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To Consolidate or Network: For Laboratories, That's the Question

Executive Summary

Consolidation lowers operating expenses, a factor crucial in remaining competitive. But it cannot directly offset the losses that stem from the ongoing decline in the volume of inpatient testing as more health care services move to the ambulatory clinic arena. Networking, in contrast, allows laboratories to exploit the fixed cost aspects of their business by increasing volume, but it cannot bring down operating expenses enough to make members competitive with highly efficient independent reference la

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