In order to compete against LabCorp and Quest Diagnostics, Theranos needs to offer a full range of lab tests. If they are still scaling up then it might make sense to outsource some tests even if they lose money doing it in order to build market share and test out their processes. And then they can gradually start doing more and more of those tests in house in order to bring costs down. (But I have no idea what&#x27;s going on in Theranos or if they have legitimate reasons.)