Just last month, LabCorp reported that they made $131.4 Million dollars in profit for the latest quarter, on revenue of $1.19 Billion. That was a 17% increase in profits as compared to the same quarter last year. Obviously LabCorp stock (NYSE: LH) went up to a new yearly high and all the senior executives high-fived each other.

Well that was last month. Just a few days ago Labcorp went to the state and local governments in North Carolina for a handout of taxpayer money.  LabCorp wants to consolidate its billing operations and if it selects Greensboro as the location of the new facility, it would receive nearly $900,000 in taxpayer money. That’s free money from the taxpayers that will never be repaid.

Making a lab error on a blood test can have a serious impact on a life. I don’t know if LabCorp employees don’t care, or if they are simply numb to the impact of their lab errors because they rapidly run through so many blood tests. This is part of their “quantity is more important than quality” problem.

I received this email from Natasha today. I don’t know what I would do if this LabCorp lab error occurred during a blood test on my child. It is devastating news that no one should have to endure as a result of a lab error.

Angelman Syndrome - Click for Large Image

LabCorp diagnosed my son with a rare genetic disorder called Angelman Syndrome by a Methylation blood work test. This syndrome is characterized with mental retardation, lack of speech, and seizures just to name a few symptoms. Our family was devastated, and we grieved for months.

When he got in to see a neurologist, he ordered another test to get more information about which type of the syndrome he may have. This test came back negative. We were shocked, but tried not to get our hopes up too high because we did not know which test was accurate. When we finally got in to see the geneticist, he ordered another round of genetic testing, this time a more detailed test called a cgh, as well as the original test. All negative.

LabCorp told the genetic counselor that they think they switched his blood. For privacy reasons they wont tell us anything, but assured her that they would try and find the child who really has this condition. As relieved as we were to have the good news, we are so angry for this mix up happening in the first place. Months and months of our lives were taken from us, and I still have not received one phone call from Lab Corp. We are unsure how to proceed from here. Anyway, this is an EXTREMELY abbreviated version of the story. Please let me know if you would like more information, I will do anything to help, no family should go through what we experienced.

My recommendation to Natasha is that she find a lawyer and sue LabCorp for punitive damages. A blood test lab error of this magnitude should be sufficient grounds for a lawsuit. One that I am sure LabCorp would settle quickly before the news quickly spreads and their testing service loses even more credibility.

The days between getting LabCorp’s lab results and finding out about LabCorp’s error were probably Natasha’s worst days of her life. No health services provider has the right to do  this to anyone. It’s obvious that Laboratory Corporation of America understands money, so they should pay for their mistake. In addition, government regulators should step in so that this never happens again.

The United States Food and Drug Administration issued a letter to LabCorp warning them that they are in violation of the law. LabCorp doing illegal things brings up their checkered past, when they were charged with fraud in the LabScam investigation.

The FDA warning letter and possible criminal and civil action against LabCorp could be the beginning of the end for Laboratory Corporation of America. I say this because as one government agency moves against them, there are possibly other government agencies that might step up to further investigate other allegations against the company. It’s about time that this regulatory oversight process start. For too long LabCorp has focused on the buck as opposed to the law and the required quality standards. In my own opinion, it is a company that is out of control.

Here’s the FDA story:

WASHINGTON, Oct 8 (Reuters) – Laboratory Corp of America (LH.N: Quote, Profile, Research, Stock Buzz) is violating the law by selling an ovarian cancer screening test without regulatory approval, U.S. health officials said on Wednesday.

The OvaSure test does not fall in a category that can be sold without prior clearance from the agency, the Food and Drug Administration said.

“Because you do not have marketing clearance or approval from the FDA, marketing OvaSure is in violation of the law,” the agency said in a letter dated Sept. 29.

The agency told the company to “take prompt action to correct these violations.”

LabCorp spokesman Eric Lindblom said the company was “disappointed” by the letter.

“We are currently in discussions with the FDA over the next steps and of course we share the FDA’s determination to assure patients are protected,” he said.

The company started selling the blood test in June, saying it could detect early-stage ovarian cancer in high-risk women.

The FDA letter was posted on the FDA website. You can read the full letter by clicking here.

LabCorp shares (NYSE: LH) fell nearly 1.8 percent today to close at $60.63 on the New York Stock Exchange.