The fast-growing Bio-Reference Laboratories is continuing to consolidate its foothold in the Greater New York area by striking a development pact with one of the largest oncology medical groups in the region—a deal it says it wants to replicate elsewhere. Bio-Reference subsidiary GenPath Oncology entered into a development agreement earlier this month with Regional Cancer Care Associates, a Newark, N.J.-based practice with 92 physicians and 230,000 oncology patients across New Jersey. The two entities developed and opened a molecular lab on the grounds of John Theurer Cancer Center at Hackensack Regional Medical Center on June 3. The lab can perform up to 3,000 flow tests annually. Regional Cancer Care capitalized its construction, which cost about $750,000. Additionally, the parties will develop a physician-owned immunophenotyping service for hematological malignancies. No timetable was available for when that service will commence or its projected volumes. GenPath will also perform a variety of esoteric tests for Regional Cancer Care, including OnkoMatch and GenArray, according to Bio-Reference spokesperson Karen Maurer. The deal consolidates lab services for Regional Cancer Care, which previously sent its testing to a variety of labs in the area, according to Bryan Soltes, the group’s vice president for marketing and business development. […]
The fast-growing Bio-Reference Laboratories is continuing to consolidate its foothold in the Greater New York area by striking a development pact with one of the largest oncology medical groups in the region—a deal it says it wants to replicate elsewhere.
Bio-Reference subsidiary GenPath Oncology entered into a development agreement earlier this month with Regional Cancer Care Associates, a Newark, N.J.-based practice with 92 physicians and 230,000 oncology patients across New Jersey.
The two entities developed and opened a molecular lab on the grounds of John Theurer Cancer Center at Hackensack Regional Medical Center on June 3. The lab can perform up to 3,000 flow tests annually. Regional Cancer Care capitalized its construction, which cost about $750,000.
Additionally, the parties will develop a physician-owned immunophenotyping service for hematological malignancies. No timetable was available for when that service will commence or its projected volumes. GenPath will also perform a variety of esoteric tests for Regional Cancer Care, including OnkoMatch and GenArray, according to Bio-Reference spokesperson Karen Maurer.
The deal consolidates lab services for Regional Cancer Care, which previously sent its testing to a variety of labs in the area, according to Bryan Soltes, the group’s vice president for marketing and business development. “Through this relationship, Regional Cancer is well positioned to offer the most innovative cancer diagnostics,” said Edward J. Licitra, M.D., the medical group’s chairman of the board.
Bio-Reference Chief Executive Officer Marc D. Grodman, M.D., suggested that such semiexclusive pacts are a reflection of the current health care business environment. “We recognize that providers are forming larger practices to meet the challenges of a changing market,” Grodman said.
Meanwhile, the Elmwood Park, N.J.-based Regional Diagnostic is continuing to grow rapidly. For the second quarter of fiscal 2013, ending April 30, the company reported revenue of $176.5 million, up 17 percent from the year-ago quarter’s revenue of $151.4 million. Net income was $11.3 million, up 22 percent from $9.3 million during the fiscal second quarter of 2012.
According to company officials, the lab is seeking similar deals in other parts of the country.
