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 June 30, 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                            66207
          --------------------------------              ---------------- 
             (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
August 11, 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)
                                                   June 30,    December 31,
                                                    1998           1997
--------------------------------------------------------------------------
                                                       (In thousands)
ASSETS
Current assets: 
  Cash and cash equivalents                     $   15,910        22,129
  Short-term investments                             1,876         2,648
  Accounts and notes receivable                     15,684        12,608
  Current income taxes                               1,545         1,400
  Inventories                                        1,629         2,203
  Real estate available for sale                     3,515         3,515
  Prepaid expenses and other current assets          2,410         2,459
  Deferred income taxes                              3,682         3,386
                                                  ----------------------
      Total current assets                          46,251        50,348
Property, plant and equipment                       15,093        10,441
Intangible assets                                   11,855        13,058
Deferred income taxes                                  606           858
Other assets                                            24            81
                                                  ----------------------
                                                $   73,829        74,786
                                                  ======================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable                              $    4,075         3,367
  Accrued payroll and benefits                       3,949         4,530
  Other accrued expenses                               398           423
  Other current liabilities                            194           303
                                                  ----------------------
      Total liabilities                              8,616         8,623
                                                  ----------------------
Minority interests                                   9,562         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                                 77,118        78,103
  Accumulated other comprehensive income (loss)       (595)         (544)
                                                  ----------------------
                                                    85,795        86,831
  Less cost of 1,010,897 shares of treasury stock   30,144        30,144
                                                  ----------------------
      Total stockholders' equity                    55,651        56,687
                                                  ----------------------
                                                $   73,829        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        Six Months Ended
                                        June 30,                 June 30,
                                   1998        1997         1998        1997
----------------------------------------------------------------------------
                                     (in thousands except share amounts)
Sales                         $   25,763      20,308       49,096      38,048
Cost of sales                     13,832      10,636       26,791      20,086
                                ---------------------    ---------------------
  Gross profit                    11,931       9,672       22,305      17,962
Selling, general and
  administrative                   8,424      10,736       16,283      19,182
                                ---------------------    ---------------------
  Earnings (loss) from
    operations                     3,507      (1,064)       6,022      (1,220)
Investment income - net              289         395          656       4,200
Other income (expense)               (25)        (28)         (26)         84
                                ---------------------    ---------------------
  Earnings (loss) before
    income taxes                   3,771        (697)       6,652       3,064
Income taxes                       1,607       3,259        2,911       9,573
                                ---------------------    ---------------------
  Earnings (loss) before
    minority interests             2,164      (3,956)       3,741      (6,509)
Minority interests                   464         330          833         598
                                ---------------------    ---------------------
  Earnings (loss) from continuing
    operations                     1,700      (4,286)       2,908      (7,107)
Loss from discontinued
  healthcare business                --       (2,946)         --       (2,342)
                                ---------------------    ---------------------
Net earnings (loss)           $    1,700      (7,232)       2,908      (9,449)
                                =====================    =====================
Basic earnings (loss) per share:
  Earnings (loss) from
    continuing operations     $      .26        (.66)         .45       (1.10)
  Loss from discontinued
    healthcare business              --         (.45)         --         (.36)
                                ---------------------    ---------------------
  Net earnings (loss)         $      .26       (1.11)         .45       (1.46)
                                =====================    =====================

Diluted earnings (loss) per share:
  Earnings (loss) from
    continuing operations     $      .26        (.66)         .44       (1.10)
  Loss from discontinued
    healthcare business              --         (.45)         --         (.36)
                                ---------------------    ---------------------
  Net earnings (loss)         $      .26       (1.11)         .44       (1.46)
                                =====================    =====================

Dividends                     $      .30         .30          .60         .60
Book value                    $     8.58       17.36         8.58       17.36
Weighted average shares
 outstanding                   6,489,103   6,489,103    6,489,103   6,488,176
Shares outstanding
  end of period                6,489,103   6,489,103    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
Six Months Ended June 30, 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                                   2,908              2,908
  Cash dividends paid                         --------             (3,893)
                                                                 --------
  Balance, end of period                                           77,118
                                                                 --------
Accumulated other comprehensive income (loss)
  Balance, beginning of year                                         (544)
                                                                         
  Foreign currency translation                     (51)                  
  Tax expense                                        -                   
                                              --------                   
                                                   (51)               (51)
                                              --------           --------
  Balance, end of period                                             (595)
                                                                 --------

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

    Totals                                   $   2,857             55,651
                                              ========           ========


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)
                                                  Six Months Ended
                                                      June 31,
                                                 1998       1997
------------------------------------------------------------------
                                                  (In thousands)

OPERATING ACTIVITIES
Earnings (loss) from continuing operations  $    2,908     (7,107)
Adjustments to reconcile earnings(loss)
  from continuing operations to net cash
  provided by continuing operations:
    Depreciation and amortization                2,828      2,954
    Earnings applicable to minority interests      833        598
    Change in trading portfolio, net                69     34,490
    Change in accounts receivable               (3,076)    (3,746)
    Change in accounts payable                     708         36
    Income taxes and other, net                   (214)     6,523
                                              -------------------
      Net cash provided by continuing 
        operations                               4,056     33,748
      Net cash used by discontinued
        healthcare business                        --      (1,006)
      Net cash provided by discontinued
        real estate operations                     --         581
                                              -------------------
      Total cash provided by operations          4,056     33,323
                                              -------------------

INVESTING ACTIVITIES
Sales of investments available for sale            --       1,350
Purchases of investments held to maturity       (5,461)   (10,190)
Maturities of investments held to maturity       6,202      5,232
Additions to property, plant
  and equipment, net                            (6,319)    (2,391)
Acquisition of assets                              --      (4,128)
Other, net                                        (748)      (623)
                                              -------------------
  Net cash used by investing activities         (6,326)   (10,750)
                                              -------------------
FINANCING ACTIVITIES
Regular quarterly dividends paid                (3,893)    (3,893)
Cash portion of SLH dividend                       --     (19,590)
Net issuance of treasury stock pursuant to 
  stock option plans                               --          (7)
                                              -------------------
  Net cash used by financing activities         (3,893)   (23,490)
                                              -------------------
Effect of foreign currency translation             (56)       (19)
                                              -------------------
Net decrease in cash and cash equivalents       (6,219)      (936)
Cash and cash equivalents at
  beginning of period                           22,129      4,957
                                              -------------------
Cash and cash equivalents at end of period  $   15,910      4,021
                                              ===================
Supplemental disclosures of cash flow information:
 Cash paid (received) during the year for:
  Interest                                  $      --         --
                                              ===================
  Income taxes, net                         $    3,059      1,417
                                              ===================

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

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



LAB HOLDINGS, INC.
Notes to Consolidated Financial Statements
June 30, 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 June 30, 1998 and December 31, 1997 and the results 
of its operations and cash flows for the periods ended June 30, 1998 and 
1997.  All adjustments made in the interim period were of a normal 
recurring nature.  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 Quarterly Report on 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 approximate 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 compute basic 
and diluted earnings per share.

                                                 June 30, 1998
                                    -----------------------------------
                                    Earnings from
                                     Continuing               Per Share
                                     Operations    Shares      Amount
                                    -----------------------------------
Basic earnings per share           $ 2,908,000    6,489,103     $ .45

Effect of dilutive securities:
  Lab Holdings stock options              --            --
  LabOne stock options                 (52,000)         --
                                    -----------------------------------
Dilutive earnings per share        $ 2,856,000    6,489,103     $ .44
                                    ===================================

                                                 June 30, 1997
                                    -----------------------------------
                                     Loss from
                                     Continuing               Per Share
                                     Operations    Shares      Amount
                                    -----------------------------------
Basic loss per share               $(9,449,000)   6,488,176   $ (1.46)

Effect of dilutive securities:
  Lab Holdings stock options              --            --
  LabOne stock options                    --            --
                                    -----------------------------------
Dilutive loss per share            $(9,449,000)   6,488,176   $ (1.46)
                                    ===================================

Computation of dilutive loss per share at June 30, 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      Six Months Ended
                                     June 30,               June 30,
                                 1998        1997       1998        1997
                                ------------------     ------------------
                                              (in thousands)
Sales
  Insurance risk
    appraisal testing           $ 17,572     15,897      34,394     30,326
  Clinical diagnostic testing      4,723      2,120       8,377      3,661
  Substance abuse testing          3,468      2,291       6,325      4,061
                                 -------------------    -------------------
    Total sales                 $ 25,763     20,308      49,096     38,048
                                 ===================    ===================

Operating Income (Loss)
  Insurance risk
    appraisal testing           $  5,573      4,735      10,786      9,046
  Clinical diagnostic testing     (1,509)    (1,895)     (3,444)    (3,999)
  Substance abuse testing             40       (198)       (139)      (507)
  General corporate expense         (597)    (3,706)     (1,181)    (5,760)
                                 -------------------    -------------------
    Earnings (loss)
      from operations              3,507     (1,064)      6,022     (1,220)
  Investment income - net            289        395         656      4,200
  Other income (expense)             (25)       (28)        (26)        84
                                 -------------------    -------------------
    Earnings (loss) before
      income taxes              $  3,771       (697)      6,652      3,064
                                 ===================    ===================

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.

                                                            June 30,
                                                        1998        1997
                                                       ------------------
                                                          (in thousands)

Net earnings (loss)                                  $  2,908      (9,449)
                                                       ------------------
Other comprehensive income
  Foreign currency translation                            (51)        (37)
  Tax expense                                              --          --
                                                       ------------------
    Total other comprehensive income                      (51)        (37)
                                                       ------------------
      Total Comprehensive Income                     $  2,857      (9,486)
                                                       ==================






ITEM 2.


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


RESULTS OF OPERATIONS


Selected Financial Data
                              Three months ended        Six months ended
                                    June 30,                June 30,
                             ----------------------  --------------------
                                1998        1997         1998        1997
                             ----------  ----------  ---------    -------

Sales                      $25,763,000  20,308,000   49,096,000 38,048,000  
Earnings (Loss) from 
  operations               $ 3,507,000  (1,064,000)   6,022,000 (1,220,000) 
Investment income - net    $   289,000     395,000      656,000  4,200,000
Earnings (Loss) from 
  continuing operations    $ 1,700,000  (4,286,000)   2,908,000 (7,107,000) 
Loss from discontinued
  healthcare business      $        --  (2,946,000)          -- (2,342,000)
Net earnings (loss)        $ 1,700,000  (7,232,000)   2,908,000 (9,449,000) 

Basic earnings per share:
  Earnings (loss) from 
   continuing operations   $       .26        (.66)         .45      (1.10)
  Loss from discontinued
    healthcare business             --        (.45)          --       (.36)
  Net earnings (loss)      $       .26       (1.11)         .45      (1.46)
Dividends per share        $       .30         .30          .60        .60  
Book value per share       $      8.58       17.36         8.58      17.36



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 $5.1 
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 approximate 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), 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 350,000 members.  LabOne's LBM programs, including BlueCare 
and the Lab Card program, have approximately 2 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.


SECOND QUARTER ANALYSIS

Revenues increased 27% to $25.8 million in the second quarter 1998 from 
$20.3 million in the second quarter 1997 due to increases in all business 
segments.  Insurance segment revenue increased to $17.6 million during the 
second quarter 1998 as compared to $15.9 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 second 
quarter 1998 increased by 13% as compared to the same quarter last year.  
Average revenue per applicant decreased 4% 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 123% from $2.1 million 
in the second quarter 1997 to $4.7 million in 1998 due to a 94% increase in 
testing volumes and a 15% increase in the average revenue per patient.  
Substance abuse testing (SAT) revenue increased 51% from $2.3 million in 
the second quarter 1997 to $3.5 million in 1998 primarily due to increased 
testing volumes.

Cost of sales increased $3.2 million in the second 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 SAT segments.  Clinical cost of sales expenses were $3.6 
million as compared to $2.1 million in the second quarter 1997.  SAT cost 
of sales expenses were $2.3 million as compared to $1.7 million in the 
second quarter 1997.

As a result of the above factors, gross profit for the quarter increased 
$2.3 million (23%) from $9.7 million in the second quarter 1997 to $11.9 
million in the second quarter 1998.  Clinical gross profit increased to 
$1.1 million in the second quarter 1998 from $39,000 in the second quarter 
1997.  SAT gross profit increased to $1.1 million in the second quarter 
1998 from $600,000 in the second quarter 1997.

LabOne's selling, general and administrative expenses increased $800,000 
(11%) in the second 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 expenses.  Clinical 
expenses, including allocated overhead, were $2.6 million as compared to 
$1.9 million in 1997.  SAT expenditures, including allocations, were $1.1 
million as compared to $700,000 last year.  The overhead allocation to the 
clinical and SAT testing segments for the second quarter 1998 was $1.3 
million as compared to an allocation of $800,000 in 1997.

Lab Holding's selling, general and administrative expenses decreased to 
$191,000 in the second quarter 1998 from $3.3 million in the second 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 second quarter operating results of both 1998 and 1997.

Consolidated earnings from operations increased to $3.5 million in 1998's 
second quarter from a loss of $1.1 million in the second quarter of 1997 
reflecting both Lab Holdings reduction in corporate structure expenses and 
improvements in LabOne's operating results.  LabOne's insurance segment 
operating income increased $800,000.  The clinical segment improved 
$400,000 to an operating loss of $1.5 million.  The SAT segment improved 
$200,000 from an operating loss of approximately $200,000 in the second 
quarter 1997 to an operating gain of $40,000 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 $289,000 in 1998's second quarter from 
$395,000 in 1997's second quarter, which primarily reflected less funds 
available for investment.  Miscellaneous items produced a $25,000 loss in 
1998's second quarter as compared to a loss of $28,000 in 1997's second 
quarter.

Tax expense decreased to $1.6 million in 1998's second quarter from $3.3 
million in 1997's second quarter.  During 1997's second quarter, 
approximately $3.2 million of unused deferred income tax assets not 
utilized in the Response distribution were written off.

The combined effect of the above factors resulted in the second quarter 
1998 earnings from continuing operations of $1.7 million, compared with a 
loss from continuing operations of $4.3 million in the second quarter 1997.

Discontinued 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 second quarter 1997 loss of $2.9 million from 
discontinued healthcare operations reflected a $3.8 million non-cash tax 
expense net of $878,000 for Lab Holdings' share of earnings by Response 
during the quarter.  For the second quarter of 1997, Response's revenues 
were $25.6 million and net earnings totaled $1.2 million.


YEAR-TO-DATE ANALYSIS

Revenue in the six month period ended June 30, 1998 was $49.1 million as 
compared to $38 million in the same period last year.  The increase of 
approximately $11 million is due to increases in clinical laboratory 
revenue of $4.7 million, insurance laboratory revenue of $2.8 million, SAT 
revenue of $2.3 million and kit revenue of $1.3 million.

The total number of insurance applicants tested in the six month period 
increased by 15% as compared to last year, while average revenue per 
applicant declined 3%.  Kit and container revenue increased $1.3 million 
due primarily to an increase in the number of full blood and oral fluid 
kits sold.

Clinical laboratory revenue increased from $3.7 million during the first 
six months of 1997 to $8.4 million for the same period in 1998 due to 
increased testing volumes and higher revenue per patient.  SAT revenue 
increased from $4.1 million in 1997 to $6.3 million in 1998 due to a 55% 
increase in testing volumes.

Cost of sales increased $6.7 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 27% due to the larger volume of all 
specimen types processed, and insurance kit expense increased due to the 
higher volume of kits sold.  Payroll increased 16%.  Freight and outside 
testing increased primarily due to the substantial growth in clinical and 
SAT specimen volumes.  Clinical cost of sales expenses were $7 million as 
compared to $4 million during the first six months of 1997.  SAT cost of 
sales expenses were $4.4 million as compared to $3.1 million during 1997.

As a result of the above factors, gross profit for the first six months 
increased from $18 million in 1997 to $22.3 million in 1998.  Clinical 
gross profit improved from a loss of $300,000 in 1997 to a gain of $1.4 
million in 1998.  SAT gross profit increased to $1.9 million in the first 
six months of 1998 from $900,000 last year.

LabOne's selling, general and administrative expenses increased $1.8 
million (13%) in the six month period ended June 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 a 13% increase in 
headcount and increased benefit expenses.  These were partially offset by a 
decrease in depreciation expense.  Clinical expenditures were $4.9 million 
as compared to $3.7 million in 1997.  SAT expenses increased from $1.5 
million in 1997 to $2.1 million in 1998.  The overhead allocation to the 
clinical and SAT segments for the period was $2.4 million as compared to an 
allocation of $1.5 million in 1997.

Lab Holding's selling, general and administrative expenses decreased to 
$372,000 in the first six months of 1998 from $5.1 million in the first six 
months of 1997 as Lab Holding's significantly reduced its corporate 
structure after the SLH and Response distributions.  Goodwill amortization 
of $736,000 associated with Lab Holdings' investment in LabOne was included 
in the first six months operating results of both 1998 and 1997.

Consolidated earnings from operations increased to $6 million in 1998's 
first six months from a loss of $1.2 million in the first six months of 
1997 reflecting both Lab Holdings reduction in corporate structure expenses 
and improvements in LabOne's operating results.  LabOne's operating income 
increased from $4.5 million in the first six months of 1997 to $7.1 million 
in 1998, primarily due to an increase in the insurance segment operating 
income of $1.7 million.  The clinical segment had an operating loss of $3.4 
million for the six month period ended June 30, 1998 as compared to an 
operating loss of $4.0 million in 1997.  The SAT segment improved from an 
operating loss of $500,000 in 1997 to a loss of $100,000 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 $656,000 in 1998's first six months from 
$4.2 million in 1997's first six months, which primarily reflected a $3 
million gain by Lab Holdings on the sale of marketable common stock.

Tax expense decreased to $2.9 million in 1998's first six months from $9.6 
million in 1997's first six months.  During 1997's first six months, tax 
expense included the write off of approximately $5 million of the deferred 
income tax assets related to assets spun off in the SLH distribution and 
the write off of approximately $3.2 million of unused deferred income tax 
assets not utilized in the Response distribution.

The combined effect of the above factors resulted in earnings from 
continuing operations of $2.9 million for the first six months of 1998  , 
compared with a loss from continuing operations of $7.1 million in the 
first six months of 1997.

Discontinued 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 $2.3 million loss from discontinued 
healthcare business in Lab Holdings' financial statements.  During the 
first six months of 1997, Response's revenues were $50 million and net 
earnings totaled $2.1 million.

The combined effect of the above factors resulted in net earnings of $2.9 
million or $0.45 basic earnings per share in the six month period ended 
June 30, 1998 as compared to a net loss of $9.4 million or $1.46 basic loss 
per share in the same period last year.

Publicly-Traded Subsidiary

Lab Holdings' majority-owned subsidiary, LabOne, is publicly-traded.  At 
June 30, 1998, based on the market prices of publicly-traded shares of this 
subsidiary, pretax unrealized gains of approximately $129.2 million on this 
investment were not reflected in either Lab Holdings' book value or 
stockholders' equity.


LIQUIDITY AND CAPITAL RESOURCES

On June 30, 1998, at the holding company level, Lab Holdings had available 
for operations approximately $5.1 million in cash and short-term 
investments.  Lab Holdings' working capital at June 30, 1998 decreased 
slightly to $6.2 million from $6.3 million at December 31, 1997.

On a consolidated basis, Lab Holdings had $17.8 million in cash and short-
term investments at June 30, 1998.  Current assets totaled approximately 
$46.3 million while current liabilities totaled $8.6 million.  Accounts 
receivable increased $3.1 million or 24% from December 31, 1997 due to 
LabOne's increase in revenues for the six month period.

Net cash provided by continuing operations totaled $4.1 million in 1998's 
first six months compared with $33.7 million in 1997's first six months, 
primarily reflecting net earnings in 1998, a net loss in 1997 and a $34 
million net change in the trading portfolio in 1997.  Additionally in 1997, 
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 six months totaled 
$6.3 million, as compared with $10.8 million in 1997's first six months.  
The net cash used in 1998 primarily reflects LabOne's net additions to 
property plant and equipment related to construction of a new facility.  
Net cash used by investing activities in 1997's first six months included a 
net increase in long-term investments of $3.6 million, $2.4 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 $3.9 million in 1998's first six 
months reflects Lab Holdings regular cash dividends to its shareholders.
Net cash used by financing activities in 1997's first six months totaled 
$23.5 million primarily due to the $19.6 million cash transferred to SLH 
and regular cash dividends of $3.9 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 quarterly dividends in 1998 and 1997.  As an 82% owner, 
Lab Holdings received $3.8 million of cash as dividends from LabOne in 
1998.  LabOne's working capital position declined $3.9 million to $31.5 
million at June 30, 1998 from $35.4 million at December 31, 1997.  This 
decrease is primarily due to capital additions and dividends paid exceeding 
LabOne's cash provided by operations before changes in working capital.

LabOne's new facility project is expected to cost approximately $33 million 
and will be financed with an industrial revenue bond (IRB) approved by the 
City of Lenexa (Kansas).  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 will sell $20 million of the $33 million IRB, 
and $13 million will be purchased by LabOne.  LabOne expects to repay the 
bond over 11 years at $1.85 million per year plus interest.  As of June 30, 
1998, total capital expenditures for this project were $10 million.  

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

LabOne is actively addressing Year 2000 computer concerns.  LabOne has 
established an oversight committee which includes management from all parts 
of LabOne that meets periodically to review progress.  LabOne expects to 
complete all internal Year 2000 objectives by the end of the first quarter, 
1999 and is assessing the Year 2000 preparation and contingency plans of 
its clients and vendors.  Total expenses related to this project are not 
expected to be material to LabOne.  However, there can be no assurance that 
LabOne's adjustments to its computer systems will completely eliminate all 
Year 2000 problems.  In addition, there can be no assurance that the 
systems of Lab Holdings' and LabOne's 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 Lab Holdings' and LabOne's computer 
systems.  A 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.

Lab Holdings has completed its Year 2000 internal compliance program and 
believes that its limited computer systems are now Year 2000 compliant.

The SLH Corporation/Syntroleum Corporation merger was completed on August 
7, 1998.  Per the Facilities Sharing and Interim Services Agreement between 
Lab Holdings, SLH and Syntroleum, the former employees of SLH are now 
employees of Lab Holdings.  Concurrently, SLH/Syntroleum is providing 
facilities to Lab Holdings in exchange for certain limited accounting, 
bookkeeping, tax and administrative services by Lab Holdings personnel.  


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 June 30, 1998, the net assets of Lab Holdings, Inc. exceeded its stated 
capital by $48,151,000.

Item 3.  Defaults Upon Senior Securities

         None.

Item 4.  Submission of Matters to a Vote of Securities Holders

         (a)  The annual meeting of shareholders was held on May 14, 1998 
for the purpose of electing a board of directors, approving the adoption of 
the 1997 Directors' Stock Option Plan and approving the appointment of 
auditors.  Proxies for the meeting were solicited and there was no 
solicitation in opposition to management's solicitations.  Holders of 
6,489,103 shares were eligible to vote and 5,270,200 shares were 
represented at the meeting either in person or by proxy.

         (b)  Management's nominee for director as listed in the proxy 
statement was elected with the following vote:

    Director           Shares Voted             Shares        Shares Not
                            For                Withheld         Voted
    --------           ------------            --------       ----------
  Steven K. Fitzwater    5,260,943               8,856            401

         The shareholders approved the adoption of the Lab Holdings, Inc. 
1997 Directors' Stock Option Plan by the following vote:

   Shares Voted        Shares Voted             Shares        Shares Not
       For               Against              Abstaining         Voted
   ------------        ------------           ----------      ----------
     5,066,871             184,325              18,600            404

         The shareholders approved the appointment of KPMG Peat Marwick LLP 
as independent auditors for the year ending December 31, 1998 by the 
following vote:
   Shares Voted        Shares Voted             Shares        Shares Not
       For               Against              Abstaining         Voted
   ------------        ------------           ----------      ----------
     5,261,128                 586               8,084            402

Item 5.  Other Information
         
         Stockholders who intend to present proposals for inclusion in the 
Company's proxy statement for the 1999 annual meeting of shareholders, must 
forward them to the Company at 5000 W. 95th Street, Suite 260, Shawnee 
Mission, Kansas  66207, ATTENTION:  Secretary, so that they are received 
not later than December 20, 1998.  In addition, proxies solicited by 
management may confer discretionary authority to vote on matters which are 
not included in the proxy statement but which are raised at the annual 
meeting by shareholders, unless the Company receives written notice of the 
matter on or before March 8, 1999, at the above address.

Item 6.  Exhibits and Reports on Form 8-K

         (a)  Exhibits:
              
              10.1   1997 Long-Term Incentive Plan of LabOne, Inc. 
(incorporated by reference to Exhibit 10.1 to the LabOne, Inc. Quarterly 
Report on Form 10-Q for the quarter ended June 30, 1998, File No. 0-15975).

              10.2   Form of Stock Option Agreement pursuant to the LabOne 
1997 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.2 to 
the LabOne, Inc. Quarterly Report on Form 10-Q for the quarter ended June 
30, 1998, File No. 0-15975).

              10.3   Lab Holdings, Inc. Facilities Sharing and Interim 
Services Agreement, dated as of June 1, 1998 (incorporated by reference to 
Exhibit 10.29 to the SLH Corporation Registration Statement on Form S-4, 
Registration No. 333-50253).

              27     Financial Data Schedule - as filed electronically by 
the Registrant in conjunction with this Form 10-Q.

         (b)  Reports on Form 8-K:
              None.



                                  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 August 11, 1998                 By  /s/  Steven K. Fitzwater
                                        ----------------------------    
                                        Steven K. Fitzwater
                                        Executive Vice President, Chief
                                        Operating and Financial Officer


Date August 11, 1998                 By  /s/  Linda K. McCoy
                                        ----------------------------
                                        Linda K. McCoy
                                        Vice President and
                                        Chief Accounting Officer