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R. Lewis Dark: More Crime, More Consolidation, and a New Threat
IT'S A SHAME THAT OUR LEAD STORY IN THIS ISSUE IS CRIMINAL INDICTMENTS of
six former IMPATH executives. It is a black mark on the lab industry and is
just one more factor that makes it tougher for honest laboratorians to successfully
lobby Congress on adequate funding for laboratory testing services.
Our follow-up story to crime at IMPATH is news of the just-announced
sale of Esoterix, Inc. to Laboratory Corporation of America. It's another
example of further consolidation within the laboratory industry. When
Esoterix is bought by LabCorp sometime in the next ten weeks, it will remove
another independent competitor from the national lab services marketplace.
Once you get past those two stories, you will find a detailed interview
with Eric Drew. He's the cancer patient, near death, whose identity was
ripped off by a phlebotomist in the hospital where he was being treated.
Discovery of the crime launched Drew into an extraordinary investigation
which culminated in the conviction of this nefarious lab worker
under the HIPAA (Health Insurance Portability and Accountability Act)
statute. It was the first-ever federal conviction of a HIPAA crime.
I'll bet you didn't hear about this story. Although it was national news
when Gibson was convicted last summer as the first individual ever to be
charged under HIPAA (Health Insurance Portability and Accountability
Act), few people in the lab industry gave it more than passing interest.
That changes with this issue of THE DARK REPORT.
Drew's story is exclusive to THE DARK REPORT. We have extensively
researched these events for an important reason: lab managers and
pathologists need to know how vulnerable their laboratory or pathology
group practice is to the crime of patient identity theft. During the course
of his interview with THE DARK REPORT, Drew explains, for the first
time, many new details of how his identity was stolen. He also discusses
the"do nothing" attitude of the hospital's privacy and compliance
people when he first alerted them to the crime and requested their help
to identify the perpetrator and bring him to justice.
I was shocked when I read Eric Drew's story. I believe the majority of you
will also be shocked. I use the word"shock" deliberately. From the hospital
to the police, the system failed Eric Drew—utterly and totally. My common
sense tells me that the majority of labs and pathology group practices would
do the right thing were a patient to show up and declare his/her identity was
stolen and he/she has good reason to believe it occurred in the lab. But then
again, do you have equal confidence that the privacy officer in your lab would
acknowledge the possibility of a crime and support this patient in the search
for truth—regardless of where it may lead your laboratory?
Ex-IMPATH Executives Face Criminal Charges
Federal government files various charges against six former IMPATH executives
CEO SUMMARY: With the announcement by Federal prosecutors
of criminal and civil actions against a total of seven
ex-IMPATH executives, IMPATH becomes the laboratory
industry's worst criminal scandal. Federal prosecutors contend
these executives, during their employment at IMPATH,
engineered an accounting fraud that resulted in manufacturing
as much as $64 million in non-existent revenue.
LabCorp Buys Esoterix For $150 Million in Cash
"Low" sales price surprises observers, another competitor removed from market
CEO SUMMARY: Laboratory Corporation of America continues
to display an appetite to grow by acquisition.
However, its purchase of Esoterix, Inc. creates unique management
problems for LabCorp, because Esoterix is itself a
product of a lab acquisition strategy. Over the past ten
years, Esoterix acquired national specialty labs in coagulation,
endocrinology, flow cytometry, and allergy testing.
NEWSMAKER INTERVIEW: Eric Drew
Victim of First HIPAA-Convicted Crime Tells Story & Offers Advice to Labs
CEO SUMMARY: Eric Drew's story may be one of the most amazing to have
happened in the modern age of laboratory medicine. It is actually two stories,
intertwined. In the first, a patient with the nearly-always fatal diagnosis of acute
lymphoblastic lymphoma fights for his life, desperately trying one experimental
procedure after another. In the second, an employee of the laboratory in the
hospital providing these treatments decides this patient, expected to die sooner
rather than later, is the perfect victim for identity theft. What the phlebotomist
did not count on was that his crime would actually motivate the victim to
fight—both for his life and to see the thief of his identity brought to justice. THE
DARK REPORT is presenting this exclusive interview with the victim, Eric Drew, as
a way to help laboratories and pathology group practices understand how to
improve their defenses against patient identity theft committed by their own employees. Pamela Scherer McLeod conducted this interview.
Avoid Patient ID Theft With Proactive Steps
Eric Drew's remarkable story reveals vulnerability of every lab to this crime
CEO SUMMARY: Identity theft is one of America's fastestgrowing
crimes. Not only that, it is simple to commit and can be done by anyone. Few laboratories and pathology group practices are prepared to deal with the crime of patient identity theft. Labs should proactively move to implement protections against patient identity theft and raise the awareness of employees to this type of crime.
INTELLIGENCE:
FLORIDA DOCTORS
ESTABLISH THEIR OWN MEDICARE HMO
WHERE ARE THEY NOW?
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