INTEROFFICE MEMORANDUM
TO: WANDA LANDS
FROM: JOE MACK
DATE: OCTOBER 22, 2003
SUBJECT: 2003 OPERATING PLAN

This memo is being written in regards to the 2003 operating plan for Bellaire Clinical, Inc., the media campaign for 2003, and the future of Bellaire. The purpose of this memo is to highlight key factors regarding the operating plan in order to prepare for the next operating year. Competition has started to increase in the clinical laboratory testing industry, causing some uncertainties in the upcoming year. The new marketing plan looks to promote Bellaire’s accuracy, responsiveness, and flexibility in hopes to bring in new specialty contracts to improve Bellaire’s performance. Numerous hours have been spent developing the current draft of the operating plan, which is attached.
Clinical Laboratory Testing Industry
According to the Securities and Exchange Commission, in 2002, total revenue in the United States for the clinical laboratory testing industry totaled over $32 billion. The primary customers for laboratory tests are hospitals, physicians, and large corporations. The payments for the tests can be obtained by one of several parties; the hospital or physician, the patient, or some other party making a payment on behalf of the patient, like insurance. U.S. Congress imposes a cap on payments of tests provided to Medicare beneficiaries, which has caused labs to have limited ability to influence the price paid for these testing services.
Bellaire Clinical Labs, Inc.
Bellaire Labs provides both routine and specialty tests. Routine tests are simple blood tests that patients receive as part of physical examinations and are highly automated, requiring low-skilled personnel. Specialty tests are for more complicated medical problems. These tests require high skilled and labor demanding technologists to manage, conduct analyses, and summarize the