A new clinical laboratory services company serving the San Fernando Valley and neighboring communities is being created by Providence Health & Services, California, and Pathology Associates Medical Laboratories (PAML,) LLC. The new California Laboratory Associates (CLA), LLC, is planned to begin business early next year.
CLA will perform laboratory work for medical practices and hospitals utilizing the newly remodeled state-of-the-art laboratory at Providence St. Joseph Medical Center and PAML’s full-service laboratory in Washington where more specialized testing will be conducted. The partnership will increase the level of laboratory services available to physicians in the San Fernando Valley and neighboring communities, enhancing patient care.
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“This agreement offers us a strategic opportunity to expand our outreach laboratory business and to create the premier hospital-based outreach laboratory program in the Greater Valley Area. PAML is recognized nationwide as a leader in partnering with community hospitals to expand their clinical laboratory outreach programs.” said Barry Wolfman, chief executive, Providence Saint Joseph, one of three Providence medical centers in the Valley.
The nonprofit Providence and for-profit PAML have operated similar joint ventures in Washington, Idaho and Utah. Providence owns a majority share of PAML, a company that has been successful in growing markets similar to those served by Providence in the Valley and neighboring communities.
Providence St. Joseph has operated a hospital-based laboratory outreach program since 1983. The new partnership will allow for expanding and increasing sales of laboratory services, reducing testing costs and expanding the tests offered while providing an efficient billing program.
PAML, one of the top 10 medical reference laboratories in the country and a national leader in laboratory outreach programs, brings to the partnership its own clinical laboratory as well as a sophisticated IT infrastructure, technology, support services and resources necessary to grow the venture.
“PAML is pleased to partner with Providence in California to assist our colleagues in growing their laboratory outreach program. The partnership affords both PAML and its sister facilities in California the opportunity to leverage our combined laboratory expertise and best practices, to gain significant economies of scale and new efficiencies across the business line. PAML’s turn-key laboratory outreach program and physician connectivity services will enhance the quality of services we provide to physicians in the Southern California region.” said Dr. Tom Tiffany, PAML’s chief executive officer.
Approximately 90 percent of the testing completed by CLA will be performed in California. This maintains jobs and the provision of healthcare services within the state.