Outreach laboratories are enjoying 20 percent to 27 percent profitability, based on contribution margin or pretax income, compared to Quest Diagnostics’ 13.7 percent and LabCorp’s 17.8 percent for 2008, according to results from the 8th Annual National Outreach Survey, conducted by Washington G-2 Reports and Chi Solutions. Revenue per requisition is also up to $65.95 for 2008, compared to $43 for Quest (Madison, N.J.) and $38.38 for LabCorp (Burlington, N.C.). However, the survey of over 150 respondents found that outreach programs still have significantly higher days sales outstanding (DSO) and bad debt rates compared to the national competitors—two metrics under close scrutiny during this economic environment.

July 2009 - Table of Contents

LIR July 2009 (full PDF issue)

G-2 Reports-Chi Solutions’ Outreach Survey Indicates Labs Leading in Profitability Measures, Falling Short on Bad Debt and DSO

LabCorp Plans to Acquire Monogram Biosciences for Approximately $155 Million

Senate Bill Proposes ‘Date of Service’ Policy Change That Will Benefit Labs

Genoptix, Myriad Genetics Lead in G-2 Reports’ First Quarter Benchmarking Analysis

Psychemedics Teams With UK’s Bupa to Market Hair Analysis Assay

Inside the Lab Industry: Washington G-2 Reports-Chi Solutions’ Latest Survey Finds Outreach Lab Profitability Over 20% and Annual Revenue Growth Over 3%

The C-Suite Perspective: Building a Business Case for Outreach

Agendia Boosts MammaPrint Sales Effort Through CLIA Lab Launch, Sales Force Expansion

GE’s $100 Million Stimulus Simplicity Program to Offer No-Interest Loans for EMR Products

CBLPath Opens Manhattan Facility

Adeona Pharma Buys Chicago’s Hartlab to Expand Degenerative Disease Diagnostic Offerings

Lab Stocks Continue Impressive Show of Strength; Up 11% Over Five Weeks, 32% Over Past 13 Weeks

Industry Buzz: CDC Seeks Help in Establishing Laboratory Best Practices