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      Headlines - August 13, 2001
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R. Lewis Dark: Medical Errors Reporting Will Affect Labs

Certainly HIPPA seems to be getting lots of attention by all categories of healthcare providers, including laboratories. But I think the movement to disclose medical errors may eventually prove to be the more serious issue for the clinical laboratories and anatomic pathology groups.

Our members and clients know that just last month JCAHO began requiring hospitals to disclose to patients whenever their care did not measure up to standards. Recently, two hospitals disclosed such incidents. In Valhalla, New York, 996-bed Westchester Medical Center released a statement to the press on July 30 taking responsibility for an accident in the hospital which killed a six-year-old boy. Michael Colombini was undergoing an MRI. He was struck in the head by a steel oxygen canister which was pulled toward the 10-ton MRI when it was turned on to start the scan. The oxygen canister, about the size of a fire extinguisher, was not supposed to be in the MRI room. The next day, on July 31, 172-bed St. Agnes Medical Center in Philadelphia issued a statement to the press acknowledging that laboratory tests supporting coagulation therapy had been miscalculated, leading to the wrong dosage of Coumadin, a blood-thinning drug. The hospital said 932 patients had been affected, and this problem may have contributed to the death of two elderly patients. (See pages 5-6 in this issue.)

All of us know about lab errors and the ever-present human element. Just a few years ago in Chicago, there was a case where a pathologist lost the specimen before it was evaluated, but concealed the fact and issued a diagnosis anyway. When the real facts were discovered, the referring hospital yanked its business relationship with the clinical lab and there was a major reorganization of the pathology group which had issued the diagnosis.

The movement to openly disclose medical errors is gaining political and cultural support. Labs and pathology groups have different exposure than other categories of providers. All laboratorians know the complexities of performing a lab test. Look at the variables that can affect a test result: specimen collection, transport, in-lab specimen handling and labeling, reagent lot variability, a particular test's sensitivity and specificity, performance of the instrument, et al. Will the lay public understand all the subtleties of the lab testing process? Certainly not! I think that is why the movement to report medical errors may eventually have a far-reaching impact on the laboratory industry.


British Firm Acquires Sunquest Info Systems

Healthcare software companies undergoing further consolidation

CEO Summary:  Sunquest Information System was recently acquired by Misys Plc, a software company based in the United Kingdom. The transaction is another example of consolidation within the healthcare software sector. It also demonstrated that software products developed in the United States are seen to have good potential in overseas markets, particularly Europe.


Big Jump Predicted in Health Insurance Costs

Early indications are that premium price increases for 2002 will be as much as 20%

CEO Summary: Spiraling health costs are about to become a headline issue once again. There is widespread evidence that health insurers are seeking premium increases of 20% from the nation's biggest employers. Aetna recently announced a second quarter 2001 operating loss of $95.9 million. Increased utilization was a major factor in the loss. Labs may find it tougher to negotiate higher test prices.


Dynacare Expands Into Chicago With Purchase of Two Small Labs

Slow pace of independent lab acquisitions demonstrates that few lab prospects remain


Point-of-Care Kiosk Improves Outcomes In Emergency Department

Mass General Hospital Supports POC Testing

CEO Summary: Steady increasing numbers of patients at Massachusetts General Hospital exceeded the capacity of its emergency department. Challenged to help with the situation, lab administrators created a point-of-care testing kiosk within the emergency department (ED). This unique lab project proved to be a home run. Length of stay in the ED was reduced and the admissions rate was lowered by a significant amount, more than covering the added cost of point-of-care testing. It's another demonstration that added value lab services can change the cost/quality paradigm for the better.

TDR Story Update: Northwest Hospital Laboratory Supports Reduced Infection Rate

On-site microbiology molecular typing lab now tracking antibiotic-resistant bacteria


Intelligence: Late-Breaking Lab News

New Technology to Speed Protein Discovery Process:  In the spirit of 1998, the introduction of Perkin Elmer Corp.'s newest genetic analyzers accelerated the mapping of the human genome.

Tricor's CEO Retires: After almost 5 years of leadership at TriCor Laboratories in NM, CEO Linda Cole is retiring.


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