September 2008
While Quests second quarter revenues were up 12 percent to $1.8 billion and LabCorps were up 10 percent to $1.1 billion, Wall Street analysts were dismayed by LabCorps (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.
Subscribers: click here for the full story
 Non-Subscribers: click here to subscribe
|
|
|
Archives
|
|