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Medical & Diagnostic Laboratories
First Research, April 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The commercial medical and diagnostic laboratory industry in the US consists of about 8,000 companies with combined annual revenue of about $45 billion. Major companies include Quest Diagnostics and Laboratory Corporation of America (LabCorp) in the medical lab segment, and Alliance HealthCare Services and RadNet in the imaging segment. The industry is fragmented: the 50 largest medical lab companies generate about 40 percent of segment revenue, and the 50 largest diagnostic imaging companies account for about 30 percent of segment revenue. Medical labs account for about two-thirds of industry revenue; imaging centers account for one-third.
COMPETITIVE LANDSCAPE
Demand is linked to the number of people receiving medical treatment. The profitability of individual companies depends on efficient operations and good marketing. There are large economies of scale in the operation of medical labs, which can receive samples from a wide geographical area. Small medical labs can compete effectively by providing specialized analyses, or by serving geographical regions with few medical facilities. Imaging centers don't have similar economies of scale because they must be located close to patients, so small firms can compete effectively with large ones in a particular area.
PRODUCTS, OPERATIONS & TECHNOLOGY
Medical labs (often called 'clinical labs') receive specimens of body fluids (most often blood) or tissues collected from patients, and perform a wide variety of tests to determine the presence and amount of various biochemicals to help doctors diagnose and treat medical conditions. The tests performed...
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