UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
APRIL 19, 1999
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(Date of earliest event reported)
LABORATORY CORPORATION OF AMERICA HOLDINGS
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(Exact name of registrant as specified in its charter)
DELAWARE 1-11353 13-3757370
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) Number)
358 SOUTH MAIN STREET, BURLINGTON, NORTH CAROLINA 27215
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(Address of principal executive offices)
336-229-1127
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(Registrant's telephone number, including area code)
ITEM 5. OTHER EVENTS
On April 19, 1999, the Company and PCS Health Systems, which
is the nation's largest pharmaceutical care management
company, announced that they jointly will provide laboratory
benefits to the approximately 1 million members of the Mail
Handlers Benefit Plan.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL
INFORMATION AND EXHIBITS
(c) Exhibit
20 Press release of the Company dated
April 19, 1999.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange
Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly
authorized.
LABORATORY CORPORATION OF AMERICA HOLDINGS
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(Registrant)
By:/s/:BRADFORD T. SMITH
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Bradford T. Smith
Executive Vice President,
General Counsel, Secretary
and Compliance Officer
Date: May 7, 1999
Laboratory Corporation of America- PCS Health Systems, Inc.
Registered Trademark- Holdings 9501 East Shea Blvd.
358 South Main Street Scottsdale, AZ 85260
Burlington, NC 27215
Contact: 336-584-5171 Contact: Blair Jackson, 602-391-4138
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Media - Cynthia Jay, ext. 5052 www.pcshs.com
Investors - Pamela Sherry, ext. 4855
Shareholder Direct - 800-LAB-0401 FOR IMMEDIATE RELEASE
www.labcorp.com ---------------------
MAIL HANDLERS BENEFIT PLAN SELECTS PCS HEALTH SYSTEMS AND LABCORP-
REGISTERED TRADEMARK-TO MANAGE LAB BENEFITS FOR 1 MILLION MEMBERS
SCOTTSDALE, Ariz. and BURLINGTON, N.C., April 19, 1999 - PCS
Health Systems, the nation's largest pharmaceutical care
management company, and Laboratory Corporation of America-
Registered Trademark- Holdings (LabCorp-Registered Trademark-)
[NYSE: LH], one of the largest national clinical laboratory
companies in the United States, announced today that they jointly
will provide laboratory benefits to the approximately 1 million
members of the Mail Handlers Benefit Plan.
The Mail Handlers Benefit Plan is offered under the auspices
of the Federal Employees Health Benefits Program to federal and
postal employees and retirees of the Federal Government. PCS
currently provides prescription claims administration services to
the Mail Handlers Benefit Plan, and will add integrated laboratory
benefits to the program.
The agreement provides enrollees of the Mail Handlers
Benefit Plan and their covered family members with the additional
benefit of non-emergency outpatient laboratory services for no
out-of-pocket costs, no co-insurance and no deductible through
PCS' PERFORMANCE LAB program, a cooperative venture between PCS
and LabCorp.
"With lab tests representing nearly 5 percent of total
medical costs, PERFORMANCE LAB gives health plans the opportunity
to offer a cost-effective service while improving and simplifying
members' care," said Jean-Pierre Millon, president and chief
executive officer of PCS. "The scope of LabCorp's operations
ensures that patients across the country will be able to benefit
from this unique program."
- more -
Mail Handlers Selects PCS and LabCorp
page 2
LabCorp delivers test results on 240,000 patients daily
through more than 900 patient service facilities serving clients
in 50 states.
"The concept behind PERFORMANCE LAB is an innovation that is
much in tune with the needs of today's health care marketplace,"
said Thomas P. Mac Mahon, LabCorp's president and chief executive
officer. "Through it, covered members can be assured of high-
quality clinical tests without the burden of managing co-
payments, co-insurance or deductibles. At the same time,
employers can be confident that they are getting maximum value
for their health care spending."
To receive the laboratory benefit through PCS and LabCorp,
members tell their physicians that they would like laboratory
tests to be performed at a LabCorp facility. The patient then
presents his or her PCS card _ which provides both PERFORMANCE LAB
and prescription benefits. When LabCorp collects the specimen and
performs the laboratory tests, the patient's claim is processed
automatically with no out-of-pocket payment.
"We're confident that the combined pharmacy/laboratory
benefit will be of great value to our members in addition to
helping reduce costs," said Jerome J. Palermino, Executive
Director of the Mail Handlers Benefit Plan. "We see it as a
cutting-edge way to simplify health care delivery and improve
quality."
The Mail Handlers Benefit Plan ranks as one of the top fee-
for-service plans offered in the Federal Employees Health
Benefits Program as a result of its excellent customer service
and comprehensive benefits. Its superior satisfaction scores have
helped it become the second largest plan for Federal and postal
employees nationwide. The new PERFORMANCE LAB program is an
example of how the Plan continues to offer its members innovative
benefits while at the same time saving them money and eliminating
paperwork.
Using its superior information resources, advanced
technology and clinical expertise, PCS Health Systems, Inc.
(http://www.pcshs.com) provides managed pharmaceutical-related
programs and services that can directly and positively improve
the health of patients, and help reduce health care costs. PCS is
a subsidiary of Rite Aid Corporation [NYSE, PSE: RAD].
- more -
Mail Handlers Selects PCS and LabCorp
page 3
Laboratory Corporation of America-Registered Trademark-
Holdings (http://www.labcorp.com) is a national clinical
laboratory with annual revenues of $1.6 billion in 1998. With
18,000 employees and over 100,000 clients nationwide, the company
offers more than 2,000 clinical tests, ranging from simple blood
analyses to more sophisticated technologies. Included in
LabCorp's network of 25 major laboratories are three Centers of
Excellence. The Center for Molecular Biology and Pathology, in
Research Triangle Park (RTP), North Carolina, develops
applications for polymerase chain reaction (PCR) technology. Its
Center for Occupational Testing in RTP is the world's largest
substance abuse testing facility, and the Center for Esoteric
Testing in Burlington, North Carolina, performs the largest
volume of rare analyses in the network. LabCorp's clients
include physicians, state and federal governments, managed care
organizations, hospitals, clinics, pharmaceutical and many
Fortune 1000 companies, and other clinical laboratories.
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