UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C.  20549

                                  FORM 10-Q







        QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                   SECURITIES EXCHANGE ACT OF 1934

               For quarterly period ended   September 30, 1998
                                            ------------------




                      Commission file number 0-15975
                                             -------


                                LabOne, Inc.
                                ------------
                           10310 West 84th Terrace
                             Lenexa, Kansas 66214


                               (913) 888-1770


                           Incorporated in Delaware
             I.R.S. Employer Identification Number:  48-0952323






    Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.     Yes /X/     No / /

Number of shares outstanding of the only class of Registrant's common
stock, $.01 par value, as of November 1, 1998 - 13,311,450 shares net of 
1,688,550 shares held as treasury stock.






                                  Page 1 of 221
<TABLE>                 PART I.  FINANCIAL INFORMATION
ITEM 1 - Financial Statements
                               LabOne, Inc. and Subsidiary
                               Consolidated Balance Sheets
<S>                                                            <C>            <C>
                                                                September 30,     December 31,
                                                                    1998             1997
ASSETS                                                         ------------      ------------
Current assets:
   Cash and cash equivalents                                     $21,175,673      18,284,672
   Short-term investments                                            500,209       1,204,638
   Accounts receivable-trade, net of allowance for doubtful
     accounts of $1,886,098 in 1998 and $968,295 in 1997          17,596,220      12,604,687
   Income taxes receivable                                           752,365         508,704
   Inventories                                                     1,537,379       2,203,471
   Real estate available for sale                                  3,515,000       3,515,000
   Prepaid expenses and other current assets                       2,603,491       2,279,619
   Deferred income taxes                                           3,775,732       3,299,387
                                                                  ----------      ----------
      Total current assets                                        51,456,069      43,900,178
Property, plant and equipment                                     58,778,165      43,956,571
   Less accumulated depreciation                                  34,762,000      33,515,280
                                                                  ----------      ----------
      Net property, plant and equipment                           24,016,165      10,441,291
Other assets:
   Intangible assets, net of accumulated amortization              4,804,124       5,229,708
   Deferred income taxes - noncurrent                                252,505         321,799
   Deposits and other assets                                          53,869          80,497
                                                                  ----------      ----------
      Total assets                                               $80,582,732      59,973,473
                                                                  ==========      ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Accounts payable                                              $ 4,258,495       3,326,451
   Bonds payable - current                                         1,850,000             -
   Deferred income taxes payable                                      21,033             -
   Accrued payroll and benefits                                    4,144,319       4,530,235
   Other accrued expenses                                            614,804         423,396
   Other current liabilities                                         240,086         194,148
                                                                  ----------      ----------
      Total current liabilities                                   11,128,737       8,474,230
   Bonds payable - noncurrent                                     18,050,758             -
   Deferred income taxes - noncurrent                                331,176             -
                                                                  ----------      ----------
      Total liabilities                                           29,510,671       8,474,230
Stockholders' equity:
   Preferred stock, $.01 par value per share;
     1,000,000 shares authorized, none issued                            -               -
   Common stock, $.01 par value per share; 40,000,000 shares
     authorized, 15,000,000 shares issued                            150,000         150,000
   Additional paid-in capital                                     13,829,993      13,723,250
   Equity adjustment from foreign currency translation              (883,707)       (666,927)
   Retained earnings                                              59,907,841      60,259,272
                                                                  ----------      ----------
                                                                  73,004,127      73,465,595
   Less treasury stock of 1,857,435 shares in
     1998 and 1,874,706 shares in 1997                            21,932,066      21,966,352
                                                                  ----------      ----------
      Total stockholders' equity                                  51,072,061      51,499,243
                                                                  ----------      ----------
      Total liabilities and stockholders' equity                 $80,582,732      59,973,473
                                                                  ==========      ==========
See accompanying notes to consolidated financial statements and management's
discussion and analysis of financial condition and results of operations.
                                   Page 2

</TABLE>
<TABLE>
                                        LabOne, Inc. and Subsidiary
                                    Consolidated Statements of Earnings

<S>                                              <C>              <C>             <C>            <C>
                                              Three months ended September 30,  Nine Months Ended September 30,
                                                      1998           1997             1998           1997   
                                                    ----------     ----------      ----------     ----------

Sales                                             $ 25,834,181     19,728,262      74,929,877     57,775,736

Cost of sales                                       14,529,055     10,664,417      41,319,906     30,750,771
                                                    ----------     ----------      ----------     ----------
     Gross profit                                   11,305,126      9,063,845      33,609,971     27,024,965

Selling, general and administrative expenses         7,806,049      6,742,060      22,981,153     20,160,880
                                                    ----------     ----------      ----------     ----------
     Earnings from operations                        3,499,077      2,321,785      10,628,818      6,864,085

Other income                                           131,390        281,017         532,186        878,919
                                                    ----------     ----------      ----------     ----------
     Earnings before income taxes                    3,630,467      2,602,802      11,161,004      7,743,004

Income tax expense                                   1,403,763      1,066,682       4,417,930      3,160,902
                                                    ----------     ----------      ----------     ----------
     Net earnings                                  $ 2,226,704      1,536,120       6,743,074      4,582,102
                                                    ==========     ==========      ==========     ==========



Basic and diluted earnings per common share           $ 0.17           0.12            $ 0.51           0.34
                                                       ======         ======            =====          =====

Dividends per common share                            $ 0.18           0.18            $ 0.54           0.54
                                                       ======         ======            =====          =====

Basic weighted average common shares outstanding    13,142,447     13,113,808      13,138,125     13,100,304
                                                    ==========     ==========      ==========     ==========

Diluted weighted average common shares outstanding  13,236,865     13,321,213      13,292,928     13,325,123
                                                    ==========     ==========      ==========     ==========


</TABLE>












See accompanying notes to consolidated financial statements and management's
discussion and analysis of financial condition and results of operations.
                                 Page 3




                         LabOne, Inc. and Subsidiary
                Consolidated Statement of Stockholders' Equity
                      Nine Months Ended September 30, 1998

<TABLE>
<CAPTION>
                                              Accumulated
                                  Additional     other                                    Total
                         Common     paid-in  comprehensive  Retained     Treasury     stockholders'   Comprehensive
                         stock      capital      income     earnings       stock         equity          income
<S>                   <C>        <C>          <C>         <C>          <C>         <C>               <C> 
Balance at
  December 31, 1997    $150,000   13,723,250   (666,927)   60,259,272   (21,966,352)    51,499,243
Comprehensive income:
  Net earnings                                              6,743,074                    6,743,074        6,743,074
  Equity adjustment 
   from foreign 
   currency translation                        (216,780)                                  (216,780)        (216,780)
                                                                                                          ---------
Comprehensive income                                                                                      6,526,294
                                                                                                          =========
Cash dividends
   ($0.54 per share)                                       (7,094,505)                  (7,094,505)
Stock options
   exercised, net
   (13,379 shares)                    81,932                                 (9,499)        72,433
Directors' stock issued
   (3,892 shares)                     24,811                                 43,785         68,596
                       --------   ----------   --------    ----------   -----------     ----------
Balance at
   Sept. 30, 1998      $150,000   13,829,993   (883,707)   59,907,841   (21,932,066)    51,072,061
                       ========   ==========   ========    ==========   ===========     ==========

</TABLE>


















See accompanying notes to consolidated financial statements and management's
discussion and analysis of financial condition and results of operations.


                                    Page 4

                         LabOne, Inc. and Subsidiary
                    Consolidated Statements of Cash Flows
                                               Nine months ended September 30,
                                                        1998         1997
                                                     ---------     ---------
Cash provided by (used for) operations:
   Net earnings                                    $ 6,743,074     4,582,102
   Adjustments to reconcile net earnings
       to net cash provided by operations:
     Depreciation and amortization                   3,072,638     3,306,525
     Loss (gain) on disposal of property
          and equipment                                  6,009      (118,771)
     Directors' stock compensation                      68,597        69,584
     Provision for deferred taxes                      (69,258)     (204,568)
   Changes in:
     Accounts receivable                            (4,991,533)   (3,631,691)
     Income taxes                                     (243,661)       20,522
     Inventories                                       666,092      (820,808)
     Prepaid expenses and other current assets        (323,872)      212,172
     Accounts payable                                  932,044        58,768
     Accrued payroll & benefits                       (385,916)      959,370
     Accrued expenses                                  191,408       258,960
     Other current liabilities                          45,938        13,644
                                                    ----------    ----------
        Net cash provided by operations              5,711,561     4,705,809
                                                    ----------    ----------
Cash provided by (used for) investment transactions:
   Purchases of investments held to maturity        (5,461,090)  (15,893,902)
   Proceeds from maturities of investments held
      to maturity                                    6,201,894    13,485,062
   Property, plant and equipment, net              (16,100,453)   (3,242,256)
   Acquisition of intangible assets, net              (167,173)   (4,128,275)
   Other                                                26,628       (58,634)
                                                    ----------    ----------
        Net cash used for investment transactions  (15,500,194)   (9,838,005)
                                                    ----------    ----------
Cash provided by (used for) financing transactions:
   Issuance of treasury stock, net of proceeds
     from the exercise of stock options                 72,435       256,807
   Proceeds  from issuance of bonds                 19,900,000           -
   Cash dividends                                   (7,094,506)   (7,074,887)
                                                    ----------    ----------
        Net cash provided by (used for)
          financing transactions                    12,877,929    (6,818,080)
                                                    ----------    ----------
Effect of foreign currency translation                (198,294)      (28,456)
                                                    ----------    ----------
        Net increase (decrease) in cash and
          cash equivalents                           2,891,001   (11,978,732)
Cash and cash equivalents - beginning of period     18,284,672    28,647,378
                                                    ----------    ----------
Cash and cash equivalents - end of period          $21,175,673    16,668,646
                                                    ==========    ==========
Supplemental disclosures of cash flow information:
   Cash paid during the period for:
      Interest                                     $   106,462           -
      Income Taxes                                 $ 4,711,053     3,541,775
                                                    ==========    ==========
See accompanying notes to consolidated financial statements and management's
discussion and analysis of financial condition and results of operations.
                                   Page 5

                         LabOne, Inc. and Subsidiary
                 Notes to Consolidated Financial Statements
                         September 30, 1998 and 1997

The accompanying consolidated financial statements include the accounts of 
LabOne, Inc. and its wholly- owned subsidiary Lab One Canada Inc. (a Canadian 
corporation).  All significant intercompany transactions have been eliminated 
in consolidation.

The financial information furnished herein as of September 30, 1998 and for 
the periods ended September 30, 1998 and 1997 is unaudited; however, in the 
opinion of management, it reflects all adjustments, consisting of normal 
recurring adjustments, which are necessary to fairly state the Company's 
financial position and the results of its operations and cash flows.  The 
balance sheet information as of December 31, 1997 has been derived from the 
audited financial statements as of that date.  The financial statements have 
been prepared in conformity with generally accepted accounting principles 
appropriate in the circumstances, and included in the financial statements are
certain amounts based on management's estimates and judgments.

The financial information herein is not necessarily representative of a full 
year's operations because levels of sales, capital additions and other factors
fluctuate throughout the year.  These same considerations apply to all year-
to-year comparisons.  See the Company's Annual Report on Form 10-K for the 
year ended December 31, 1997, for additional information not required by this 
report on Form 10-Q.

Forward Looking Statements
--------------------------
This Quarterly report on Form 10-Q may contain "forward-looking statements," 
including projections, statements of plans and objectives, statements of 
future economic performance and statements of assumptions underlying such 
statements.  Forward-looking statements involve known and unknown risks and 
uncertainties.  Many factors could cause actual results to differ materially 
from those that may be expressed or implied in such forward-looking 
statements, including, but not limited to, the volume and pricing of 
laboratory tests performed by the Company, competition, the extent of market 
acceptance of the Company's testing services in the healthcare and substance 
abuse testing industries, general economic conditions and other factors 
detailed from time to time in the Company's reports and registration 
statements filed with the Securities and Exchange Commission, including the 
Company's Current Report on Form 8-K dated October 22, 1998.

Business Segment Information
----------------------------
The company operates in three lines of business:  insurance risk appraisal 
testing, clinical diagnostic testing and substance abuse testing.  The 
following table presents selected financial information for each segment:










                                  Page 6
<TABLE>
<CAPTION>
                                           Three Months Ended              Nine Months Ended
                                              September 30,                   September 30,
                                             1998         1997             1998         1997
                                             ----         ----             ----         ----
<S>                                   <C>             <C>             <C>          <C>
Sales:
   Insurance                            $ 16,676,602    15,206,406      51,070,849   45,531,918
   Clinical                                5,045,806     1,803,678      13,422,977    5,465,056
   Substance abuse testing                 4,111,773     2,718,178      10,436,051    6,778,762
                                          ----------    ----------      ----------   ----------
Total sales                             $ 25,834,181    19,728,262      74,929,877   57,775,736
                                          ==========    ==========      ==========   ==========
Operating income (loss):
   Insurance                            $  4,840,576     4,637,451      15,626,247   13,683,324
   Clinical                               (1,431,106)   (2,161,954)     (4,875,551)  (6,161,014)
   Substance abuse testing                   128,409      (117,104)        (10,213)    (624,592)
   General corporate income (expense)        (38,802)      (36,608)       (111,665)     (33,633)
                                           ---------     ---------      ----------    ---------
Total earnings from operations             3,499,077     2,321,785      10,628,818    6,864,085
   Other income (expense)                    131,390       281,017         532,186      878,919
                                           ---------     ---------       ---------    ---------
Earnings before income taxes            $  3,630,467     2,602,802      11,161,004    7,743,004
                                           =========     =========       =========    =========
</TABLE>

The assets classified as corporate increased significantly due to bond
proceeds and construction of the new facility.  There were no material
changes in assets in the other segments, or in the basis of segmentation
or measurement of segment operating income or loss.

ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND 
RESULTS OF OPERATIONS.
----------------------
SELECTED FINANCIAL DATA
<TABLE>
                                      Three Months Ended                     Nine Months Ended
                                         September 30,                         September 30,
                                      1998          1997       % Increase      1998         1997      %Increase
                                   -----------   -----------   ----------   ----------   ----------   ---------
<S>                               <C>           <C>              <C>      <C>          <C>             <C>
   Sales                           $25,834,181    19,728,262        31%    $74,929,877   57,775,736       30%
   Net earnings                      2,226,704     1,536,120        45%      6,743,074    4,582,102       47%
   Earnings per common share           $0.17          0.12                     $0.51         0.34
   Cash dividends per common share     $0.18          0.18                     $0.54         0.54
</TABLE>

The Company provides high-quality laboratory testing services to insurance 
companies, physicians and employers.

LabOne provides risk-appraisal laboratory services to the insurance industry.
The tests performed by the Company are specifically designed to assist an 
insurance company in objectively evaluating the mortality and morbidity risks 
posed by policy applicants.  The majority of the testing is performed on 
specimens of individual life insurance policy applicants.  The Company also 
provides testing services on specimens of individuals applying for individual 
and group medical and disability policies.

                                 Page 7

LabOne's clinical testing services are provided to the healthcare industry to 
aid in the diagnosis and treatment of patients.  LabOne operates only one 
highly automated and centralized laboratory, which the Company believes has 
significant economic advantages over other conventional laboratory 
competitors.  LabOne markets its clinical testing services to the payers of 
healthcare--insurance companies and self-insured groups.  The Company does 
this through Lab Card(, a Laboratory Benefits Management (LBM) program.

The Lab Card Program provides laboratory testing at reduced rates as compared 
to traditional laboratories.  It uses a unique benefit design that shares the 
cost savings with the patient, creating an incentive for the patient to help 
direct laboratory work to LabOne.  Under the Program, the patient incurs no 
out-of-pocket expense when the Lab Card is used, and the insurance company or
self-insured group receives substantial savings on its laboratory charges.

Additionally, BlueCross BlueShield of Tennessee selected LabOne to provide
routine outpatient laboratory testing services for BlueCare members throughout
Tennessee effective February 1, 1998.  BlueCare is BlueCross BlueShield of 
Tennessee's plan for Tenncare participants and covers approximately 480,000
members.  The Company's LBM programs, including BlueCare and the Lab Card 
Program, have approximately 2.1 million lives enrolled.

LabOne is certified by the Substance Abuse and Mental Health Services 
Administration (SAMHSA) to perform substance abuse testing services for
federally regulated employers and is currently marketing these services 
throughout the country to both regulated and nonregulated employers.  The 
Company's rapid turnaround times and multiple testing options help clients
reduce downtime for affected employees and meet mandated drug screening 
guidelines.

THIRD QUARTER ANALYSIS

Net sales increased 31% to $25.8 million in the third quarter 1998 from $19.7 
million in the third quarter 1997 due to increases in all business segments.  
Insurance segment revenue increased to $16.7 million during the third quarter 
1998 as compared to $15.2 million in the same quarter last year.  The increase
was due to an increase in market share and an increase in oral fluid testing 
on applicants applying for smaller face-amount policies.  The total number of
insurance applicants tested in the third quarter 1998 increased by 10% as 
compared to the same quarter last year.  Average revenue per applicant 
decreased 3% during the same periods due to competitive pricing pressures.  
Insurance kit and container revenue increased, due primarily to an increase in
the number of blood and oral fluid kits sold.  

Clinical (diagnostic) laboratory revenue increased 180% from $1.8 million in 
the third quarter 1997 to $5.0 million in 1998 due to an 117% increase in 
testing volumes and a 29% increase in the average revenue per patient.  
Substance abuse testing (SAT) revenue increased 51% from $2.7 million in the 
third quarter 1997 to $4.1 million in 1998 primarily due to increased testing 
volumes.

Cost of sales increased $3.9 million in the third quarter 1998 as compared to 
the prior year, due primarily to increases in supplies, inbound freight and 
outside laboratory testing and collection services.  Laboratory supplies 
increased due to the increased specimen volumes tested in each segment.  
Insurance kit supplies increased due to the higher volume of kits sold.  
Inbound freight and outside laboratory testing and collection services 
increased primarily due to the increased specimen volumes in the clinical and 

                               Page 8
SAT segments.  Clinical cost of sales expenses were $3.7 million as compared 
to $2.2 million in the third quarter 1997.  SAT cost of sales expenses were 
$2.5 million as compared to $2.0 million in the third quarter 1997.

As a result of the above factors, gross profit for the quarter increased $2.2 
million (25%) from $9.1 million in 1997 to $11.3 million in 1998.  Clinical 
gross profit increased to $1.3 million in the third quarter 1998 from a loss 
of $0.4 million in the third quarter 1997.  SAT gross profit increased to $1.3
million in the third quarter 1998 from $0.8 million last year.

Selling, general and administrative expenses increased $1.0 million (16%) in 
the third quarter 1998 as compared to the prior year, due primarily to 
increases in payroll expenses and bad debt accruals.  These were partially 
offset by a decrease in depreciation expense.  Clinical expenses, including 
allocated overhead, were $2.8 million as compared to $1.8 million in 1997.  
SAT expenditures, including allocations, were $1.2 million as compared to $0.9
million last year.  The overhead allocation to the clinical and SAT testing 
segments for the third quarter 1998 was $1.5 million as compared to an 
allocation of $0.9 million in 1997.

Operating income increased from $2.3 million in the third quarter 1997 to $3.5
million in 1998.  The insurance segment increased $0.2 million.  The clinical 
segment improved $0.7 million to an operating loss of $1.4 million for the 
quarter.  The SAT segment improved $0.2 million from an operating loss of $0.1
million in the third quarter 1997 to an operating gain of $0.1 million in 
1998.

Investment income decreased $0.1 million due primarily to less funds available
for investment.  The effective income tax rate declined to 39% in 1998 from 
41% in 1997.

The combined effect of the above factors resulted in net earnings of $2.2 
million or $0.17 per share in the third quarter 1998 as compared to $1.5 
million or $0.12 per share, in the same period last year.

YEAR-TO-DATE ANALYSIS

Net sales in the nine month period ended September 30, 1998 were $74.9 million
as compared to $57.8 million in the same period last year.  The increase of 
$17.2 million is due to increases in clinical laboratory revenue of $8.0 
million, insurance laboratory revenue of $3.6 million, SAT revenue of $3.7 
million and kit revenue of $2.0 million.

The total number of insurance applicants tested in the nine month period 
increased by 13% as compared to last year, while average revenue per applicant
declined 3%.  Kit and container revenue increased $2.0 million due primarily 
to an increase in the number of oral fluid and full blood kits sold.

Clinical laboratory revenue increased from $5.5 million during the first nine 
months of 1997 to $13.4 million for the same period in 1998 due to increased 
testing volumes and higher revenue per patient.  SAT revenue increased from 
$6.8 million in 1997 to $10.4 million in 1998 due to a 51% increase in testing
volumes.

Cost of sales increased $10.6 million year to date as compared to the prior 
year.  This increase is due primarily to increases in laboratory and kit 
supplies, payroll expenses, inbound freight and outside laboratory services.  
Lab supplies increased 26%, and payroll increased 19% due to the larger volume

                               Page 9
of all specimen types processed.  Insurance kit expense increased due to the
higher volume of kits sold.  Freight and outside testing increased primarily
due to the substantial growth in clinical and SAT specimen volumes.  Clinical
cost of sales expenses were $10.7 million as compared to $6.1 million during
the first nine months of 1997.  SAT cost of sales expenses were $7.2 
million as compared to $5.1 million during 1997.

As a result of the above factors, gross profit for the first nine months 
increased from $27.0 million in 1997 to $33.6 million in 1998.  Clinical gross
profit improved from a loss of $0.7 million in 1997 to a gain of $2.8 million 
in 1998.  SAT gross profit increased to $3.2 million in the first nine months 
of 1998 from $1.7 million last year.

Selling, general and administrative expenses increased $2.8 million (14%) in 
the nine month period ended September 30, 1998 as compared to the prior year 
due primarily to increases in payroll expenses and bad debt accruals.  Payroll
expense increased primarily due to an 18% increase in headcount and increased 
benefit expenses.  These were partially offset by a decrease in depreciation 
expense.  Clinical expenditures were $7.6 million as compared to $5.5 million 
in 1997.  SAT expenses increased from $2.3 million in 1997 to $3.2 million in 
1998.  The overhead allocation to the clinical and SAT segments for the period
was $3.9 million as compared to an allocation of $2.4 million in 1997.

Operating income increased from $6.9 million in the first nine months of 1997 
to $10.6 million in 1998, primarily due to an increase in the insurance 
segment operating income of $1.9 million.  The clinical segment had an 
operating loss of $4.9 million for the nine month period ended September 30, 
1998 as compared to an operating loss of $6.2 million in 1997.  The SAT 
segment improved from an operating loss of $0.6 million in 1997 to a loss of 
$10,000 in 1998.

Investment income decreased $0.3 million primarily due to less funds available
for investment.  The effective income tax rate declined from 41% in 1997 to 
40% in 1998.

The combined effect of the above factors resulted in net earnings of $6.7 
million or $0.51 per share in the nine month period ended September 30, 1998 
as compared to $4.6 million or $0.34 per share in the same period last year.

FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES
---------------------------------------------------

LabOne's working capital position increased by $4.9 million to $40.3 million
at September 30, 1998, from $35.4 million at December 31, 1997.  This increase
is primarily due to bond proceeds and cash provided by operations before 
changes in working capital exceeding capital additions and dividends paid.  
Cash flow from operations before changes in working capital increased by $2.2 
million year to date as compared to 1997.  The increase is primarily 
attributable to the increase in net earnings.

Trade accounts receivable increased $5.0 million or 40% from December 31,
1997, due to the continuing increase in revenues.  Net additions to 
property, plant and equipment in the first nine months of 1998 were $16.1 
million, as compared to $3.2 million in 1997.  The increase is primarily 
related to construction of the new facility.

The new facility project is expected to cost approximately $33 million and is 
being financed with an industrial revenue bond (IRB) approved by the City of 

                               Page 10
Lenexa (Kansas), and signed during the third quarter 1998.  Interest on the 
bond is based on a taxable seven day variable rate.  The $33 million IRB is 
split into three series.  Series A consists of $20 million which has been sold
publicly.  Series B and C consists of $13 million which has been purchased by 
LabOne.  The company expects to repay Series A over 11 years at approximately 
$1.85 million per year plus interest.  Interest expense is based on a taxable
seven day variable rate and is currently less than 6.5%, including all
financing costs.  Debt restrictions include, but are not limited to, a net 
worth covenant and an operating cash flow covenant.  As of September 30, 
1998, total capital expenditures for this project were $17.1 million.

In August 1998, LabOne's Board of Directors declared the regular quarterly 
dividend of $0.18 per common share.  This dividend was paid on September 1, 
1998, to stockholders of record as of August 25, 1998, and totaled 
approximately $2.4 million.  The board will review the dividend payment policy
on a periodic basis.  There are currently no restrictions that would limit the
Company's ability to make future dividend payments.

The total number of shares held in treasury at September 30, 1998 was 
approximately 1.9 million at a total cost of $21.9 million or $11.78 per 
share.  The Company had no short-term borrowings in the third quarter 1998.  
The Company expects to fund operations and future dividend payments, from a 
combination of cash flows from operations and cash reserves.  At September 30,
1998, LabOne had total cash and investments of $21.6 million as compared to 
$19.5 million at December 31, 1997.

YEAR 2000
---------

LabOne is actively addressing Year 2000 computer concerns.  The company has 
established an oversight committee which includes management from all parts of
the Company and meets periodically to review progress.  The Company's 
laboratory operating systems and its business processing systems were 
completely rewritten in the past ten years and were brought into compliance 
with Year 2000 date standards at that time.  Non-IT systems, which include 
security systems, time clocks and heating and cooling systems, are being 
replaced with certified compliant systems as part of construction of the new 
facility.  The Company expects to complete all remaining internal Year 2000 
objectives by the end of the first quarter, 1999.

Ongoing remediation efforts include regularly scheduled software upgrades and 
replacement of personal computers and associated equipment, and are not unique
to the Year 2000 efforts.  LabOne is assessing the Year 2000 preparation and 
contingency plans of the Company's clients and vendors.  LabOne has material 
relationships and dependencies with its primary telecommunications provider, 
Sprint Corp., its inbound shipping provider, Airborne Express, and municipal 
services providers.  In the event of a service interruption, the Company has 
the ability to switch telecommunications services to AT&T at any time, and 
maintains backup electrical generators capable of meeting its electrical 
needs.  LabOne currently tracks and controls routing of its inbound specimens 
and can use USPS, airlines and other common carriers or express delivery 
services in the event of delivery problems with Airborne Express.  The Company
currently maintains approximately 8 weeks supply of most laboratory supplies, 
and does not expect significant problems in obtaining supplies.  The Company 
continues to review the Year 2000 plans of these providers, and does not 
currently expect significant problems in these areas, however, there can be no
assurance that the systems of clients and vendors will be converted to address
Year 2000 problems in a timely and effective manner or that such conversions 
will be compatible with the Company's computer systems.

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Resources dedicated to the remaining effort are expected to cost less than 
$0.3 million over the next 18 months and are not considered a material expense
to the Company.  These efforts have not caused delay to the Company's other 
ongoing information systems projects.  LabOne has not hired any outside 
consultants or other independent validation provider at this time, and does 
not expect to do so.

There can be no assurance that the Company's adjustments to its computer 
systems will completely eliminate all Year 2000 problems.  Failure to properly
address the Year 2000 problem could have a material adverse effect on the
Company's business, financial condition and results of operations.


                        PART II.  OTHER INFORMATION

Item 2. -  Changes in Securities

     The City of Lenexa, Kansas, has issued its Taxable Industrial Revenue 
Bonds in the amount of $20 million to provide financing for LabOne's 
acquisition, construction and equipping if its new 270,000 square foot office,
lab and warehouse facility in Johnson County, Kansas pursuant to a Lease 
Agreement between LabOne, Inc. and the City of Lenexa, Kansas.  Commerce Bank,
N.A. has provided a direct pay letter of credit to insure payment of the Bonds
pursuant to the Lease Agreement and a Reimbursement Agreement between Commerce
Bank and LabOne, Inc.  LabOne is required under the Reimbursement Agreement to
maintain a net worth of $40 million, a tangible net worth of $20 million and a
quarterly debt service coverage of not less than 3 to 1.  At September 30, 
1998, LabOne's book net worth was $51 million and its book tangible net worth 
was $46 million.  The above referenced agreements are appended hereto as 
Exhibits 4.1 to 4.3.

Item 6. -  Exhibits and Reports on Form 8-K

  (a)   Exhibits 
4.1     Trust Indenture dated as of September 1, 1998, between the City 
      of Lenexa, Kansas and Intrust Bank, N.A. related to the issuance of 
      Taxable Industrial Revenue Bonds for the LabOne, Inc. Facility 
      Project.
4.2     Lease Agreement dated as of September 1, 1998, between the City 
      of Lenexa, Kansas and LabOne, Inc. related to the Trust Indenture 
      filed as Exhibit 4.1.
4.3     Reimbursement Agreement dated as of September 1, 1998, between 
      LabOne, Inc. and Commerce Bank, N.A. related to Exhibits 4.1 
      and 4.2.
27.     Financial Data Schedule - as filed electronically by the 
      Registrant in conjunction with this third quarter 1998 Form 10-Q.

  (b)   Reports on Form 8-K

        A Form 8-K current report dated October 14, 1998, was filed with the 
commission reporting under Other Events that LabOne had entered into an 
agreement to acquire Systematic Business Services, Inc.

        A Form 8-K current report dated October 22, 1998, was filed with the 
commission providing under Other Events a cautionary statement in order to 
obtain the benefits of the "safe harbor" provisions of the Private Securities 
Litigation Reform Act of 1995.


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                             SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the 
registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.

                          LabOne, Inc.

      Date:  November 13, 1998       By  /s/ Kurt E. Gruenbacher
                                         -----------------------
                                     Kurt E. Gruenbacher, V.P. Finance, CAO
                                     and Treasurer

      Date:  November 13, 1998       By  /s/ Robert D. Thompson
                                         ----------------------
                                     Robert D. Thompson, Executive V.P., Chief
                                     Operating Officer and Chief Financial
                                     Officer

































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