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      Headlines - September 12, 2005
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R. Lewis Dark: A Tale of Two Hospitals

DURING THE PAST TWO WEEKS, we've watched as the nation's 35th largest city—New Orleans—and a metropolitan area encompassing more than 1 million people has literally ceased to exist. Today this region is effectively a ghost town and former residents are scattered throughout the United States.

This event is unparalleled in American history. The closest natural disaster I can relate to this event is the San Francisco earthquake of April 1906. The earthquake, and the fires which followed, destroyed threequarters of the city and left 300,000 people homeless. Thus, the impact of Hurricane Katrina on Louisiana, Mississippi, and Alabama is without precedent. It also is a warning for all laboratories and pathology group practices. Emergency planning and disaster response scenarios should receive more attention and resources.

I offer, as an example of good emergency planning, the experience of Tulane University Hospital and Clinic (TUHC), owned by for-profit HCA Inc. Last fall, HCA had a"hurricane lessons learned" meeting in Orlando, Florida. This was to develop emergency plans using the experience of the three hurricanes which hit Florida that year. With Hurricane Katrina approaching, HCA executives created a crisis-management team at corporate offices in Nashville to identify needs, model scenarios, and provide resources to its hospital, located not far from the New Orleans Superdome.

When the hospital began to flood,"we were unable to get any governmental help in evacuating," declared Norman McSwain, M.D, Professor of Surgery at Tulane and Trauma Director at Charity located across the street from Tulane and operated by the state of HCA's response was to charter 20 helicopters from various sources. that communications would be a problem, they flew ham-radio operators New Orleans to coordinate the airlift! In the next few days, HCA airlifted patients and 1,200 staff and family members from TUHC. HCAalso helicopters to evacuate patients and staff from Charity Hospital.

I make two observations about the tale of these two hospitals. First, it is a heartwarming example of American initiative and ingenuity at its best. Second, it's a sad comment about the failings of bureaucratic government agencies. Despite access to immense resources, these agencies cannot make bold decisions and act expeditiously, as did HCA in this disaster.



Houston Lab Fills Gap For Katrina Evacuees

With evacuees pouring into Houston, area hospitals responded with lab services

CEO SUMMARY: Literally overnight, Houston found itself dealing with tens of thousands of evacuees fleeing the destruction in New Orleans and surrounding areas. Many evacuees arrived in poor health. The Harris County Hospital District laboratorians of Houston pitched in to create an emergency laboratory support system that was surprisingly sophisticated. Here's how labs in Houston met the challenge.



Lab Suppliers Step Up In Katrina's Aftermath

Industry firms were often first to get supplies and relief to laboratories affected by the storm

CEO SUMMARY: It's a story that escapes media coverage. As Hurricane Katrina advanced northward, often the first source of fresh supplies and disaster relief for laboratories affected by the storm was their instrument vendor or other supplier. Many of these companies were pre-positioning needed laboratory supplies and relief items even while Hurricane Katrina was still offshore.



Molecular IVD Rankings

Molecular Diagnostic Companies: Ranking By 2004 Annual Revenue

Assessing Growth in Molecular Diagnostics



Sonic Healthcare Buys Clinical Pathology Labst

Nation's largest private commercial lab firm will be acquired by Australia's largest lab

CEO SUMMARY: It's one of the most interesting lab acquisitions to take place in the past decade. Pathologist-owners of Austin, Texas-based Clinical Pathology Laboratories, Inc. are selling up to 85% of their lab company to Sonic Healthcare, Ltd, Australia's largest laboratory firm. The acquisition brings a new lab competitor into the U.S. market and is likely to trigger significant changes to the status quo.



Sonic HealthCare In US: How Will Market Change?

In the same month, LabOne sells to Quest and Sonic Healthcare buys CPL in Austin

CEO SUMMARY: LabOne, Inc.'s acquisition by Quest Diagnostics Incorporated, announced in early August, removes, as a competitor, a lab company that was growing and beginning to credibly challenge the two blood brothers. Just weeks later, Sonic Healthcare Ltd.'s purchase of Clinical Pathology Laboratories, Inc. of Austin, Texas brings a brand-new competitor into the national lab market.



HCA Buys IRL From MDS, Makes Plans for Future

South Florida laboratory operation supports 13 HCA hospitals and has outreach program

CEO SUMMARY: When HCA purchased the MDS partner share in Integrated Regional Laboratory of Ft. Lauderdale, Florida, it marked the end of MDS Laboratories' ten-year"United States Adventure." It also put HCA in full ownership of an automated core laboratory and a laboratory outreach testing program full of promise. Efforts are underway at IRLFLA to build specimen volume and revenues.


INTELLIGENCE:

HOSPITAL ON WHEELS TRAVELS TO GULF COAST FROM NORTH CAROLINA

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