Rise in expenses, drop in volume leads to Ellsworth lab closure
The chief operating officer of NorDx Laboratories says that a rise in expenses and a drop in customer numbers will mean the closure of an Ellsworth blood-draw site on June 4.
Michael Blanchard, COO of the Scarborough-based nonprofit, told the Ellsworth American that the drop in customer volume at the independent lab stems from the decision by doctors employed at the nearby Maine Coast Memorial Hospital to perform lab work onsite at the hospital.
“For hospitals to survive,” Blanchard told the American, “they need to do that … it’s a fact of life.”
The competitive pricing that usually provided NorDx with an edge over Maine Coast is also waning. Blanchard told the American that the hospital has cut costs and offers larger discounts to insurers, and that further cost-cutting measures are likely from Maine Coast Memorial.
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