Quest Diagnostics to acquire LabOne for $934M

It brings Quest extra business in life insurance testing, an area in which it has not led the market. "The deal fits strategically, though some holders likely prefer share buybacks," Dolliver wrote. "Quest Diagnostics enters the life insurance testing market with a leading position." Quest plans to finance the deal through a combination of cash on hand, available credit facilities and public debt.

Quest Diagnostics to acquire LabOne for $934M - Health-Care - M&A

BioBOOM OP/Ed: Strong move into the insurance testing market. We watched this business at Lab One (formerly HORL) which was started by a pathologist group and futuristic thinking sales and marketing type, Jim Osborn. Who sold it for a tidy sum and when his non-compete ran out then created Osborn Labs which later was merged back into Lab One. These were truely the first "macro" laboratories providing some of the early advances in high throughput processing. Key for the business has been the relationships with clients (insurance industry) and the lab. They were, at one time, owned as a service entity by the re-insurance principles. We once thought, as Clinton Adminstration was working on their imploded health care proposal, that if the gov't became defacto insurance of last resort - these kinds of operations may not only do risk assessment for life insurance applications but also pre-emptive screening for health insurance clients. For example wouldn't it be better to pay for HCV sceening now on a routine basis than a liver transplant if not detected and treated early? Could routine screening come as an added benefit to your policy IF they couldn't drop you? Genetic screening opens all kinds of ideas .... funny despite the paranoid claims these labs didn't do any genetic screening. Most simply are doing drug abuse work for truck drivers, 100k+ levels for HIV so someone won't lie on an insurance application nd the same for nicotine = say you don't smoke? Well you better not come up positive on the nicotine test

1 comment:

Blue Cross of California said...

Great blog I hope we can work to build a better health care system as we are in a major crisis and health insurance is a major aspect to many.

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