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.
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.
Q4-2016 Laboratory Services Update– A national increase in chronic and debilitating health conditions such as cancer and diabetes continues to fuel demand for clinical laboratory services from patients. The increase in chronic ailments is most prevalent among geriatric patients, a demographic that is expected to expand 20% over the next decade.
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.
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.