Laboratory Services

Q1-2018 Laboratory Services Update– Uncertainty in the greater healthcare industry continues to trickle down to the laboratory services sector. Questions around the Medicare market-based national fee schedule and the expectation of major payment cuts for laboratory tests looms on the horizon. This reimbursement uncertainty has continued to fuel a robust consolidation market, with many small to mid-sized providers turning to consolidation to fend off industry headwinds.

Q4-2017 Laboratory Services Update– The end of 2017 saw the rich get richer in the laboratory services industry. Many notable players in the industry made sizeable acquisitions.

Q3-2017 Laboratory Services Update– The laboratory services market continues to be dominated by two global providers; LabCorp and Quest Diagnostics. With the Centers for Medicare and Medicaid releasing a draft of 2018 reimbursement rates in September, the industry could see as much as a 10% hits to reimbursement rates across the board. While a decrease was anticipated, this outcome is far worse than anyone expected. The ability to leverage size and scale has allowed the industry’s largest providers to capitalize on this news.

Q2-2017 Laboratory Services Update– The laboratory services space continues to see significant consolidation among niche test providers. Strategic acquirers continue to outbid private equity groups for opportunities in the space.

Q1-2017 Laboratory Services Update– Variability in reimbursement has been the story of the laboratory services space throughout much of the last year. This reimbursement unpredictability has pushed the majority of private equity investors to the sidelines as they cautiously await more clarity on the future of the industry.

Transaction Advisory – Balance Point Capital Partners, L.P. and 4C Capital have made an investment in IGeneX, Inc. IGeneX is a CLIA certified reference laboratory providing molecular and immunological testing services for Lyme and associated tick-borne diseases to private practice physicians, hospitals, and other clinical reference laboratories worldwide.

Conference: Attended – 2015 Executive War College, May 5-6 2015, New Orleans, Louisiana.

Transaction Advisory – Willow Laboratories announced today that it has been acquired by Ampersand Capital Partners. Willow is one of the country’s leading clinical and forensic toxicology laboratories providing urine, hair and saliva testing services to a wide range of healthcare providers including treatment centers, physician practices and other laboratories.

Transaction Advisory – Blue Sky Biotech, Inc. has completed a recapitalization with Boston-based private equity firm Ampersand Ventures. Blue Sky Biotech, based in Massachusetts, is a Contract Research Organization (CRO).

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