Vultures are circling many labs

[WEBB PINKERTON]

Quest says small labs ripe for acquisition as coronavirus pandemic sets stage for industry consolidation

"If anything, the pandemic could be an essential catalyst to help drive industry consolidation," Quest CEO Steve Rusckowski said.

www.cnbc.com

---

Members don't see this ad.

 

[Med Director New England]

Nearby Academic pathology groups imo are more dangerous to small private path groups. I know of two examples in just the last few years of a small hospital merging into a academic system resulting in the established pathologist(s) losing their jobs without cause and very little notice.

these moves werent made in malice - it just made sense b/c all the work could be easily absorbed noticed by the larger group.

 

[Alteran]

Read the article. What wasn't mentioned is to what degree PAMA played in making smaller laboratories nonviable and ripe for acquisition by mega labs that have enough of an economy of scale to absorb the losses.

 

[WEBB PINKERTON]

Covid delayed the PAMA cuts for year thankfully. PAMA definitely is leading to lot more consolidation. We are heading toward a national duopoly, which is bad as this pandemic has shown. Rich always get richer in these times of chaos and much competition will die off.

Lab testing is in the news nightly and yet no pathologists, lab professionals are speaking up. Tells you everything you need to know about our field.

 

[KeratinPearls]

Nearby Academic pathology groups imo are more dangerous to small private path groups. I know of two examples in just the last few years of a small hospital merging into a academic system resulting in the established pathologist(s) losing their jobs without cause and very little notice.

these moves werent made in malice - it just made sense b/c all the work could be easily absorbed noticed by the larger group.

Yup CCF and Case Western control all of Cleveland and surrounding areas.

 

[dingdong28]

Yup CCF and Case Western control all of Cleveland and surrounding areas.

Do you work at CCF or UH? I've worked for both and at labs where UH was beginning to implement changes (currently working at one still undergoing changes). Some of these buyouts have forced techs into retirement for a variety of reasons. Our pathologist's didn't lose their jobs, but they were already working part-time hours. It seems like our pathologists rotate through each hospitals or a certain region. I wonder how long it'll be before Lake Health and Mercy are taken over be either organization.