UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549
                                   FORM 10-Q



          X    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE 
        -----              SECURITIES EXCHANGE ACT OF 1934
                    For the quarterly period ended March 31, 1998

        -----  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                           SECURITIES EXCHANGE ACT OF 1934
               For the transition period from ____________ to ____________


                        Commission file number 0-16946


                                LAB HOLDINGS, INC.                   
              ------------------------------------------------------
              (Exact name of registrant as specified in its charter)


                     Missouri                              43-1039532
           -------------------------------            ------------------
           (State or other jurisdiction of             (I.R.S. Employer
            incorporation or organization)            Identification No.)


                  P.O. Box 7568
           5000 W. 95th Street, Suite 260
               Shawnee Mission, KS                            64141
          --------------------------------              ---------------- 
             (Address of principal                          (Zipcode)
               executive offices)

       Registrant's telephone number, including area code (913) 648-3600
                                                          --------------

-------------------------------------------------------------------------------
           (Former name, former address and former fiscal year,
                      if changed since last report)

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, and (2) has been subject to such filing
requirements for the past 90 days.  Yes   X       No       
                                        ----          ----
Number of shares outstanding of only class of Registrant's common stock as of
May 8, 1998:   $1 par value common - 6,489,103


PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements


LAB HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
--------------------------------------------------------------------------
                                                (unaudited)
                                                  March 31,    December 31,
                                                    1998           1997
--------------------------------------------------------------------------
                                                       (In thousands)
ASSETS
Current assets: 
  Cash and cash equivalents                     $   15,430        22,129
  Short-term investments                             6,524         2,648
  Accounts and notes receivable                     15,423        12,608
  Current income taxes                                 339         1,400
  Inventories                                        1,894         2,203
  Real estate available for sale                     3,515         3,515
  Prepaid expenses and other current assets          2,418         2,459
  Deferred income taxes                              3,334         3,386
                                                  ----------------------
      Total current assets                          48,877        50,348
Property, plant and equipment                       11,335        10,441
Intangible assets                                   12,435        13,058
Deferred income taxes                                  825           858
Other assets                                            80            81
                                                  ----------------------
                                                $   73,552        74,786
                                                  ======================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable                              $    4,339         3,367
  Accrued payroll and benefits                       2,979         4,530
  Other accrued expenses                               550           423
  Other current liabilities                            248           303
                                                  ----------------------
      Total liabilities                              8,116         8,623
                                                  ----------------------
Minority interests                                   9,479         9,476
                                                  ----------------------
Stockholders' equity:
  Preferred stock of $1 par value.
    Authorized 3,000,000 shares; none issued           --            -- 
  Common stock of $1 par value.
    Authorized 24,000,000 shares;
    issued 7,500,000 shares                          7,500         7,500
  Paid-in capital                                    1,772         1,772
  Retained earnings                                 77,365        78,103
  Accumulated other comprehensive income (loss)       (536)         (544)
                                                  ----------------------
                                                    86,101        86,831
  Less cost of 1,010,897 shares of treasury stock   30,144        30,144
                                                  ----------------------
      Total stockholders' equity                    55,957        56,687
                                                  ----------------------
                                                $   73,552        74,786
                                                  ======================


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




LAB HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Statements Of Operations
----------------------------------------------------------------------------
                                                    (unaudited)
                                                Three months ended
                                                      March 31,
                                                 1998          1997
----------------------------------------------------------------------------
                                         (in thousands except share amounts)

Sales                                       $   23,333        17,740
Cost of sales                                   12,959         9,450
                                               ---------------------
  Gross profit                                  10,374         8,290
                                                                    
Selling, general and administrative              7,859         8,446
                                               ---------------------
  Earnings (loss) from operations                2,515          (156)

Investment income - net                            367         3,805
Other income (expense)                             (1)           112
                                               ---------------------
  Earnings before income taxes                   2,881         3,761
Income taxes                                     1,304         6,314
                                               ---------------------
  Earnings (loss) before minority interests      1,577        (2,553)
Minority interests                                 369           268
                                               ---------------------
  Earnings (loss) from
    continuing operations                        1,208        (2,821)
Earnings from discontinued healthcare business     --            604
                                               ---------------------
  Net earnings (loss)                       $    1,208        (2,217)
                                               =====================
Basic earnings (loss) per share
  Earnings (loss) from
    continuing operations                   $      .19          (.43)
  Earnings from discontinued
    healthcare business                             --           .09
                                               ----------------------
    Net earnings (loss)                     $      .19          (.34)
                                               ======================

Diluted earnings (loss) per share
  Earnings (loss) from
    continuing operations                   $      .18          (.43)
  Earnings from discontinued
    healthcare business                             --           .09
                                               ----------------------
    Net earnings (loss)                     $      .18          (.34)
                                               ======================

  Dividends                                 $      .30           .30
  Book value                                $     8.62         18.78

Weighted average shares outstanding           6,489,103    6,487,238
Shares outstanding end of period              6,489,103    6,489,103


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




LAB HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Statement of Stockholders' Equity and Comprehensive Income
Three Months Ended March 31, 1998 (unaudited)
---------------------------------------------------------------------------
                                            Comprehensive     Stockholders'
                                                Income           Equity
---------------------------------------------------------------------------
                                                    (in thousands)
Common stock:
  Balance, beginning and end of period       $                      7,500
                                                                 --------

Paid-in capital:
  Balance, beginning and end of period                              1,772
                                                                 --------
Retained earnings:
  Balance, beginning of year                                       78,103
  Net earnings                                   1,208              1,208
  Cash dividends paid                         --------             (1,946)
                                                                 --------
  Balance, end of period                                           77,365
                                                                 --------
Accumulated other comprehensive income (loss)
  Balance, beginning of year                                         (544)
                                                                         
  Foreign currency translation                       8                   
  Tax expense                                        -                   
                                              --------                   
                                                     8                  8
                                              --------           --------
  Balance, end of period                                             (536)
                                                                 --------

Less:
  Treasury stock:
  Balance, beginning and end of period                             30,144
                                                                 --------

    Totals                                   $   1,216             55,957
                                              ========           ========


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



LAB HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
------------------------------------------------------------------
                                                    (unaudited)
                                                Three Months Ended
                                                     March 31,
                                                 1998       1997
------------------------------------------------------------------
                                                  (In thousands)

OPERATING ACTIVITIES
Earnings (loss) from continuing operations  $    1,208     (2,821)
Adjustments to reconcile earnings(loss)
  from continuing operations to net cash
  provided by continuing operations:
    Depreciation and amortization                1,452      1,498
    Earnings applicable to minority interests      369        268
    Change in trading portfolio, net              (109)     4,088
    Change in accounts receivable               (2,816)    (2,301)
    Change in accounts payable                     972       (227)
    Income taxes and other, net                     19      3,905
                                              -------------------
      Net cash provided by continuing 
        operations                               1,095      4,410
      Net cash used by discontinued
        healthcare business                        --      (1,006)
      Net cash provided by discontinued
        real estate operations                     --         581
                                              -------------------
      Total cash provided by operations          1,095      3,985
                                              -------------------

INVESTING ACTIVITIES
Sales of investments available for sale            --       1,350
Purchases of investments held to maturity       (4,467)    (7,713)
Maturities of investments held to maturity         702        732
Additions to property, plant
  and equipment, net                            (1,725)    (1,174)
Acquisition of assets                              --      (4,121)
Other, net                                        (367)    (2,748)
                                              -------------------
  Net cash used by investing activities         (5,857)   (13,674)
                                              -------------------
FINANCING ACTIVITIES
Regular quarterly dividends paid                (1,946)    (1,947)
Cash portion of SLH dividend                       --     (19,590)
Net issuance of treasury stock pursuant to 
  stock option plans                               --          (7)
                                              -------------------
  Net cash used by financing activities         (1,946)   (21,544)
                                              -------------------
Effect of foreign currency translation               9        (13)
                                              -------------------
Net decrease in cash and cash equivalents       (6,699)   (31,246)
Cash and cash equivalents at
  beginning of period                           22,129     53,328
                                              -------------------
Cash and cash equivalents at end of period  $   15,430     22,082
                                              ===================
Supplemental disclosures of cash flow information:
 Cash paid (received) during the year for:
  Interest                                  $      --         --
                                              ===================
  Income taxes, net                         $      109        591
                                              ===================

Supplemental disclosures of non-cash information:
  SLH dividend                              $      --      28,373
                                              ===================

See accompanying notes to consolidated financial statements.



LAB HOLDINGS, INC.
Notes to Consolidated Financial Statements
March 31, 1998 and 1997

(1)  The interim financial information furnished herein is unaudited while 
the balance sheet at December 31, 1997 is derived from audited financial 
statements.  In the opinion of management, the financial information 
reflects all adjustments which are necessary to fairly state Lab Holdings' 
financial position at March 31, 1998 and December 31, 1997 and the results 
of its operations and cash flows for the periods ended March 31, 1998 and 
1997.  All adjustments made in the interim period were of a normal 
recurring nature except the accrual of termination benefits at March 31, 
1997 due to the elimination of certain Lab Holdings positions after the SLH 
distribution.  The financial statements have been prepared in conformity 
with generally accepted accounting principles appropriate in the 
circumstances, and therefore included in the financial statements are 
certain amounts based on management's informed estimates and judgments.  
The financial information herein is not necessarily representative of a 
full year's operations because levels of sales, interest rates and other 
factors fluctuate throughout the fiscal year.  These same considerations 
apply to all year to year comparisons.  Certain 1997 amounts have been 
reclassified for comparative purposes with no effect on net earnings 
(loss).  See Lab Holdings' Annual Report pursuant to Section 13 to the 
Securities Exchange Act of 1934 (Form 10-K as amended) for additional 
information not required by this Quarter's Report (Form 10-Q).

(2) On March 3, 1997, Lab Holdings distributed to its shareholders all of 
the outstanding shares of common stock of its wholly-owned subsidiary, SLH 
Corporation (SLH).  For each shareholder of record on February 24, 1997, 
one share of SLH common stock was distributed for each four shares of Lab 
Holdings common stock owned.  In connection with this distribution and 
pursuant to a Distribution Agreement between Lab Holdings and SLH, Lab 
Holdings transferred its real estate and energy businesses and 
miscellaneous assets and liabilities, including two wholly-owned 
subsidiaries, Scout Development Corporation and BMA Resources, Inc., to 
SLH.  The net assets distributed to SLH totaled approximately $48 million.  
The spinoff was accounted for as a dividend.  The Lab Holdings shareholders 
paid no consideration for any shares of SLH stock received in the 
distribution.

(3) On July 25, 1997, Lab Holdings distributed to its shareholders all of 
the shares of common stock of Response Oncology, Inc. (Response) owned by 
Lab Holdings.  For each shareholder of record on July 11, 1997, 1.2447625 
shares of Response common stock were distributed for each share of Lab 
Holdings common stock outstanding.  The distribution of all shares of 
Response stock to Lab Holdings' shareholders was effected as a dividend.  
The Lab Holdings shareholders paid no consideration for any shares of 
Response stock received in the distribution.

Lab Holdings' share of Response's earnings are shown as a discontinued 
business in the accompanying financial statements.

As a result of the SLH and Response distributions, Lab Holdings' principal 
asset consists of its 82% ownership of LabOne, Inc. (LabOne).

(4)  Cash and cash equivalents include demand deposits in banks, money 
market investments and overnight investments that are stated at cost, which 
approximates market value.

(5)  Basic earnings per share is computed using the weighted average number 
of common shares and diluted earnings per share is computed using the 
weighted average number of common shares and dilutive stock options.

Earnings available to common shareholders was adjusted to reflect the 
Company's share of LabOne's earnings based on a diluted ownership after 
taking into account LabOne's common stock equivalents.  The following table 
reconciles net earnings and weighted average shares used to computed basic 
and diluted earnings per share.

                                                 March 31, 1998
                                    -----------------------------------
                                    Earnings from
                                     Continuing               Per Share
                                     Operations    Shares      Amount
                                    -----------------------------------
Basic earnings per share           $ 1,208,000    6,489,103     $ .19

Effect of dilutive securities:
  Lab Holdings stock options              --            --
  LabOne stock options                 (23,000)         --
                                    -----------------------------------
Dilutive earnings per share        $ 1,185,000    6,489,103     $ .18
                                    ===================================

                                                 March 31, 1997
                                    -----------------------------------
                                     Loss from
                                     Continuing               Per Share
                                     Operations    Shares      Amount
                                    -----------------------------------
Basic loss per share               $(2,821,000)   6,487,238     $(.43)

Effect of dilutive securities:
  Lab Holdings stock options              --            --
  LabOne stock options                    --            --
                                    -----------------------------------
Dilutive loss per share            $(2,821,000)   6,487,238     $(.43)
                                    ===================================

Computation of dilutive loss per share at March 31, 1997 did not include 
the effect of stock options because to do so would have been antidilutive.

(6)  LabOne operates in three lines of business:  insurance risk appraisal 
testing, clinical diagnostic testing and substance abuse testing.  The 
following table presents the Company's selected financial information for 
each segment.

                                                       Three Months Ended
                                                            March 31,
                                                        1998        1997
                                                       ------------------
                                                          (in thousands)
Sales
  Insurance risk appraisal testing                   $ 16,822      14,429
  Clinical diagnostic testing                           3,654       1,541
  Substance abuse testing                               2,857       1,770
                                                       ------------------
    Total sales                                      $ 23,333      17,740
                                                       ==================

Operating Income (Loss)
  Insurance risk appraisal testing                   $  5,212       4,311
  Clinical diagnostic testing                          (1,935)     (2,104)
  Substance abuse testing                                (179)       (310)
  General corporate expense                              (583)     (2,053)
                                                       ------------------
    Earnings (loss) from operations                     2,515        (156)
  Investment income - net                                 367       3,805
  Other income (expense)                                   (1)        112
                                                       ------------------
    Earnings before income taxes                     $  2,881       3,761
                                                       ==================

There were no material changes in asset levels by segment or in the basis 
of segmentation or measurement of segment operating income or loss.

(7)  The Company adopted the provisions of the Statement of Financial 
Accounting Standards No. 130, "Reporting Comprehensive Income" on January 
1, 1998.  Comprehensive income is defined as any change in equity from 
transactions and other events originating from non-owner sources.  For Lab 
Holdings, those changes are composed of reported net income and changes in 
unrealized foreign currency translation adjustments.  The components of 
comprehensive income are as follows.

                                                            March 31,
                                                        1998        1997
                                                       ------------------
                                                          (in thousands)

Net earnings (loss)                                  $  1,208      (2,217)
                                                       ------------------
Other comprehensive income
  Foreign currency translation                              8         (27)
  Tax expense                                              --          --
                                                       ------------------
    Total other comprehensive income                        8         (27)
                                                       ------------------
      Total Comprehensive Income                     $  1,216      (2,244)
                                                       ==================






ITEM 2.


MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
         AND RESULTS OF OPERATIONS.


RESULTS OF OPERATIONS


Selected Financial Data
                                         Three months ended
                                               March 31,
                                        -----------------------
                                           1998        1997
                                        ----------   ----------

Sales                                  $23,333,000   17,740,000
Earnings (Loss) from 
  operations                           $ 2,515,000     (156,000)
Investment income - net                $   367,000    3,805,000
Earnings (Loss) from 
  continuing operations                $ 1,208,000   (2,821,000)
Earnings from discontinued
  healthcare business                  $        --      604,000
Net earnings (loss)                    $ 1,208,000   (2,217,000)

Basic earnings per share:
  Earnings (loss) from continuing
    operations                         $       .19         (.43)
  Earnings (loss) from discontinued
    healthcare business                         --          .09
  Net earnings (loss)                  $       .19         (.34)
Dividends per share                    $       .30          .30
Book value per share                   $      8.62        18.78



Introductory remarks about results of operations

Lab Holdings, Inc.'s (Lab Holdings or Registrant) principal assets consist 
of a majority ownership of LabOne, Inc. (LabOne) and approximately $5.2 
million in cash and short-term investments.  Prior to October 20, 1997, Lab 
Holdings was named Seafield Capital Corporation (Seafield).  Seafield 
changed its name to Lab Holdings for better identification with its primary 
asset, the 82% ownership of LabOne.

Lab Holdings had a majority ownership position in Response Oncology, Inc. 
(Response).  On July 25, 1997, Lab Holdings distributed to its shareholders 
all the shares of common stock of Response owned by Lab Holdings.  The 
distribution of Response stock was effected as a taxable dividend by Lab 
Holdings.  Response's 1997 operations are presented as a discontinued 
healthcare business in Lab Holdings' financial statements.

Response, previously 67%-owned by Lab Holdings, is a publicly-traded 
company (NASDAQ-ROIX).  On February 26, 1997, Lab Holdings converted a 
$23.5 million Response note receivable and accrued interest into 3,020,536 
shares of Response common stock.  The conversion increased Lab Holdings' 
ownership of Response shares outstanding from 56% at December 31, 1996 to 
approximately 67%.

Additionally, Lab Holdings had investments in real estate, energy 
businesses and miscellaneous assets.  On March 3, 1997, Lab Holdings 
distributed to its shareholders all of the outstanding shares of common 
stock of its wholly-owned subsidiary, SLH Corporation (SLH).  In connection 
with this distribution and pursuant to a Distribution Agreement between Lab 
Holdings and SLH, Lab Holdings transferred its real estate and energy 
businesses and miscellaneous assets and liabilities to SLH.  The SLH spin-
off was accounted for as a dividend.  

LabOne provides high-quality laboratory services to insurance companies, 
physicians and employers.

LabOne provides risk-appraisal laboratory services to the insurance 
industry.  The tests performed 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.  LabOne also 
provides testing services on specimens of individuals applying for 
individual and group medical and disability policies.

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 LabOne 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. LabOne does this 
through Lab Card(trademark) 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 350,000 members.  LabOne's LBM programs, including BlueCare 
and the Lab Card program, have more than 1.9 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.


FIRST QUARTER ANALYSIS

Net sales increased 32% in the first quarter 1998 to $23.3 million from 
$17.7 million in the first quarter 1997.  The increase of $5.6 million is 
due to increases in insurance segment revenue of $2.4 million, clinical 
revenue of $2.1 million and substance abuse testing (SAT) revenue of $1.1 
million.  The total number of insurance applicants tested in the first 
quarter 1998 increased by 17% as compared to the same quarter last year due 
to growth in market share and oral fluid testing volumes.  Average revenue 
per applicant decreased 2%.  Kit and container revenue increased due 
primarily to an increase in the number of oral fluid and full blood kits 
sold.  Clinical diagnostic testing revenue increased from $1.5 million in 
1997 to $3.7 million in 1998 due to increases in testing volumes and in 
average revenue per patient.  SAT revenue increased from $1.8 million to 
$2.9 million for the quarter due to increased testing volumes as compared 
to last year.

Cost of sales increased $3.5 million or 37% in the first quarter 1998 as 
compared to the prior year, due primarily to increases in supplies, inbound 
freight and outside laboratory and collection services.  Lab supplies 
increased due to the increased specimen volumes tested in each segment.  
Insurance kit supplies increased due to the higher volume of kits sold and 
the increase in cost of oral fluid kits for HIV testing.  Inbound freight 
and outside laboratory and collection services increased due to the 
increased specimen volumes and expense related to the February start-up of 
BlueCare.  Clinical cost of sales expenses were $3.4 million as compared to 
$1.9 million in the first quarter 1997.  SAT cost of sales expenses were 
$2.1 million as compared to $1.4 million in the first quarter 1997.

As a result of the above factors, gross profit for the quarter increased 
$2.1 million (25%) from $8.3 million in 1997 to $10.4 million in 1998.  
Insurance gross profit increased $1.1 million or 13%.  Clinical gross 
profit increased $600,000 to $300,000 for the quarter.  SAT gross profit 
increased $400,000 to $800,000 for the quarter.

LabOne's selling, general and administrative expenses increased $1 million 
(16%) in the first quarter 1998 as compared to the prior year due primarily 
to increases in payroll expenses.  These were partially offset by a 
decrease in depreciation and printing expenses.  Clinical overhead 
expenditures, including allocations, were $2.2 million as compared to $1.7 
million in 1997.  SAT expenditures were $1 million as compared to $700,000 
last year.  The overhead allocation to the clinical and SAT testing 
segments for the first quarter 1998 was $1.1 million as compared to an 
allocation of $700,000 in 1997.  These increases are due to increased 
testing revenue in those segments.

Lab Holding's selling, general and administrative expenses decreased $1.7 
million (74%) to $549,000 in the first quarter 1998 from $2.2 million in 
the first quarter of 1997 as Lab Holding's significantly reduced its 
corporate structure after the SLH and Response distributions.  Goodwill 
amortization of $368,000 associated with Lab Holdings' investment in LabOne 
was included in the first quarter operating results of both 1998 and 1997.

Consolidated earnings from operations increased to $2.5 million in 1998's 
first quarter from a loss of $156,000 in the first quarter 1997 primarily 
reflecting Lab Holdings reduction in corporate structure.  LabOne's 
insurance segment operating income increased $900,000.  The clinical 
segment improved $200,000 to an operating loss of $1.9 million.  The SAT 
segment improved $100,000 from an operating loss of $300,000 in the first 
quarter 1997 to a loss of $200,000 in 1998.

Other investments contributing earnings include venture capital and 
liquidity investments.  The return on short-term investments is included in 
the investment income line in the consolidated statements of operations.  
Investment income decreased to $367,000 in 1998's first quarter from $3.8 
million in 1997's first quarter, which primarily reflected a $3 million 
gain by Lab Holdings on the sale of marketable common stock.

Miscellaneous items produced a $l,000 loss in 1998's first quarter as 
compared to income of $112,000 in 1997's first quarter, which consisted of 
receipts on receivables accounted for on the cost recovery method, net of 
other expense items.

Tax expense decreased to $1.3 million in 1998's first quarter from $6.3 
million in 1997's first quarter, which included a write-off of 
approximately $5 million of the deferred income tax assets related to 
assets spun off in the SLH distribution.

The combined effect of the above factors resulted in the first quarter 1998 
earnings from continuing operations of $1.2 million, compared with a loss 
from continuing operations of $2.8 million in the first quarter 1997.



Discontinued Operations:

Healthcare Business:

On July 25, 1997, Lab Holdings distributed to its shareholders all the 
shares of common stock of Response owned by Lab Holdings.  Response's 
operations are presented as a discontinued healthcare business in Lab 
Holdings' financial statements.  The second quarter of 1997 was the last 
period in which Response significantly impacted Lab Holdings' financial 
results.  The distribution of Response stock was effected as a taxable 
dividend by Lab Holdings in which Lab Holdings utilized tax loss 
carryforwards to offset a resulting tax liability in the financial 
statements.   The first quarter 1997's discontinued healthcare operations 
reflected Lab Holdings' share of earnings by Response during the quarter 
and amortization of goodwill.  For the first quarter of 1997, Response's 
revenues were $24.4 million, healthcare costs and expenses were $20 
million, other general and administrative expense were $1.7 million and net 
earnings totaled $867,000.

Publicly-Traded Subsidiary

Lab Holdings' majority-owned entity, LabOne, is publicly-traded.  At March 
31, 1998, based on the market prices of publicly-traded shares of this 
subsidiary, pretax unrealized gains of approximately $128.9 million on this 
investment were not reflected in either Lab Holdings' book value or 
stockholders' equity.


LIQUIDITY AND CAPITAL RESOURCES

On March 31, 1998, at the holding company level, Lab Holdings had available 
for operations approximately $5.2 million in cash and short-term 
investments.  Lab Holdings' working capital at March 31, 1998 equaled the 
$6.3 million of working capital at December 31, 1997.

On a consolidated basis, Lab Holdings had $22 million in cash and short-
term investments at March 31, 1998.  Current assets totaled approximately 
$48.9 million while current liabilities totaled $8.1 million.  Accounts 
receivable increased $2.8 million or 22% from December 31, 1997 due to 
LabOne's 32% increase in revenues for the quarter.

Net cash provided by operations totaled $1.1 million in 1998's first 
quarter compared with $4 million in 1997's first quarter.  During 1998, the 
net cash provided by operations included $1.2 million of earnings from 
continuing operations, a non-cash item of $1.5 million for depreciation and 
amortization, a $972,000 increase in accounts payable, and a $2.8 million 
increase in accounts receivable.  During 1997, the net cash provided by 
operations included a $2.8 million loss from continuing operations, a non-
cash item of $1.5 million for deprecation and amortization, a decrease in 
trading portfolios of $4.1 million, a $2.3 million increase in accounts 
receivable, a net change in income taxes and other of $3.9 million and 
$425,000 of net cash used by discontinued healthcare and real estate 
operations.  The discontinued healthcare business used $1 million and 
discontinued real estate operations provided $581,000. 

Net cash used by investing activities in 1998's first quarter totaled $5.9 
million reflecting a net increase in long-term investments of $3.8 million 
and $1.7 million of additions to property, plant and equipment.  Net cash 
used by investing activities in 1997's first quarter totaled $13.7 million 
reflecting a net increase in long-term investments of $5.6 million, $1.2 
million of net additions to property, plant and equipment supporting 
expanded laboratory capacity and $4.1 million of intangible asset purchases 
by LabOne associated with its purchase of the assets and customer list of 
GIB Laboratories, Inc.

Net cash used by financing activities of $1.9 million in 1998's first 
quarter reflects Lab Holdings regular cash dividends to its shareholders.
Net cash used by financing activities in 1997's first quarter totaled $21.5 
million primarily due to the $19.6 million cash transferred to SLH and 
regular cash dividends of $1.9 million.

Lab Holdings is currently a holding company.  Sources of cash are 
investment income and subsidiary dividends.  There are currently no 
restrictions that would limit LabOne's ability to make future dividend 
payments.  The primary uses of cash for Lab Holdings are investments, 
operating expenses and dividends to shareholders.

LabOne paid regular first quarter dividends in 1998 and 1997.  As an 82% 
owner, Lab Holdings received $1.9 million of cash as dividends from LabOne 
in 1998.  LabOne's working capital position declined $900,000 to $34.5 
million at March 31, 1998 from $35.4 million at December 31, 1997.  This 
decrease is primarily due to dividends paid and capital additions exceeding 
LabOne's cash provided by operations before changes in working capital.

During the first quarter of 1998, LabOne's net additions to property, plant 
and equipment were $1.7 million, primarily related to construction of its 
new facility and the purchase of computer equipment.  Net additions in the 
first quarter 1997 were $5.3 million, of which approximately $4.8 million 
was related to the GIB purchase.  

LabOne's new facility project is expected to cost approximately $30 
million.  Financing with an industrial revenue bond (IRB) arrangement is 
being negotiated.  The IRB is expected to be in place during the third 
quarter 1998.  Interest on the bond will be based on a taxable seven day 
variable rate.  LabOne expects to repay the bond over 12 years at $2.5 
million per year plus interest.  As of March 31, 1998, total capital 
expenditures for this project were $5.7 million.  

LabOne had no short-term borrowings in the first quarter 1998.  LabOne 
expects to fund operations and future dividend payments from a combination 
of cash flows from operations and cash reserves.  


RECENTLY ISSUED ACCOUNTING STANDARDS

No recently issued accounting standards presently exist which will require 
adoption in future periods.



PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings
         None.

Item 2.  Changes in Securities
         (a)  Changes in Securities:  None

         (b)  Under the Missouri General Corporation Law, no dividends to 
stockholders may be declared or paid at a time when the net assets of the 
corporation are less than its stated capital or when the payment thereof 
would reduce the net assets of the corporation below its stated capital.  
At March 31, 1998, the net assets of Lab Holdings, Inc. exceeded its stated 
capital by $48,457,000.

Item 3.  Defaults Upon Senior Securities
         None.

Item 4.  Submission of Matters to a Vote of Securities Holders
         None.

Item 5.  Other Information
         None.

Item 6.  Exhibits and Reports on Form 8-K

         (a)  Exhibits:
              27     Financial Data Schedule - as filed electronically by 
the Registrant in conjunction with this Form 10-Q.

         (b)  Reports on Form 8-K:
              A current report on Form 8-K was filed on January 27, 1998 to 
report that Lab Holdings' 82% owned subsidiary, LabOne, Inc., had reported 
a net loss of $2.4 million for the fourth quarter 1997.  This loss included 
a one-time, non-cash, pre-tax write off of $6.6 million related to the 
anticipated sale of its current facilities.



                                  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.


                                     Lab Holdings, Inc.

Date May 13, 1998                    By  /s/  P. Anthony Jacobs
                                        ----------------------------    
                                        P. Anthony Jacobs
                                        President and Chief Executive Officer


Date May 13, 1998                    By  /s/  Steven K. Fitzwater
                                        ----------------------------
                                        Steven K. Fitzwater
                                        Vice President, Chief Financial
                                        and Accounting Officer and Secretary