Top executives at Danaher Corp., which owns Brea-based medical-laboratory instruments maker Beckman Coulter Inc., cited progress in integrating Beckman and executing a turnaround.
Danaher—a Washington, D.C.-based conglomerate perhaps best known as the maker of Craftsman tools sold at Sears—paid $6.8 billion last year to acquire Beckman, which was having quality-control problems.
Danaher Chief Executive H. Lawrence Culp said Danaher’s 25% revenue jump to $4.6 billion was influenced by deals, primarily the addition of Beckman Coulter.
“We’ve been exceptionally pleased with the first-year progress as [Danaher Business Systems] continues making an impact on many facets of the business, including quality, while setting the stage for future growth and improving the cost structure,” Culp said on a recent earnings call.
He noted Beckman Coulter recently received Food and Drug Administration premarket approval for its Class III Prostate Health Index non-invasive blood test.
Class III Prostate Health Index “is 2.5 (times) more specific in detecting prostate cancer and TSA alone in patients,” Culp said. “The accuracy of the test also benefits patients by reducing the number of unnecessary prostate biopsies.”
The chief executive told analyst Charles Stephen Tusa of JPMorgan Chase & Co. there was “no silver bullet there” in Danaher’s approach to boosting Beckman’s performance.
Improving service levels and quality, coupled with new products and sales and marketing investments have company officials “encouraged that this is a business that once fully up on its feet will be a real contributor to Danaher’s overall core growth,” Culp said.
Self-Insurance
A study from the Center for Studying Health System Change suggests smaller businesses’ growing interest in assuming financial risk for their workers’ medical care through self-insurance could pose challenges for policymakers.
Self-insurance occurs when a company sets aside a predefined amount to pay for its employees’ medical care.
Those companies buy “stop-loss” insurance to cover medical costs that exceed that amount.
Orange County is one of 12 communities examined by the Washington, D.C.-based nonprofit.
Increasingly competitive markets for stop-loss insurance and third-party administrator services are making self-insurance attractive to a wider range of employers—including those with 100 or fewer workers, the study found.
It noted that some insurance carriers now offer stop-loss coverage to businesses with as few as 10 employees.
The study did say that if more small businesses opt to go the self-insurance route, some goals of federal healthcare reform could be undermined. Researchers said one particular concern to policy makers is adverse selection—attracting sicker-than-average people—in state-based health insurance exchanges created by reform and scheduled for implementation in 2014.
“Rising premiums, new regulations on fully insured products and more competitive markets for stop-loss coverage all appear to be contributing to small firms’ growing interest in self-insured health benefits,” said Tracy Yee, the study’s co-author.
The center said that it conducted 174 interviews with health plans, benefits consultants and other private-sector market experts.
Board Shuffle
Saddleback Memorial Medical Center in Laguna Hills said it appointed several new board members and elevated an existing member to chair.
Patrick Donahue, a certified public accountant, is the board’s new chair. Donahue’s served on the board since 2009.
He replaces Bruce Channing, who is the city manager for the city of Laguna Hills, as chairman. Channing will continue to serve as a member of the Saddleback board.
Richard Wasley, South Coast Radiological Medical Group radiology medical director, was named to replace John Schuetz, an internal medicine specialist, on the board’s finance committee. Jaci Songstad is the board’s new secretary. Songstad has served on the hospital’s board since 2009.
Bits and Pieces
Insight Imaging Inc. in Lake Forest signed a mobile imaging contract with South Nassau Communities Hospital in Oceanside, N.Y. Insight will provide positron emission tomography and computed tomography screening. … San Francisco-based investment bank Vista Partners said it initiated coverage of Auxilio Inc. in Mission Viejo. Auxilio helps hospitals and healthcare providers reduce their dependence on paper records. Vista Partners analyst Ross Silver said in a note that Auxilio valued the market potential for its services at up to $22 billion, based on having about 5,795 hospitals in the U.S.
