Consolidating clinical services

They expanded it to a clinical and anatomic pathology laboratory and simultaneously founded a pathology group that grew from two to 35 pathologists covering 18 California hospitals, then sold the clinical lab business to Lab Corp in 2000.After the non-compete clauses in that deal expired, Dr.It was a different corporation and provided services to the independent lab on a contractual basis. “Despite the big Kroger and Safeway stores with their cost advantages, there’s still room in some markets for some specialty stores like butchers or fishmongers.

Where enforcement is lax—as it can be when smaller operations are involved—it becomes a major source of pressure on independent labs trying to survive. Lui and partners sold the entire independent lab portions of the business to Lab Corp. In terms of the pathologist-built, pathologist-owned, and pathologist-operated labs, we were virtually the last one.

The associated pathology group with its hospital-based practice remained intact. They are being absorbed by bigger organizations that have lower overhead and can perform tests, because of immense buying power, for fractions of the costs of little labs.” It’s a phenomenon similar to Walmart’s or Amazon’s takeover of a large segment of the retail business in their segments, Dr. But he prefers to analogize the laboratory industry to the food industry.


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