Clinical laboratory services company providing diagnostic testing for hospitals and physicians.
Acquired by Ares Management2018-10-16
Regional laboratory platform with hospital outreach services
Solstas Lab Partners will likely reduce the number of skilled laboratory technicians and replace them with less trained personnel to cut labor costs
Solstas Lab Partners will likely implement billing upcoding practices to increase reimbursements, leading to higher prices for patients and their insurers
Solstas Lab Partners will likely sell their real estate assets and lease them back, extracting equity for the PE firm while increasing operating costs
Solstas Lab Partners will likely eliminate unprofitable but essential services like rural lab testing, reducing access to diagnostic services for some patients
Announcements of 'optimization' efforts and leadership changes at Solstas Lab Partners
Reductions in skilled laboratory staff, service reviews to identify potential cuts
Longer wait times for lab results, increased billing complexity, and service closures in some regions
Potential quality scandals due to errors or delays in lab testing, patient access issues in rural or underserved areas
Potential bankruptcy or sale of Solstas Lab Partners to another operator, leading to further disruption in lab services
Other companies that followed a similar path after PE acquisition
Monitor for any changes in the availability, quality, or pricing of Solstas Lab Partners' services
Be aware of potential billing changes or upcoding practices that could increase costs for patients and their insurers
Advocate for the preservation of essential lab services, especially in rural or underserved areas that may be at risk of closure
Consider alternative lab providers if Solstas Lab Partners' services become unreliable or inaccessible
Community-focused healthcare
Integrated managed care consortium