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WILLIAM N. BLALOCK, P.S.C. H L watson
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AUG 4 )975
J. X. BARR
July 25, 197S
WILLIAM H. BLALOCK, M.O.
PHONE 4414J* - 3SZS MOAOWAY PAOUCAH, KENTUCKY 43Q01 PKACTICC UMITIO TO OA*T1IOe<TEftOlOGY ano tNooscorr
Ojfiet Hourt By Appointmtnt Only
Howard L. Watson, -4dm. Mgr., Manufacturing
Chemicals Group 5 Executive Mall Bldg. 656 E. Svedesford, Road Wayne, Pa. 19087
Dear Howard:
I am summarizing my own thoughts regarding the proposal to
utilize the Abbott Reference Laboratories for our testing
programs. I would of course defer to the judgement of Dr. Kuschner and a copy of my letter is being sent to him.
First, our current costs for the standard SM-12-60 and various
laboratory tests commonly used are as follows for the Calvert
Ciry operation:
A. SM-12-60 which includes Ca, Phos, xx C02, uric acid,
cholesterol, Total Protein, Albumin, Total Bilirubin,
L.D.II. , Aik. Phos. & SCOT is--------------------------------- S16.00
SGPTfnot on SM-12-60)---------------------f------------------------- 9.00
GGTPCnot on SM-12-60-------------------- +----------------------- 9.00
L.A.P.-------------------------------
i-------- 9.00
Platelet test---------------------------------- j-------------------------- 5.00
Total per person
&46.00
B. For these charges, we get the services and
on the spot advice of a Board Certified
Specialist in Clinical Pathology in solving
problems which arise and supervising quality
control, etc. This has proved invaluable to me.
He will help set up new tests, look up literature,
etc. and all tests can be done on one blood specimen.
Second, consider what other costs would be incurred if switch is made to the Abbott Laboratory which does not cover all the tests which we agreed on in Allentown and a1] 1 of the data processLng is based on currently.
A. A centrifuge would have to be purchased and space made available near or in the plant dispensary for its use. These costs varying amounts according to how elaborate equipment we would wan t. It would be at
least 51,000.00 or more.
P00025994
WILLIAM N. BLALOCK, P.S.C.
WII4IAM N. BLALOCK. M.D. RHONI! 443-62* - as BROADWAY RADUCAM. KENTUCKY 42001 ' *'RTAAiCTice uurrto to gastroenterology AND (NCOSCORY
Office Hour* By Appointment Only
B. Extra labor would be incurred, probab ly a laboratory technician, to draw the blood, centr:i-uge the blood and other costs would be incurred su ch as deep freeze equipment, labor to package the matejrial for shipment to Abbott, etc.. Current salaries fo: laboratory technicians vary but here would be at least SlOjOOO.OO per year.
C. Such a laboratory would erquire supe^vision by myself and would require more of my time at additional cost.
Therefore, if one considers at first the savings which seem to be present, I do not think that the per employe? cost would be much greater with our present method than with the seemingly cheaper system. The advantages of the present metho d of easy accessability of data to myself, and free exchange of information between myself and Dr. C.B. Jones, our patlioloigst, wouLd not be present with the Abbott laboratory. These same factors would apply it would seem to Dr. Beidleman. Advantages that w ould be present in addition to the cost factor would be better accessability to the employee for testing purposes.and standardi zation of laboratory data.
I think that I have outlined to you my own reas oned analysis as you requested. I would be interested in what t he final decision is in this matter since it obviously will take more of my time if it is utilized.
WB/lw cc/Marvin Kuschner
B. Beidleman Tom Herbig
Sincerely yqjirsj
.y'U
ck, M.D.
AP00025995