UCSF does not operate at the scale LabCorp and Quest do and hence cannot benefit from economies of scale. Also, Theranos might not have the option to outsource

UCSF does not operate at the scale LabCorp and Quest do and hence cannot benefit from economies of scale. Also, Theranos might not have the option to outsource to one of the big two, and hence operates with the smaller entity, which charges them a "special" fee, given the "special" situation. In other words: it is a price dictated by business decisions and not based on economics. PS: The WSJ article is more of an effort by Walgreens to do damage control and try to distance themselves from Theranos. Most likely their brand took a hit from this association. (also, it looks like Walgreens loaned Theranos $50mil for this deal)