While Quest’s second quarter revenues were up 12 percent to $1.8 billion and LabCorp’s were up 10 percent to $1.1 billion, Wall Street analysts were dismayed by LabCorp’s (Burlington, N.C.) increase in bad debt to 5.28 percent and the addition of $45 million to the allowance for doubtful accounts. Blaming the slowing economy, LabCorp executives indicated that higher patient copays and reduced collection of self-insured payments are driving the bad-debt increase. In addition, volume growth was relatively flat compared to the first quarter at 1.4 percent (and 1.3 percent in the second quarter of 2007), forcing LabCorp to lower its 2008 revenue guidance to 10.3 percent to 11.3 percent from the original projections of 13 percent to 14 percent.

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September 2008 - Table of Contents

LIR September 2008 (full PDF issue)

Bad Debt, Weak Volumes Force Lower ’08 Guidance for LabCorp Despite Revenue Rise of 10%, Quest Up 12%

LabCorp Finalizes Stanford Outreach Acquisition for Rumored $30 Million

Legislative Update: New House Bill Seeks to Overhaul Lab Fee Schedule

ViraCor Labs Expecting 35% Rev Growth to $27 Million in 2009

Pod Lab UroPath Acquired by HealthTronics for $7.5 Million

EMRs Falling Short in the Lab as Push Continues for $100+ Billion Nationwide Network

Inside the Lab Industry: Bait and Switch an Issue as Lab Equipment Leasing Rates Climb

Navigenics, 23andMe Now Licensed to Test in California

Lab Stocks Showing Gains; Up 7% Over 5 Weeks, Up 4% for Year

Independent Labs Ineligible for CMS’s PQRI Program