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Stanford University Hospital and Clinics has won a major contract that will greatly expand its diagnostic services.
Santa Clara County Individual Practice Association, with a network of 900 physicians and about 112,000 members in Silicon Valley, awarded Stanford the contract Sept. 29 in competitive bidding against Unilab.
The dollar value of the deal was not released, but "we'll get over a million dollars in savings each year by renegotiating this contract," says Dr. Larry Bonham, president of Santa Clara County IPA. "Unilab had doubled their rates over the last three years."
Dr. Bonham says Unilab once was a low
cost provider for diagnostic testing, but was no longer competitive with hospitals. He says this has opened a door for hospitals to gain some business in lab services.
Unilab is owned by Teterboro, N.J.-based Quest Diagnostics, the nation's...