Regional clinical laboratory providing diagnostic testing services to healthcare providers.
Acquired by Cerberus Capital Management2018-07-01
Regional laboratory leadership with comprehensive testing menu and rapid turnaround times
Reduced staff and higher patient load leading to longer wait times for diagnostic test results
Elimination of less profitable but essential diagnostic tests like genetic screening or rural care services
Aggressive upcoding for higher-reimbursement procedures and diagnoses to extract more revenue
Potential sale-leaseback of clinical laboratory facilities to extract equity for investors
Cosmetic changes like leadership shuffle and 'optimization' announcements
Staffing cuts under 'efficiency' programs, service line reviews begin
Noticeably longer wait times for test results, some essential services discontinued
Major issues like service closures, billing scandals, or quality control lapses
Potential bankruptcy, fire sale, or acquisition by another operator
Other companies that followed a similar path after PE acquisition
Monitor for changes in wait times for test results and availability of essential diagnostic services
Watch for billing issues or unexpected charges related to upcoding of procedures
Consider switching to alternative clinical laboratories if quality of service declines substantially
Community-focused healthcare
Integrated managed care consortium