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Commentary
& Opinion by R. Lewis Dark, Founder & Publisher
Today
I would like to do some crystal ball-gazing as a way to make a point about
strategic business planning for laboratories. As you will read on
pages 15-17, our Editor-In-Chief has analyzed the year-end balance sheets
of the two
The purpose of his intelligence briefing is to assess the balance sheet
strengths and weaknesses of Specialty Laboratories, Inc. and Dynacare, Inc., and
provide clients and regular readers of the Dark Report with an understanding of
why the business strategies of these two companies will unfold differently in
the next couple of years. After all, both companies maintain a
high-profile within the lab industry and both companies have differing business
strategies with a common theme—each lab company wants to do more business with
hospital laboratories.
Many hospital lab administrators and pathologists are personally touched
by the business strategies of these two companies. It happens when
Dynacare execs show up to discuss joint ventures with the hospital or when
sales reps from Specialty Labs call to solicit reference testing business.
Of course, there are other commercial labs and other reference labs
calling upon hospitals to pitch lab joint ventures or get more send-out
business. Each of these lab competitors has a different mix of
strengths and weaknesses–financial, operational, and geographical.
But if a hospital lab is going to choose a joint venture partner or a new
send-out lab, it wants to be confident that it understands the differing
strengths and weaknesses of these potential partners and reference testing
sources.
As you read the intelligence briefing on pages 15-17, I hope it gives you
new insights about how a balance sheet can help or hinder a laboratory
company. The different balance sheets of Quest Diagnostics
Incorporated and Laboratory Corporation of America as of January 1997
partially explain the different business paths each company has followed
since that date. The same will hold true for Dynacare and Specialty
Laboratories, given their respective balance sheet positions as of December
31, 2000.
Having this type of business knowledge about potential joint venture
partners and reference lab sources helps hospital lab directors make
better decisions when considering RFPs (request for proposals). It
is also a useful way to gain competitive business advantage when trying to
sort out which labs will be winners and which labs will be losers in the
future.
The
Dark Report Honors Lab "Movers & Shakers"
Management
leaders who are guiding their laboratories to uncommon success
CEO
Summary: It's time again to recognize and honor the lab industry's strong
leaders in innovative management. These laboratory executives are
implementing business strategies designed to positions their lab organizations
to serve the changing needs of the healthcare system. Their vision and
willingness to "stay the course" are traits they hold in common.
New
Cytology Technology Entering Study Phase
AmeriPath
signs agreement with Ampersand to develop technology and do clinical
studies
CEO
Summary: There's a new contestant in the ongoing battle to win the Pap smear
technology wars. Ampersand Medical Corporation, by signing a strategic
alliance with AmeriPath, Inc., has signaled that it's ready to bring its
technology to market. AmeriPath will play a major role in expediting
clinical studies and both companies hope to formally start the FDA approval
process within the next three or four months.
Tissue
Banking May be Source of New Pathology Revenues
Infant
field expanding rapidly
CEO
SUMMARY: Evidence is accumulating that tissue banking may be where the
"rubber meets the road;" where pharma money funds technology
enhancements that directly benefit the profession of pathology. Without
question, the need by pharma, biotech, and genomic companies to access, analyze
and understand the tissue of targeted subpopulations is creating an opportunity
for savvy pathologists to make money by aiding in the identification and
collection of such tissue specimens.
Specialty
Labs and Dynacare Have Balance Sheet Differences
Differing
financial strengths and weaknesses will affect each lab's future growth
& expansion
Labcorp
Aquires New Hampshire-based Path Lab, Inc.
Medplus
Founders Financially—Quest to the Rescue?
More
on: Medplus
Pharmchem
Escapes California
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