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       Headlines - November 27, 2006
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R. Lewis Dark: Proving that Pathology’s Popular Wisdom Is Wrong

IN THE ANATOMIC PATHOLOGY PROFESSION, THE POPULAR WISDOM is that any pathology group practice needs one or more hospital contracts as the primary source of specimens necessary to financially sustain the practice. Outreach specimens sourced from physicians’ offices then represent a profitable supplement to the hospital business served by the pathology group.

Three years ago, this popular wisdom was challenged by pathologist Raman “Ray” Sukumar, M.D., of Dover, Maryland. For reasons described in our briefing on pages 9-15, Sukumar decided it was time to strike out on his own. His vision was to build a pathology laboratory in an office building, create a mobile pathology laboratory in a van, and bring pathology services directly to the doorstep of physicians’ offices, ambulatory surgery centers, diagnostic imaging centers, and other outreach clients.

The business outcome to Sukumar’s entrepreneurial effort demonstrates that it is possible to grow rapidly and make money offering general pathology services to office-based physicians and other non-hospital providers. In fact, over the 41 months since opening for business, the volume of specimens flowing into Sukumar’s general pathology practice now supports three full-time pathologists!

I consider this to be one of the single most remarkable business stories in the anatomic pathology profession since we launched publication of THE DARK REPORT in 1995. What Sukumar has accomplished is worthy of study by any pathologist with ambitions to create a physician-centered, patientfriendly pathology practice. Sukumar exemplifies all the attributes of a successful entrepreneur, particularly his willingness to shoulder the financial and professional risk of building a new pathology business from scratch.

At a time when local pathology is under siege from an ever-increasing number of national labs, specialty test providers, and similar competitors, Sukumar has demonstrated that the business model of an office-based generalist pathology practice can compete locally on equal terms with all competitors. Long-time clients and regular readers of THE DARK REPORT know we hold the conviction that all healthcare is local and pathology services provided at the point of care are generally best for physicians and patients. Dr. Sukumar’s entrepreneurial success demonstrates that this statement remains true and it should be an inspiration to the pathology profession.



New & Stefanelli Launch Anatomic Path Venture

Aurora Diagnostics is the latest company to gain investor backing and start operations

CEO SUMMARY: With little fanfare, Aurora Diagnostics, Inc. opened for business last summer. It states that it has already signed acquisition agreements with five different pathology groups. Former AmeriPath executives James C. New and Martin J. Stefanelli are leading Aurora Diagnostics. Handling business development activities for Aurora will be Christopher Jahnle and Kirk Rebane of Haverford Healthcare Advisors.



Labs Need Response to Physicians' Use of EMR

Increased use of EMRs in physicians' offices generates new connectivity challenges for labs

CEO SUMMARY: A new trend is emerging in outreach laboratory IT systems. Labs are linking to the electronic medical record (EMR) systems in their physician clients’ offices. Delivering lab results to these systems is already common. Enabling electronic order entry is the next wave. Clinical labs and anatomic pathology practices will need to offer effective "Lab-EMR Gateways" to maintain their competitive position.



Pathologist Builds General Path Business From Office Lab

Delivers POC Anatomic Path Services To Doctors

CEO SUMMARY: Doctors Pathology Services in Delaware is successful for two reasons. First it runs the largest pathology lab in the state. But more important, it runs one of the few successful mobile pathology services anywhere. The Mobile Intraoperative Consultation Service (MICS) allows the pathologist to do pathology work on site at ambulatory surgery centers, physicians’ offices, or hospitals as needed. The MICS also allows the pathologist to consult with and market directly to physicians, as well as to meet with patients. It’s a business model that offers many advantages for entrepreneurial pathologists.




Acute Histotech Shortage Grows Across the USA

Trends in histology point to a widening gap between supply of labor and demand by labs

CEO SUMMARY: Pathology laboratories are enjoying steady increases in specimen volume and revenue as new molecular assays gain acceptance by clinicians. However, the supply of histotechnologists is failing to keep pace with growth in the volume of tissue-based testing. One executive who places histotechs into laboratories predicts that competition among labs for skilled histotechs will intensify.



INTELLIGENCE: Late & Latent

COMPETITIVE BID DEMO APPROACHES, BUT NO DETAILS FROM CMS

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