Physicians Choice Laboratory Services of Rock Hill is laying off 120 workers, company officials announced Thursday.
Reduced reimbursements from federal and private payers for the lab’s most commonly used tests is the reason for the layoffs, said Christine Marks, vice president for marketing.
“This was a difficult but necessary decision,” Marks said.
Specific reimbursement cuts are part of The Protecting Access to Medicare Act, which was passed in April 2014, Physicians Choice officials said.
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Changes in the act affected clinical laboratories such as Physicians Choice. Lab officials said the reimbursement cuts are part of a larger industry trend that challenges all providers to health care industry to balance revenues and expenses with the goal of better services and lower costs.
Physicians Choice Laboratory Service moved into a 104,000-square-foot, $24.1 million building in the Riverwalk Business Park in July 2013. The company, which moved from Charlotte where it was out of space, had about 200 employees in 2013 and had planned to expand to about 300 workers within a year.
It was the first business in the Riverwalk Business Park.
Physicians Choice offers a range of services designed to inform physicians about their patients’ health. Tests ranging from toxicology reports to drug screenings to genetic and DNA studies are performed at the Riverwalk lab. Patient samples come from all over the country.
The lab recently added blood tests to help physicians address concerns of over-diagnosis and over-treatment of prostate cancer.
Don Worthington • 803-329-4066