Weeks

Smaller lab companies continue to be gobbled up by purchasers

CEO SUMMARY: Many lab executives and pathologists will be surprised to learn that five independent laboratory companies were acquired between December 1, 2004 and February 11, 2005. Only one acquisition was announced to the public. The other four were private sales and both buyers and sellers preferred to avoid any publicity associated with these acquisitions.



Review of 2004 Lab Sales Identifies Buyer Interest

There are new buyers for laboratories, but only if the selling lab meets certain criteria

CEO SUMMARY: Laboratory acquisition activity was surprisingly high during 2004. One reason is that new buyers appeared in the marketplace. However, all buyers have specific acquisition criteria. When a selling lab meets that criteria, it can expect multiple bidders and a strong purchase price. Here's a review of 2004's lab acquisition activity, with commentary about which types of labs are in high demand.



Barristers Offer Insights Into OIG Opinion 04-17

There's more compliance guidance to come on the subject of physician self-referrals

CEO SUMMARY: This is an intelligence briefing which tries to"read between the lines" and: 1) provide useful information about the OIG's"undeclared" views on physician self referral issues, particularly as they relate to anatomic pathology condominiums; and, 2) how specialist physician groups and pathologists are reacting to such issues in the real world of the healthcare marketplace.



Doctor"Pay to Perform" Launched by Medicare

Laboratory testing plays a key role in guidelines measuring outcomes

CEO SUMMARY: Medicare's just-announced physician"pay-for-performance" program will be a positive development for laboratories and pathologists. One consequence is that physicians will be measured on how effectively they use recommended lab tests in certain areas of care. This will give physicians a motive to work with laboratories which offer added-value lab testing services.



Cytology Diagnostics: Evolution in Pap Marketplace Shows Impact of New Guidelines

Sales of Digene's HPV test grow rapidly, direct-to-consumer ads will start in March



Lab Briefs: RFID, Georgetown University Hospital, HIV Screening Studies, MDS, Duke, HCA, Cigna


INTELLIGENCE:

PATHOLOGY ERRORS ATTRACT NOTICE OF WALL STREET JOURNAL

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