YOU'VE ALWAYS RELIED ON THE DARK REPORT to keep you at the cutting edge of developments in laboratory management and the broader healthcare system. We've consistently been first with the essential, intelligence, and analysis you need to keep your laboratory at its financial and clinical acme.

Once again, in this issue of THE DARK REPORT we are first to identify and describe a trend which already touches large numbers of hospital and health system laboratories in the United States. Even though the majority of hospitals have yet to experience a crash in inpatient admissions or higher levels of patient bad debt, they are in a cash conservation mode! It's causing hospital labs to pull in spending.You can learn why by reading the intelligence briefing on pages 3-6.

You and I probably agree that leadership and management success are closelylinked to having access to timely, high-quality information. That is one reason why you rely on THE DARK REPORT for relevant alerts and market insight unavailable from any other source in our industry. Because our country is now in the midst of an unprecedented economic decline, it becomes even more important for you and your laboratory teamto have rational, detailed intelligence on unfolding events.

At THE DARK REPORT, our response to the deteriorating economy and the probability of major healthcare reform legislation is to recast the upcoming Executive War College on Lab and Pathology Management to provide you with up-to-the minute insights and strategies. This highly-respected gathering of national and global lab industry leaders is now focused on the current critical issues linked to unfolding economic and political events.

If you agree with me that "knowledge is power", then you will want to be with us at the 14th Annual Executive War College in New Orleans on April 28- 29. Expect to learn the latest fromWashington insiders about the likely direction for healthcare reform, how it may positively or negative affect laboratories, and ways that you might shape the debate. Hear from labs that are implementing strategies to conserve cash, improve productivity, and refocus outreach sales to sustain profitable new business.

Am I asking the impossible? With hospitals capping travel and education spending, that may be true. On the other hand, true leaders always find a way to get the information they need to make the right decisions. That is why I hope you convince your administrators that this Executive War College is a good investment—a "must attend" opportunity for you to learn and to bring back strategies that generate huge savings for your lab and hospital!

Unprecedented Times Lie Ahead For Labs

Start with the huge financial hit to hospitals, which has slowed capital spending by laboratories

CEO SUMMARY: Here's a lab industry first: insight and analysis about why hospital/health system laboratories are already feeling the financial pinch as their parent organizations scramble to conserve and accumulate cash. That's bad news for IVD vendors and other lab industry suppliers. And that's not all! Healthcare reform proposals carry the potential to further hamstring the finances of clinical labs and pathology groups.

Lab Management Update: Cleveland Clinic Unveils Plan For New National Esoteric Lab

Target is to serve send-out testing needs of hospitals, health systems, and other labs

Olympus Diagnostics Unit Sold to Beckman Coulter

More consolidation among IVD companies as Beckman boosts its presence in chemistry

CEO SUMMARY: For Beckman Coulter, the opportunity to acquire the diagnostics business of Olympus Corporation was compelling for at least two reasons. One, the chemistry and automation products of both companies are quite complementary. Two, in a steadily-consolidating in vitro diagnostics (IVD) industry, Beckman's acquisition of the Olympus diagnostics unit was an important strategic response. It signals to financial analysts and laboratory customers that Beckman Coulter intends to continue as an aggressive competitor.

Boston's Beth Israel Scores Improvement Gains with Lean

Resollved 10-Year Issue off Hemolyzed ED Specimens!!

CEO SUMMARY: Lean methods are helping laboratories resolve aggravating problems that have been unresolvable for as long as 10 years. At Beth Israel Deaconess Medical Center in Boston, improvement teams involving the laboratory and ED staff addressed high rates of hemolyzed specimens. Collaboration among departments and the use of Lean methods produced swift results. The rate of hemolyzed specimens collected in ED has fallen dramatically and now is comparable with rates across the entire hospital. Even the Beth Israel CEO has celebrated this success.

Competition in Rapid Tests Means Value to Labs

As number of rapid test solutions increase, IVD manufacturers look for ways to add value

CEO SUMMARY: One of the hottest market segments in in vitro diagnostics (IVD) is rapid testing. However, because labs now often have multiple choices when selecting a rapid test, IVD manufacturers recognize the need to differentiate their products by adding additional features and benefits. In the case of 3M's new rapid test for influenza, the ability of the system to deliver results directly into the laboratory information system is one such product differentiator.

Aperio, Cerner Interface Digital Path and Path LIS

Interface allows pathologists to integrate digital pathology system with anatomic path system

CEO SUMMARY: For pathologists watching the market acceptance of digital imaging and digital pathology systems, another milestone has been reached. The nation's largest health IT companies are beginning to develop interfaces between their anatomic pathology laboratory information systems and digital pathology products. One such interface is now available to interface Cerner Corporation's CoPathPlus with the Aperio Technologies' Spectrum pathology (PACS) software.

INTELLIGENCE: Late & Latent

MORE ON: Serco JV

TRANSITIONS : Laboratory Corporation of American

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