At issue is the way that Medicare reimburses everyone from the big laboratory companies such as the Laboratory Corp of America (LH:NYSE) and Quest Diagnostics Inc. (DGX:NYSE), to the molecular diagnostic labs inside academic hospitals, and especially smaller firms that make proprietary tests used by doctors to more effectively target treatments to patients with conditions like cancer.

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The Piccolo takes 12.5 minutes to complete a reading, and delivers results (so says Abaxis) just as accurate as those done at labs run by giants Quest Diagnostics (nyse: DGX - news - people ) and Laboratory Corp. of America.

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Dr. Pai said he and the Clinton group canvassed the Indian laboratory industry, convincing 27 of the 400 laboratories in the country to agree to a price ceiling on the diagnostics they purchased at the steep discount.

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