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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: deeno who wrote (53284)	1/31/2014 1:01:41 PM
From: rllee	Read Replies (1) \| Respond to of 78480

Medical testing labs appear to be not a good business. My medical hospital group originally had an in-house lab test facility chain to complement its hospital and medical doctor group practices but sold it to LapCorp. Apparently they did not think it makes money for them to hold on to it. Medicare pays them a low rate for tests performed by medicare patients.

To: deeno who wrote (53284)	1/31/2014 1:51:18 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78480

lab testers: Pass on DGX. Read something negative about their business practices. LH--Began buying small in Nov. Averaging down as stock falls. Most recent add yesterday. In total, a very small token amount. With Affordable/Obama care, more people will get tests. Otoh, many patients will be charged (out of pocket), so patients may not so easily opt for many tests. Plus Medicad/Medicare payments may go lower. So difficult to be certain to what extent LH/others will benefit, if at all. As stated in previous LH discussion here, some indication that big hospital chains are preferring to do their testing in-house, bypassing companies like LH. Or if testing isn't profitable for them, maybe the healthcare firms are outsourcing, as stated in previous post. Note all the new tests/business LH seems to be contracting for: finance.yahoo.com For me, I hope reversion-to-mean for the stock. Risk being, government/ business model has shifted to permanently impair prospects for LH other testing co's.