LabCorp Sucks
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14 May 10 Alternatives to LabCorp

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Alternatives to LabCorpI recently received an email from Jasmine, a patient who is unhappy with both LabCorp and Quest Diagnostics. I found her complaints interesting so here’s the content and my reply:

Aside from Quest Diagnostics, do you know of any national labs that I can use instead of lab corp? They’re horrible.
Thanks. Jasmine

There are many regional labs but after extensive research I discovered that due to the regulations imposed on labs under the CLIA federal law, and the proliferation of managed care, there are very few labs that can be considered “national” labs. The consolidation of the industry has lead to even more business for these two lab giants. Not surprisingly, when local laboratories expand past the regional phase, either LabCorp or Quest Diagnostics buys them.

 Depending on where you live, there are local and regional labs that offer great services and are likely to be accepted by your insurance. They usually do not have as many service centers as the two large ones and are more likely to work directly with your doctor’s office. An example is Bio-Reference Labs in New Jersey and New York, Florida Reference Labs in South Florida and other such smaller lab companies. There are also others where you can mail in your specimen and have direct access to results. One of the leaders is Direct Laboratory Services (DirectLabs). The problem with them is that while you are dealing with DirectLabs through the web but you are also dealing with LabCorp, as they will send you to LabCorp to give blood for the test. This is basically a wholesaler that has LabCorp doing all the work for them and they provide the results for you. They only accept credit card payments and do not accept insurance. While their prices are lower than going directly through LabCorp, you will experience all the frustrations of dealing with Laboratory Corporation of America locations.

LabOne was considered a formidable contender but got acquired by Quest Diagnostics. Almost on a weekly basis, you will notice national labs acquiring smaller regional ones. Another option is using a hospital based lab. The problem with hospital based alternatives is that they may charge more for the services. If you’ve had enough with the big national laboratories, check with your insurance company to see the regional labs that are part of their approved networks.

It reminds me of the old AVIS rent a car ads whose slogan was “We try harder.”

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08 Mar 10 LabCorp Under Investigating by the U.S. Department of Labor

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Department Of Labor Compalint Against LabCorpThe United States Department of Labor is investigating Labcorp for not being in compliance with their affirmative action plan and for discriminating against certain sectors of the population. In a recent letter received by LabCorp Sucks from a former employee, the U.S. Department of Labor, Employment Standards Administration’s Office of Federal Contract Compliance Programs requested that their Jacksonville, Florida office consider the allegations made by the former employee when conducting future compliance evaluations of Laboratory Corporation of America.

If Laboratory Corporation of America (LabCorp) is found to not be in compliance and fails to correct the problems, they can be sanctioned and could even be restricted from participating in the Medicaid and Medicare program, two major income sources for the Laboratory company. LabCorp can also be prohibited from participating in other government programs, including the CHAMPUS program (The Civilian Health and Medical Program of the Uniformed Services) that provides laboratory services to government employees, and to Veterans Administration program beneficiaries. LabCorp currently contracts with all these government programs to provide reference laboratory services to program participants. Since many HMOs that serve the beneficiaries of these federal programs also contract with LabCorp, the HMOs would also be restricted from using LabCorp. The loss in business could be in the hundreds of millions and could be catastrophic to LabCorp stock (NYSE: LH).

LabCorp’s discrimination problems have been well known to company insiders. The company has various lawsuits pending and has had to settle others by paying out millions. In a recent Florida case, LabCorp even had to fire the law firm representing them after accusations of obstruction of justice by the firm.

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