Specialty Laboratories to Cut 10% of Work Force
Specialty Laboratories Inc., which conducts medical tests for laboratories and hospitals, said it is cutting 10% of its 800-member work force to reduce costs.
Santa Monica-based Specialty Labs said it will have significant expenses in the second quarter related to the reduction.
In April, Specialty Laboratories said the government threatened to suspend Medicare and Medicaid payments and revoke the company’s license, alleging that laboratory-test services had been performed by unlicensed staff.
The company appealed the government’s ruling.
Specialty Laboratories shares fell 2 cents to $7.70 on the NYSE. The company made the announcement after the close of U.S. markets.
The shares have fallen 75% in the last year.
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